China Stocks Rebound After Positive Earnings, Yen Hovers Near 4-month Low

Arjun Pandit
26 Mar, 2024
Mumbai

Asian markets traded mixed amid rising geopolitical tensions and rising crude oil prices. 

Market sentiment was weak on the ongoing worries of rising tensions in the Red Sea and Russia enlarging its bombing campaign to key targets in Kyiv and Lviv, a town close to a border with Poland.

 

Japanese Stocks Rest, Yen Hovers Near 4-month Low 

Benchmark indexes in Tokyo rebounded after weak trading in the previous session. 

Investors focused on the volatility in the yen, and the currency stabilized around 151.40 against the U.S. dollar in the hopes of government intervention. 

Tech and financial stocks were among the leading gainers in the hopes of faster economic growth as domestic investors step up investing in large-cap stocks. 

Investors are awaiting the release of retail sales, industrial production, and the unemployment rate later in the week. 

The Nikkei 225 Stock Average decreased 0.1% to 40,370.29, and the Topix edged down 0.01% to 2,777.31. 

Softbank, Tokyo Electron, Advantest, and Screen Holdings edged up between 0.5% and 1.5%. 

 

China Indexes Edge Higher Amid Positive Earnings

Benchmark indexes in Shanghai and Hong Kong retained an upward bias as investors reviewed the latest earnings from PetroChina, China Resources Land, and China Merchants Bank. 

In cautious trading, market indexes struggled to gain traction, and investors worried that the latest intervention-driven rebound in stocks may not be durable despite a string of positive earnings. 

Investors are awaiting the release of earnings from at least 20 leading companies this week. 

The CSI 300 index declined 0.04% to 3,524.39, and the Hang Seng index decreased 0.06% to 16,461.11. 

China Merchants Bank advanced 4.5% to HK$31.35 after the financial services company reported a 6.2% increase in annual earnings in 2023 to 146.6 billion yuan, or $10.2 billion. 

China Resources Land gained 1.4% to HK$24.65 after the property developer reported better-than-expected 2023 earnings of 31.4 billion yuan, or $4.4 billion. 

Revenue in the full-year increased 21.3% to 251.1 billion yuan, and profit attributable to shareholders rose 11.7% to record 31.4 billion yuan from 28.1 billion a year ago. 

Core profit, excluding investment gains, edged up 2.7% to 27.8 billion yuan. 

The company's board recommended a final dividend of 1.243 yuan per share, and together with the interim dividend of 0.198 yuan per share, the total dividend for 2023 increased by 2.9% from a year ago to 1.441 yuan per share.

As of the end of the year 2023, the net long-term debt-to-equity ratio eased 6.2 percentage points from a year ago to 32.6%, while the weighted average cost of debt decreased 19 basis points to a ten-year low of 3.56%.

Earnings per share advanced to 4.40 yuan from 3.94 yuan a year ago. 

PetroChina, the listed arm of the state-controlled China National Petroleum Corporation, increased 0.6% to HK$6.50 after the oil exploration and refinery company reported a record annual profit in 2023. 

2023 revenue declined 7% to 3.0 trillion yuan from 3.3 trillion yuan, and profit attributable to shareholders increased 8% to 161.1 billion yuan from 148.7 billion yuan a year ago. 

 

India Indexes Look Down in Cautious Trading

Stocks in Mumbai traded down as investors returned after a long holiday weekend. 

The Sensex index and the Nifty Composite edged down 0.1% in early trading amid mixed markets in Asia and elevated crude oil prices in international trading. 

Popular benchmark indexes declined in a holiday-shortened week with only three trading days this week. 

Financial markets were closed on Monday to celebrate the festival of color Holi and mark the arrival of spring, and markets were closed on Friday to celebrate Good Friday. 

The financial markets are closed on Friday in Europe and the U.S., and they are closed on Monday in Europe. 

India's foreign exchange reserve increased to a record high of $642.3 billion at the end of the week ending March 15, the Reserve Bank of India reported in its latest update. 

Rising service exports, falling energy imports, and a steady inflow of foreign remittances are supporting the growth in foreign reserves. 

The Sensex index decreased 0.2% to 72,659.64, and the Nifty index edged down 0.2% to 22,044.50. 

On the Mumbai stock exchange, 44 stocks traded at their 52-week highs and 24 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds increased to 7.08%, and the Indian rupee edged lower to ₹83.35 against the U.S. dollar.