Nikkei Index Nears 34-year Record High, Bargain Hunters Return to Hong Kong

Arjun Pandit
16 Feb, 2024
Mumbai

Asian markets traded higher tracking gains in overnight trading in New York, and the Nikkei index in Japan soared 1.8% and inched closer to its all-time high of 38,957.44 in December 1989. 

In Tokyo, the Nikkei index added 1% to 38,555.28; in Hong Kong, the Hang Seng index rose 2.4% to 16,323.13; and in Seoul, the KOSPI index added 1.2% to 2,644.27. 

 

Nikkei In Tokyo Nears 1989 Record High 

Trading in Tokyo dominated Asian markets, and the Nikkei index advanced on the hope that the Bank of Japan will keep intact its ultra-loose monetary policy after Japan entered into a technical recession and slipped behind Germany as the fourth largest economy in the world. 

Tech stocks led the gainers in Tokyo after the S&P 500 index notched a new record high in overnight trading.

Tokyo Electron, Advantest, Screen Holdings, and Renesas Electronics gained between 0.5% and 5.5%. 

Rakuten Group soared 6.6% to ¥779.90 after the technology conglomerate and mobile phone service provider reported a smaller annual loss. 

Net loss in the year ending in December declined to ¥339.4 billion from ¥377.2 billion, and the company said it plans to skip its dividend for the first time in 23 years. 

The company said it plans to increase its mobile phone subscriber base to 8 million from 6.09 million at the end of 2023, the level needed to turn the division profitable. 

The technology conglomerate is struggling with its finances as ¥800 billion of bonds are maturing in 2024 and 2025, but the company plans to buy back bonds maturing in November using the $1.8 billion raised from the sale of a new bond maturing in February 2027. 

 

Hang Seng Index Advanced After Bargain Hunters Returned

The Hang Seng index in Hong Kong surged more than 2% and extended its weekly gain to 2.2% after bargain hunters returned to increase their holdings of tech companies. 

Alibaba Group, Baidu, Tencent, JD.com, and Meituan advanced between 0.2% and 4.5%. 

The Hang Seng Index Company, the benchmark index manager, is scheduled to release its quarterly review of constituents later, after the close of index revisions effective March 4. 

JD Logistics, Xpeng, and Kuaishou advanced on speculation that they will be included in the index starting next month. 

Financial markets in mainland China are scheduled to reopen on Monday after investors return from a week-long Lunar New Year holiday. 

 

India Stocks Extend Weekly Gains 

Stocks in Mumbai looked up in early trading, and investors reviewed the last batch of earnings results. 

The Sensex and the Nifty indexes advanced 0.2%, and construction, engineering, and transportation companies were in focus. 

Oil and gas producers were in focus after the government hiked its windfall tax on petroleum crude oil and diesel. 

The Sensex index increased 188.06 points to 72,238.44, and the Nifty index rose 67.30 points to 21,978.05.

For the week, the Sensex advanced 1.4% and the Nifty index rose 1.0%. 

On the Mumbai stock exchange, 162 stocks traded at their 52-week highs and 8 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds held steady at 7.08%, and the Indian rupee strengthened to ₹83.01 against the U.S. dollar.

 

Philippines Awards Manila Airport Contract to SMC-led Consortium

GMR Airports lost its bid to develop and operate Manila, the Philippines main airport. 

The Philippines Transportation Department awarded the project to develop Ninoy Aquino International Airport to a San Miguel-led consortium. 

The SMC consortium, headed by tycoon Ramon Ang, offered the central government 82% of revenue if it won the airport project privatization deal. 

NAIA is ranked as the worst international airport worldwide, is one of the oldest airports in the Philippines, and has suffered from severe congestion and frequent power failures. 

 

 

India's Overall Trade Deficit Shrinks in January

Overall exports in January rose to $69.7 billion from $63.80 billion, and overall imports advanced to $70.5 billion from $67.6 billion, resulting in a decline in the overall deficit to $0.7 billion from $3.9 billion a year ago. 

Petroleum products, engineering goods, iron ore, electronic goods, drugs, and pharmaceuticals were the main drivers of merchandise exports in January. 

India's merchandise trade deficit increased to $17.5 billion in January from $16 billion in December, the Commerce Department said today. 

Exports rose 3% to $36.9 billion and imports advanced 4.2% to $54.4 billion, and falling commodity prices and weaker demand in Europe and the U.S. weighed on export shipments. 

Service exports rose 17% to $32.8 billion, and imports advanced 8.3% to $16.1 billion, resulting in a traded surplus of $16.8 billion.