Asian Markets Advance, China's Inflation and International Trade Data In Spotlight

Li Chen
09 Apr, 2024
Hong Kong

Stocks in Asia generally advanced as investors shifted their focus to the start of the earnings season. 

Market sentiment was positive in Asia, ahead of the release of key economic data in China. 

In Asia, market indexes in Tokyo advanced 0.4%, Hong Kong advanced 0.6%, and Shanghai and Seoul declined 0.3%. 

 

Tech Stocks Lead Japan Indexes Higher 

Stocks in Tokyo rebounded for the second day in a row, led by a surge in tech stocks. 

The yen approached the 152 mark against the U.S. dollar as nervous traders worried about government intervention in the currency market. 

The yen has been hovering at a multi-year high after the Bank of Japan ended its negative rate policy after eight years and lifted interest rates for the first time since February 2007.

Policymakers were hoping that the yen would strengthen after the end of the negative rate regime on March 19, but the currency has continued to weaken. 

The Nikkei 225 Stock Average jumped 0.9% to 39,713.49, and the Topix index advanced 0.8% to 2,750.40. 

Among the most active tech stocks, SoftBank, Tokyo Electron, Advantest, Disco Corp., Renesas Electronics, and Shin-Etsu Chemical advanced between 1% and 3%. 

Financial stocks also participated in the market rally. 

Mitsubishi UFJ, Sumitomo Mitsui Financial, and Mizuho Financial advanced between 0.2% and 0.4%. 

 

Cautious Trading in China Ahead of Inflation and Foreign Trade Data

Stocks in Shanghai and Hong Kong diverged, and investors looked forward to the release of inflation and foreign trade data later in the week. 

Stocks in Shanghai remained under pressure ahead of the release of consumer price data on Wednesday, and investors are hoping prices edged higher by 0.4% in March, the second monthly increase in a row. 

Moreover, investors are anticipating exports to decline between 1% and 2% in March, and trade surplus to expand.  

China's exports in the January–February period rose 7.1% and imports rose 3.1% from a year ago, respectively, according to the customs agency. 

The CSI 300 index decreased 0.3% to 3,526.63, and the Hang Seng Index advanced 0.8% to 16,861.38. 

Net Ease increased 4.7% to HK$158.50, after the National Press and Publication Administration approved 15 foreign computer games for the Chinese market. 

Electric vehicle makers advanced in the hopes of higher domestic and international sales in the second quarte.  

Li Auto increased 2.2% to HK$123.40, BYD added 2.5% to $207.0, and Xiamo Corp. jumped 2.9% to HK$15.94. 

Property stocks were in focus after Country Garden reported a sharp decline in sales in March. 

Contracted sales in March plunged 83% to 4.3 billion yuan, and when measured by area, they dropped 85% to 450,000 square meters. 

China Vanke, China Resources Land, and Henderson Land edged higher between 0.2% and 0.6%.  

The Guangdong-based Country Garden's stock is suspended from trading on the Hong Kong Stock Exchange, as the company missed Thursday's deadline to file its annual report. 

 

India Indexes Inch Higher in Record Zone Ahead of Earnings Season

Stocks in Mumbai edged higher in subdued trading, as the earnings season gained momentum. 

The Sensex and the Nifty indexes struggled to advance in early trading as investors looked forward to the release of corporate earnings from tech services providers. 

Stocks in Mumbai are struggling to advance in the second quarter ahead of the general election next month, and there are worries about high valuations in the small and mid-cap sectors. 

Moreover, the recent rise in commodity and metal prices has rekindled the fear of resurgent inflation, negatively impacting vehicle sales. 

Brent crude oil price decreased 1.6% to $89.70 a barrel, after tensions eased in the Middle East after negotiations between Israel and Hamas resumed in Egypt. 

However, Israel stressed that its army is ready to launch a military strike in Rafah City, Gaza, if a settlement is not reached soon. 

The Sensex index increased 0.5% to 74,635.23, and the Nifty index edged higher by 0.3% to 22,621.95. 

On the Mumbai stock exchange, 266 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 inched higher to 7.15%, and the Indian rupee edged lower at ₹83.26 against the U.S. dollar.

Axis Bank rose 1.7% to ₹1,077.0 after the private equity firm Bain Capital plans to sell its remaining stake in the bank through a block trade in the price range between ₹1,071 and ₹1,076 per share.

Tata Motors increased 0.6% to ₹1,012.70 after the company's Jaguar Land Rover unit said vehicle sales in the March quarter increased 11% to 114,038. 

For the fiscal year ending in March 2024, vehicle sales advanced 22% to 431,733 units.