Asian Markets Closed Mixed After China Reimposed Mass Testing

Arjun Pandit
04 Jul, 2022
New York City

Stock markets across Asia closed mixed after China reported rising coronavirus cases and energy prices closed higher in the region. 

The Nikkei 225 index gained 0.8% to 26,153.81, the Hang Seng index fell 0.1% to 21,830.35, and the Sensex index closed up 0.6% to 53,234.77. 

Tokyo Electric Power Company jumped 13.0% to 654.0 yen after Japan suffered its worst heatwave in decades and the country is facing an energy crunch. 

Unseasonably high temperatures of 104 degrees Fahrenheit or 40 degrees Celsius were reported in some parts of the country. 

Japan has increased its reliance on imported oil after the Fukushima nuclear disaster and tsunami in 2011. But with the yen at a two-decade low, most consumers are facing sharp increases in utility bills. 

SoftBank Group increased 2.9% to 5,283.0 after the tech giant's investment subsidiary Fortress Investment is the leading contender to buy Seven & I's struggling department store chain Sogo & Seibu. 

Department stores closed down after J. Front Retailing reported slowing sales growth for its Daimaru and Matsuzakaya stores. 

J. Front Retailing declined 5.6% to 1,107.07 yen after the retailer said total sales at Daimaru and Matsuzakaya increased 18.8% and jumped 27.2% in the quarter to June. 

Isetan Mitsukoshi declined 4.3% to 1,061 yen and Takashimaya Company fell 2.2% to 1,414.0 yen. 

Indexes in Shanghai closed higher despite the local authorities in several cities reimposed mass testing. 

Chinese authorities demanded more testing for coronavirus after Anhui province in eastern China reported 380 new infection cases over the weekend. 

The new infections were less than 200 in the entire month of June, and local officials have forced the closure of local businesses and locked down more than one million people. 

Si town with 760,000 residents and Lingbi town with more than one million residents were placed in a lockdown. 

Of the 380 infections reported, 41 were symptomatic and 339 were asymptomatic, the National Health Commission said on Monday. 

However, no new deaths related to the virus infections were reported over the weekend. 

Stocks in Mumbai rebounded from the morning losses on sustained buying in banks and consumer stocks.  

The Sensex index 326.84 or 0.6% to 53,234.77 and the Nifty index advanced 0.5% or 83.30 to 15,835.35. 

The Kospi average in Seoul declined 0.2% to 2,300.4 and Nomura Research cited the country along with several developed economies are likely to face recession in the next one year. 

The Kospi average extended losses for the fourth day and fell to a new 20-month low. 

Shipbuilders, chemical makers, and real estate developers led the losers. 

Australian markets closed higher led by a rally in bank and energy stocks. 

The Reserve Bank of Australia is set to increase its benchmark rate by 50 basis points tomorrow. 

The ASX 200 index jumped 1.11% to 6,612.60 and the broader All Ordinaries index closed up 1.14% to 6,796.90.

The total number of building permits issued on a seasonally adjusted basis rose 9.9% to 16,390 in May, the Australian Bureau of Statistics said on Monday.