Asian Markets Rebound Following US GDP Data, India Awaits Union Budget

Arjun Pandit
27 Jan, 2023
Mumbai

Asian markets traded higher following the strong-than-expected fourth quarter U.S. GDP data on Thursday.  

Market sentiment was boosted after the largest economy in the world expanded at 2.9% annual pace in the fourth quarter and increased 2.1% in full-year 2022. 

Shin Etsu Chemical soared 4%, Yaskawa Electric increased 3% and Rakuten Inc increased 2%. 

The Nikkei index increased 19.81 points to 27,382.56 and the yen firmed to 129.91 against the U.S. dollar. 

For the week, the Nikkei index increased 35. 

Shipping companies and exporters were among the leading gainers. 

Nippon Yusen KK Mitsui OSK Lines and Kawasaki Kisen Kaisha increased 3%. 

Panasonic Corp, Fuji Electric, Sony Group and Olympus Corp increased between 1.7% and 3%. 

Mainland China markets were closed on Friday and markets are set to reopen on Monday. 

The Hang Seng index in Hong Kong increased 0.5% to 22,688.90 following the US GDP data report. For the week, the index gained 3%.  

The Korean Stock Exchange's Kospi Index advanced 15.37 points or 0.6% to close trading at 2,484.02.

 

Sensex In India Trades Lower, Adani Group and Banks Fall 

Benchmark indexes in Mumbai declined after Adani Group stocks dropped more than 5% for the second day following the negative report released by the U.S.-based short seller Hindenburg Research.

Investors generally ignored the allegations of fraud and tight relationship with government-controlled banks and offshore accounts, which have been widely covered by local media in the past.  

Adani Enterprises is set to complete its $2.5 billion secondary offering in the next two weeks. 

State Bank of India, IndusInd Bank and ICICI Bank declined between 3% and 5% on the worries of debt exposure to Adani Group.  

Investors also looked ahead to Union Budget and hoping that the government will provide clarity on incentives for manufacturing companies and increase for a minimum threshold for personal income tax.  

The Sensex index dropped 1.5% or 874.16 points to 59,330.90 and the Nifty index declined 1.6% or 287.60 points to 17,604.35. 

For the week, the indexes declined 2.2%. 

The Indian rupee weakened to 81.54 against the U.S. dollar.