Japan Records Third Consecutive Annual Trade Deficit, Alibaba Insiders Increase Stake

Arjun Pandit
24 Jan, 2024
Mumbai

Markets in Asia lacked momentum, and investors focused on local economic data and corporate earnings.

Crude oil traded volatile in international markets, and shipping companies continue to avoid Red Sea Lanes amid ongoing Houthi rebel attacks in the region.

The Houthi attacks are impacting India's petroleum product shipments; about 25% of all fuel exports are destined for Europe via the Red Sea lanes.

Shipping companies have rerouted most of the container ships from the region along the coast of South Africa, increasing cost and shipping time.

The container ship rate from Shanghai to Rotterdam surged more than 80% from a year ago at the end of the last week to $3,777 per 40-foot container.

The average composite index for the year-to-date is $3,173 for a 40-foot container, $495 higher than the 10-year average rate of $2,678, according to Drewry's World Container Index.

 

Japan Record Third Consecutive Annual Trade Deficit

The Nikkei index decreased 0.8% to 36,221.68 after Japan unexpectedly swung to a trade surplus in December.

Japan's exports rose 9.8% to a new record high of 9.64 trillion yen, and imports fell 6.8% to 9.58 trillion yen, the Ministry of Finance reported Wednesday.

In 2023, exports rose 2.8% to 100.89 trillion yen and imports contracted 7% to 110.18 trillion yen, resulting in a trade deficit of 9.29 trillion yen.

Japan reported a trade deficit for the third year in a row after energy prices soared and exports struggled with weakening global demand.

 

China Offers Verbal Support to Stabilize Financial Markets

Stocks in China advanced for the second day in a row, and Chinese securities regulators pledged more support to stabilize financial markets.

We are going to put all our efforts into "maintaining the stable operation of the capital market," China Securities Regulatory Commission chairman Yi Huiman said during a meeting on Tuesday, according to the government-controlled Securities Times.

The CSI 300 index added 0.9% to 3,261.97, and the Hang Seng Index advanced 1.6% to 15,606.62.

Alibaba Group soared 5.5% to HK$71.35 after Chairman Joe Tsai acquired $151 million of its U.S.-listed shares in the last quarter, according to a SEC filing on January 22.

Co-founder Jack Ma acquired $50 million of the company's Hong Kong-listed stock, according to leading stock brokers in Hong Kong.

 

India Stocks Rebound, Foreign Investors Lighten Holdings

Stocks lacked direction in early trading, and investors reacted to domestic earnings amid heightened geopolitical tensions in the Middle East.

The Sensex and the Nifty indexes struggled to stay in the positive zone, and banks were in focus after foreign investors lightened holdings in the sector.

Foreign investors have stepped up their selling of stocks in India because of the high valuation and rising U.S. bond yields.

In the last five trading sessions, foreign investors have sold about ₹28,000 crore, or $3.2 billion worth of stocks, according to data available from the exchanges.

The Sensex index decreased 53.25 points to 70,322.71, and the Nifty index fell 14.60 points to 21,224.20.

On the Mumbai stock exchange, 105 stocks traded at their 52-week highs and 21 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds increased to 7.17%, and the Indian rupee edged lower to ₹83.14 against the U.S. dollar.