Arm IPO Lifted SoftBank, China Retail Sales and Industrial Output Improved but Property Prices Fell

Arjun Pandit
15 Sep, 2023
Mumbai

Market indexes in Asia traded higher and China's economic data showed improving monthly data. 

China's retail sales and industrial output rose more than expected in August, but the economy is struggling to find its traction. 

New home prices in 70 large and medium cities in China declined 0.3% in August from the previous month, following a 0.2% decline in July, the National Bureau of Statistics showed Friday. 

Price increases were seen only 18 cities in August, compared to 20 in August. 

The People's Bank of China on Thursday that it plans to cut reserve requirement ratio for all banks by 25 basis points from Friday for all banks, except banks that have lowered the reserve ratio to 5%. 

But despite the supporting measures by the government and the central bank, the property market slump is likely to persist for another year on weak sentiment among buyers. 

SoftBank Group Corp increased 2% to ¥6,718.0 after the company successfully completed initial public offering of Arm in New York and raised $4.9 billion. 

Arm sold 95.5 million shares at $51 a share, near the top end of its pricing range, and the stock closed up 25% to $61. 

 

China Retail Sales and Industrial Output Expanded

China's retail sales and industrial output expanded at a faster pace after the government stepped up stimulus measures. 

China's retail sales growth accelerated in August to a 3-month high of 4.6% from a year ago after increasing at a 2.5% in the previous month, the National Bureau of Statistics reported Friday. 

Industrial production rose 4.5% in August following the 3.7% rise in July, the government statistics agency reported Friday in a separate report.  

The European Central Bank lifted its key lending rates for the 10th time in a row in over a year and the central bank said inflation is still too high and for too long. 

But the statement released by the central bank also noted that policymakers may be nearing its aggressive rate hike campaign and are reviewing the cumulative impact of 425 basis points rate hikes. 

Main deposit facility rate was revised higher by 25 basis points to record high 4.0% from -0.5% in June 2022, 

Main refinancing operation and marginal lending facility rates were revised higher by 25 basis points to 4.5% and 4.75% respectively.    

 

Asia Market Indexes 

In Friday's trading, the Nikkei index increased 1.1% to 33,533.09, the Shanghai SSE Composite index decreased 0.3% to 3,117.34, the Hang Seng index added 1% to 18,226.58 and the KOSPI index increased 1.1% to 2,601.28. 

Despite the tough talks from the finance ministry officials, the Japanese yen continued to drift lower and traded at 147.70 against the U.S. dollar in Tokyo. 

Investors bid up stocks in Mumbai and bond yield edged lower after the release of inflation reports this week. 

Popular market indexes edged higher to new records following the easing of wholesale price consumer price inflation, but rising oil prices in international markets kept gains in check. 

Market sentiment was positive and the Sensex and the Nifty indexes extended gains for the third week in a row after falling in previous six weeks in a row.

For the week, the Nikkei index jumped 2.8%, the SSE Composite index edged lower 0.06%, the Hang Seng index added 1.6% and the KOSPI index added 2.1%. 

In August, the Nikkei index fell 0.6%, the SSE Composite index declined 5.2%, the Hang Seng index fell 8.2% and the KOSPI index decreased 4.2%.