Nikkei 225 In Japan Extends Gains, China Stocks Decline Ahead of Baidu and Li Auto Earnings

Arjun Pandit
26 Feb, 2024
Mumbai

Across Asia, the Nikkei index in Tokyo edged higher, but the CSI 300 and Hang Seng indexes turned lower on the ongoing property market worries and the lack of government measures to stabilize financial markets. 

In Friday's trading, the U.S. markets gained and extended their weekly rise following another AI-powered advance in tech stocks. 

Meanwhile, European markets extended weekly gains following a string of positive earnings and stock buyback announcements from Standard Chartered Bank, HSBC Bank, Mercedes-Benz, Rolls Royce, and Repsol. 

 

Nikkei Trades at a New Record High Ahead of the Inflation Report

Benchmark indexes in Japan advanced after investors returned from a three-day holiday. 

The Nikkei index advanced 0.4% to 39,259.69 and traded at new highs, tracking the advance in New York in Friday's trading. 

Tech stocks led the gainers following a surge in Nvidia's earnings and an optimistic outlook. 

Investors also awaited the release of the inflation update on Tuesday, followed by the release of retail sales, industrial production, and unemployment data later in the week. 

Tech stocks led the gainers in Monday's trading, and SoftBank, Screen Holdings, Tokyo Electron, Advantest, and Renesas Electronics jumped between 0.5% and 1.5%. 

Financial stocks also participated in the market rally for the second day in a row, and Sumitomo Mitsui, Mitsubishi UFJ Financial, and Mizuho Financial gained between 0.6% and 1.2%. 

Sumco, Marubeni, Mitsubishi, Itochu, Chugai Pharmaceuticals, and Nintendo jumped between 2% and 6%. 

 

China Stocks Resume Downward Slide 

Market indexes in Shanghai and Hong Kong traded lower for the second day in a row after indexes advanced in the previous week, and investors awaited earnings from Baidu, NetEase, and Li Auto. 

The CSI 300 index decreased 05% to 3,470.86, and the Hang Seng index fell 0.5% to 16,630.30. 

Alibaba Group, Baidu, NetEase, JD.com, and Meituan decreased between 0.5% and 2.5%. 

Li Auto edged up 0.5% ahead of the release of quarterly earnings later today, and the larger rival BYD advanced 1.8%. 

Hong Kong Exchanges and Clearing decreased 1.3% ahead of its quarterly earnings later in the week. 

Investors have been selling China stocks for the third year in a row due to waning confidence in the authoritarian regime, the protracted property market slump, and foreign investors reallocating capital away from China to Japan and India. 

 

India Stocks Hover Near Record Highs 

Stocks struggled in early trading on Dalal Street as investors reassessed the interest rate path. 

The Reserve Bank of India's January policy meeting last week confirmed that members are not ready to lower rates in the near future, citing volatile and elevated food inflation, dashing hopes of a rate cut as early as May. 

Investors were also cautious after the Nifty index traded at a new high last week after leading corporations generally met or exceeded earnings expectations in the December quarter. 

The Sensex index decreased 137.45 points to 73,005.35, and the Nifty index fell 40.75 points to 22,171.95. 

On the Mumbai stock exchange, 187 stocks traded at their 52-week highs and 11 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds decreased to 7.04%, and the Indian rupee strengthened to ₹82.89 against the U.S. dollar.