Japan-Holland-US Alliance In Focus In Tokyo and China Trading

Arjun Pandit
30 Jan, 2023
Mumbai

Asian markets lacked direction as investors awaited rate decisions and Chinese stocks closed mixed after a week-long holiday. 

Chinese State Council reiterated its commitment to boost spending and health authorities announced a sharp decline in daily death rate related to Convid-19. 

Investors were also cautious after the U.S., Japan and the Netherlands struck a deal to limit their exports of advanced semiconductor equipment to China. 

The details of the pact are still not clear, but the alliance of three countries are expected to finalize the details of legislation in the next six months. 

The restrictions are likely to include 28 nanometer ultraviolet lithography equipment used in the production of graphic chips, central processing units and high-speed networking chips, according to a research note prepared by Jeffries analyst Edison Lee.  

Deep ultraviolet equipment made by the Japanese companies Canon and Nikon Corp could also come into restrictions, forcing production cuts at the leading Chinese chipmakers China Semiconductor Manufacturing International Corp and Hua Hong and Shanghai Huali Microelectronics Corp and ChangXin Memory Technologies, Lee said in the note. 

Stocks in Japan closed higher in after a volatile session.  

The Nikkei index increased 0.2% to 27,433.40 and the yen inched lower to 130.18 against the U.S. dollar. 

Fanuc Corp increased 3.5% to ¥23,165.0 and Shin-Etsu Chemical 5% to ¥19,235.0 after the silicon wafer maker lifted its operating earnings outlook. 

 

Covid-19 Flare-up Worries Chinese Health Authorities 

Stocks in China closed mixed and about 300 million completed their holiday travel according to a statement by the ministry of tourism and culture. 

Markets are worried that Covid-19 infections are liked to flare-up in the coming weeks in rural China and death rates are expected rise in Sichuan, Hebei, Yunnan and Guangxi provinces.   

The Shanghai Composite index increased 0.1% to 3,269.32 and the Hang Seng index fell 2.7% to 22,069.73. 

The Kospi average in Seoul decreased 1.35% to close at 2,450.47 after five days of advance in a row following the weakness in auto and technology stocks. 

 

India Stocks React to Earnings 

Stocks rebounded after a holiday-shortened week of volatile trading and Adani Group stocks remained under pressure.  

Adani Enterprise is still looking to complete its secondary offering as early as this week and the Abu Dhabi controlled investment arm agreed to invest about $400 million. 

International Holding Company will make its second investment after the company invested $2 billion in three companies controlled by the group last year.

The Sensex index increased 0.3% or 158.81 points to 59,500.41 and the Nifty index added 0.3% or 44.60 points to 17,648.95. 

The rupee held firm near 81.47 against the U.S. dollar. 

After the close of regular trading hours, Larsen & Toubro said quarterly net income increased 24% and Bharat Petroleum Corporation said quarterly net declined 36%. 

Tech Mahindra said quarterly revenue topped $1 billion for the first time and revenue increased 19.9% but net income fell 5.3% from a year ago in the December quarter. 

Bajaj Finance jumped 4% after the financial services provider reported a surge in the December quarter earnings.