Asian Markets Turned Lower, Hong Kong Removed Decade-old Property Market Curbs

Arjun Pandit
28 Feb, 2024
Mumbai

Stock markets in Japan, India, and China headed lower as investors awaited the release of U.S. inflation data and China's manufacturing report. 

Market sentiment was cautious in the region, and the Japanese yen flirted near a 4-decade low as investors debated the timing of the Bank of Japan's ultra-loose monetary policy. 

Hong Kong stocks were also in focus after the Hong Kong government announced a raft of measures to support the ailing property market, including eliminating decade-old curbs and relaxing mortgage rules. 

But foreign investors continued to sell stocks in Shanghai and Hong Kong due to a lack of earnings growth after a protracted property market decline, and the rising job insecurity kept consumer spending in check. 

 

Nikkei 225 in Tokyo Eased Ahead of U.S. Inflation Report

Stocks in Tokyo traded down, and benchmark indexes struggled to advance after investors turned cautious ahead of the release of U.S. inflation data later in the day. 

The Nikkei 225 average declined 0.1% to 39,208.52, and the Topix index dropped 0.1% to 2,675.77. 

Investors are hoping that the Bank of Japan will continue its ultra-loose monetary policy, but more and more market participants are looking for the central bank to end its zero interest rate policy as early as the second half of this year. 

The Japanese yen edged up to 150.64 against the year; the low was last seen in March 1990, and the interest rate differential between the U.S. and Japan persists over 500 basis points. 

In Wednesday's stock trading, tech stocks were among the leading decliners, and SoftBank, Nintendo, Advantest, and Screen Holdings fell between 0.5% and 4%. 

Electronics exporters Sony, Canon, Panasonic, and Mitsubishi Electric declined between 0.3% and 3%. 

 

China Stocks Look Down, Hong Kong Removes Decade-old Housing Transaction Restrictions 

Stocks in China traded with a familiar pessimism, despite the Hong Kong government's removal of all restrictions placed on property transactions over the last decade. 

The CSI 300 index increased 0.2% to 3,500.69, and the Hang Seng index decreased 0.1% to 16,773.28. 

Hong Kong's finance chief announced sweeping measures to revive the moribund property market, including the elimination of stamp duty for the purchase of second and additional homes by resident and non-resident buyers. 

The government also increased the available mortgage for properties worth less than HK$30 million to 70% from 60% and to 60% for properties worth more than that amount. 

Hong Kong property prices have been falling for nine months in a row, and prices are at the level last seen in 2016. 

Sun Hung Kai, China Vanke, China Resources Land, Henderson Land Development, Link REIT, and Hung Lung Properties gained between 2% and 5%. 

Tech stocks were also down amid market weakness, and Tencent, Alibaba Group, Baidu, and Meituan declined between 0.3% and 2.2%. 

 

India Stocks Traded Lower Amid Cautious Trading

Stocks in Mumbai opened higher, and investors reviewed cautious global market sentiment ahead of the release of economic data in China and the U.S. 

The Sensex and the Nifty indexes traded mixed, and investors remained cautious ahead of the release of the measure of inflation in the U.S. later in the day. 

The Sensex index increased 6.79 points to 73,088.03, and the Nifty index fell 12.55 points to 22,187.50. 

On the Mumbai stock exchange, 116 stocks traded at their 52-week highs and 12 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds increased to 7.06%, and the Indian rupee strengthened to ₹82.88 against the U.S. dollar.