Best Start for Hong Kong Stocks In Two Decades, Yen Weakness Extends to 4th Day

Arjun Pandit
06 Jan, 2023
Mumbai

Market indexes in Tokyo advanced after the yen weakened for the fourth day in a row and weakened from the seven-month high. 

Investors also awaited the U.S. jobs report later in the day. 

The Nikkei average increased 0.59% to 25,973.85 and the broader Topix index closed 0.37% up to 1,875.76. 

For the week, the Nikkei average fell 0.6%. 

Shipping companies, drugmakers and tech stocks led the gainers after investors searched  among beaten down sectors. 

Tokyo Electron, Sony, Honda and Mitsui O.S.K. and Daiichi Sankyo closed higher between 0.5% and 2%. 

China indexes opened higher but late afternoon selling dragged market indexes lower. 

Hong Kong stocks gained the most in two decades in the first week of trading after investors increased exposure to risky assets and China promised to offer more support for first time home buyers. 

The People's Bank of China said in a statement today that it will permit local authorities to lower mortgage rates for first-time home buyers if property prices fall for three months in a row. 

Internet stocks led the gainers after China signaled the end of regulatory tightening. 

Alibaba.com surged 17%, Baidu increased 14% and Tencent advanced 10% in the first week of trading.  

The Hang Seng index ended down 0.29% or 60.53 points to close at 20,991.64 and the Shanghai Composite index increased  2.42 points to 3,157.64. 

For the week, the Hang Seng advanced 6.1% nearing the increase of 6.7% in 1999 in the first week and the Shanghai Composite increased 2.2%. 

 

Japan Auto Sales Drop to 45-year Low 

Auto sales in Japan declined to the lowest level in 45 years as automakers struggle with falling demand, supply chain disruptions and chip shortages. 

New car sales in 2022 dropped 5.6% to 4.2 million and domestic auto sales fell for the fourth year in a row and reached the level last seen in 1977 when sales were 4.19 million. 

The data were reported by the Japan Automobile Dealers Association and Japan Light Motor Vehicle and Motorcycle Association. 

Sales of Toyota declined 12.4% to 1.2 million vehicles, Nissan sales declined 0.8% to 272,020 vehicles and Honda sales fell 1.9% to 269,034 units.

Sales of mini vehicles, automobiles with engines smaller than 600 cc,  declined 0.9% to 1.6 million vehicles and non-mini vehicles sales fell 8.3% to 2.6 million. 

However, December vehicle sales increased 2.4% to 344,365 units and extended monthly gains to the fourth month in a row.