Consumer price inflation dropped to a nine-month low, and producer price deflation extended to the 27th month in a row in December. Tencent Holdings stepped up its stock buyback following the sharp decline in price over the last two weeks.
Benchmark indexes in China and Hong Kong extended losses amid waning enthusiasm about the fiscal stimulus measures, rising geopolitical tensions, and a lack of corporate earnings growth.
The Nikkei 225 stock average and the TOPIX index rebounded, tracking a surge in semiconductor stocks in New York following the quarterly sales update from Taiwan-based Foxconn.
Chinese central bank governor and policymakers vowed to offer additional fiscal and monetary support to revive consumer spending. Shanghai and Shenzhen stock market executives confirm recent meetings with foreign investors and reiterated their commitments to further deregulating capital markets.
Reliance Industries completed its largest bond offering in two years. Bajaj Finance said assets under management and deposits advanced in the fiscal third quarter. Adani Wilmar reported weak volume growth in the December quarter.
In 2024 China and Hong Kong indexes closed up 16% and 19%, respectively. The Hang Seng index halted a 4-year slide and the CSI 300 index arrested a 3-year decline and closed at levels last seen in five years ago.
Japan's key stock indexes delivered strong performance in 2024 amid a rise in corporate earnings driven in part by a weaker yen and the BoJ's plan to raise interest rates gradually.
Stock market indexes in China and Hong Kong lacked direction in thin trading as four companies completed their public offerings, in the busiest listing day in Hong Kong in six months.
Japan's retail sales expanded for the 32nd month and rose at the fastest pace in three months, supported by the continuing rise in wages. The Nikkei Stock Average extended its weekly gain to 3.5%.
Japan's market indexes edged higher for the second session in a row amid rate path uncertainties, and the government looks to ramp up defense spending and increase subsidies to low-income households.
The main reason why Japanese automakers missed the electric vehicle trend is because the government failed to invest in the domestic EV market, and vehicle makers do not see profit in making advanced vehicles.
Investors in China and Hong Kong continued to believe that additional monetary and fiscal stimulus will help to revive earnings growth and consumer confidence.
