Nikkei Advanced 1%, Hong Kong Court Ordered China Evergrande Liquidation

Arjun Pandit
29 Jan, 2024
Mumbai

Across Asia, markets lacked direction, and investors looked ahead to the release of key economic data in the region.

Investors are also awaiting the release of interest rate decisions from the U.S. Federal Reserve on Wednesday and the Bank of England on Thursday.

Both central banks are widely anticipated to hold rates steady and reiterate their commitment to keep interest rates restrictive to bring inflation down to the target level of 2%.

In Friday's trading, market indexes in New York lacked direction after an alternative measure of inflation showed a decline in December.

Core Personal Consumption Expenditure, which excludes food and energy, rose to 0.2% from 0.1% on a monthly basis, and the annual core rate fell to 2.9% from 3.2%, the lowest level since March 2021.

 

A Broad Rally Lifts the Nikkei Index in Tokyo

The Nikkei index advanced more than 0.8% to 36,027.74 in a broad rally, and investors are awaiting the release of retail sales, unemployment, industrial production, and consumer confidence data in the coming week.

Financial, commodities importers, and vehicle and electronics exporters were among the most actively traded stocks in Tokyo.

Mitsubishi UFJ, Sumitomo Mitsui, Mizuho Financial, and Inpex Corp. gained between 2% and 4%.

Toyota Motor, Sony Group, and Honda Motor added between 2% and 3%.

 

China Announces Additional Measures; HK Court Orders Evergrande Liquidation

Market indexes Shanghai eased 0.6% to 3,315.49 after China's market regulator placed a ban on lending restricted securities listed on mainland exchanges.

The latest measure adds to several steps taken by the government and the central bank to stabilize financial markets after indexes lost more than 30% in the last three years.

The Hang Seng index jumped 0.5% to 16,026.49 and extended last week's gain of 4.2%, and tech stocks were among the most active stocks.

Alibaba Group, JD.com, and Baidu gained about 3%, but Tencent declined 1%.

Homebuilders advanced after Guangzhou city regulators lifted the ban on the purchase of large homes.

Longfor and China Resources Land advanced 0.6%.

China Evergrande plunged 21% to 16 cents after a court in Hong Kong ordered the company's liquidation after the mainland real estate developer failed to present a credible restructuring plan and repay creditors.

Healthcare stocks were under pressure after U.S. lawmakers debated additional sanctions on Chinese biotech companies for collaborating with PLA-linked entities.

WuXi Apptec, Zhongji Innolight, and TCL Zhonghuan dropped between 9% and 12%.

 

India Stocks Advanced Ahead of Interim Budget

Benchmark indexes in Mumbai lacked direction in Monday's trading as investors looked ahead to a busy week of economic data and corporate earnings.

Finance Minister Nirmala Sitharaman is scheduled to present the interim budget to the Lok Sabha on February 1.

Moreover, investors are looking ahead to the release of December automobile sales, infrastructure output, and fiscal deficit updates.

The Sensex index increased 639.59 points to 71,340.26, and the Nifty index rose 185.90 points to 21,538.50.

On the Mumbai stock exchange, 258 stocks traded at their 52-week highs and 9 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds increased to 7.17%, and the Indian rupee held steady at ₹83.13 against the U.S. dollar.

HDFC Bank increased 1.2% to ₹1,453.35 after the Reserve Bank of India permitted Life Insurance Corporation to increase its stake in the bank from 5.19% to up to 9.99%.

Elsewhere in the region, the KOSPI index in Seoul added 1.1% to 2,507.82, and the ASX 200 index in Sydney jumped 0.3% to 7,578.40.