Asia: Nikkei Tracks U.S. Stocks Higher, Hang Seng Extends 2024 Losses to 10%

Arjun Pandit
22 Jan, 2024
Mumbai

Asian markets diverged in Monday's trading in a familiar pattern, with the indexes in Japan trading higher following the gains in New York and foreign investors accelerated sale of Chinese stocks.

Market indexes in Japan advanced following the rise in tech stocks in New York, and in China, investors continued selling stocks after the People's Bank of China held its 1-year and 5-year rates as expected.

The Nikkei index in Tokyo advanced 1.5% to 36,517.84, another new 34-year high, after tech stocks powered the rally following a rise in New York in overnight trading.

SoftBank advanced 2%, Fast Retailing gained more than 1%, Toyota Motor gained 0.5%, and Honda Motor advanced 1.6%.

Tech sector stocks were among the leading gainers, with Tokyo Electron, Advantest, and Screen Holding gaining between 2% and 4%.

Mitsubishi UFJ Financial, Sumitomo Mitsui Financial, and Mizuho advanced between 0.3% and 1%.

 

China Stocks Extend Losses, Hang Seng Down 10% In 2024

The one-year loan prime rate was held steady for the fifth month in a row at 3.45%, and the 5-year loan prime rate used for mortgage rates was maintained for the seventh month in a row at 4.2%.

The Hang Seng index declined 2% to 14,932.18 in Monday's trading after the central bank failed to announce stimulus measures to revive the moribund property market.

The Hang Seng index is down more than 10% from the start of the year, its worst performance in January since 2016.

Baidu declined 3.5%, Tencent fell 2.5%, BYD declined 1.9%, and Li Ning dropped 6.5%.

Foreign investors continue to sell China stocks, keeping pressure on China indexes, as the government shows no sign of offering additional economic stimulus and consumer spending growth remains weak after the ending of COVID-19 restrictions.

So far in 2024, foreign investors have sold more than $4 billion of Chinese stocks, extending the total sale to $26 billion in the last six months, according to data available from Stock Connect.

 

India Stocks Advanced In Special Session On Saturday

Stocks in Mumbai advanced on Saturday in a special session, and financial markets are closed Monday to celebrate Ram Mahotsav.

The Sensex index gained 0.3% and the Nifty index advanced 0.5% in a shortened session on Saturday following the surge in overnight trading in New York.

The S&P 500 index jumped more than 1% and the Nasdaq Composite gained 1.7% after mega-cap tech stocks rebounded and investors overlooked rate path uncertainties.

Investors bid up stocks of banks, tech and financial services providers, and automotive sector stocks.

The Sensex index increased 236.79 points to 71,423.65, and the Nifty index rose 109.55 points to 21,571.80.

On the Mumbai stock exchange, 474 stocks traded at their 52-week highs and 9 stocks traded at their 52-week lows.