Equity markets in Asia closed on a positive note amid the euphoria generated by China’s surprise announcement of a 50-basis point cut in the reserve requirement for banks. The resultant liquidity infusion into the economy is seen supporting a fragile recovery.
China’s Shanghai Composite Index surged 3.0 percent to finish trading at 2,906.11. The day’s trading ranged between 2,906.79 and 2,821.71. The Shenzhen Component Index also jumped 2 percent to close at 8,856.22.
The Japanese benchmark Nikkei 225 added 10 points or less than a tenth of a percent to end trading at 36,236.47. The day’s trading range was between 36,312.36 and 35,912.54.
DIC Corp. was the top gainer with a surge of 5.5 percent followed by Nippon Paper Industries that added 4.9 percent. Mitsubishi Materials Corp., Furukawa Electric and Fuji Electric all gained more than 3 percent.
Recruit Holdings, Shionogi, Chugai Pharmaceutical, Kikkoman Corp, Suzuki Motor Corp. all slipped more than 2 percent.
The Hang Seng Index of the Hong Kong Stock Exchange spiked 312.09 points or 2.0 percent from the previous close to finish trading at 16,211.96. The day’s trading range was between a high of 16,254.93 and a low of 15,828.93.
The Korean Stock Exchange’s Kospi Index edged slightly higher to close trading at 2,470.34. The day’s trading range was between 2,452.36 and 2,474.01.
Australia’s S&P/ASX200 Index closed trading at 7,555.40, gaining 0.5 percent. The day’s trading range was between 7,519.20 and 7,558.80.
Weebit Nano surged 8.8 percent, followed by Mineral Resources that rallied 7.1 percent. Resmed jumped 6.4 percent. Mining business Incitec Pivot and healthcare equipment business Nanosonics both added more than 4 percent.
Domino’s Pizza Enterprises tumbled 31 percent after first-half profits missed estimates. Sayona Mining plunged 9.1 percent. Core Lithium and Block both slumped more than 5 percent. Homeco Daily Needs REIT erased 4.8 percent.
The NZX 50 Index of the New Zealand Stock Exchange added 0.3 percent to close trading at 11,889.63. The index closed near a 6-month high amidst relief at the annual inflation readings touching a more than two-year low. Trading ranged between 11,788.76 and 11,889.63.
Synlait Milk topped gains with a surge of 3.5 percent. NZX, Goodman Property Trust, Precinct Properties NZ all gained more than 2 percent. Summerset Group Holdings also added close to 2 percent.
Sky Network Television slid 2.5 percent. Pacific Edge, Fonterra Shareholders Fund, Oceania Healthcare and KMD Brands all declined more than 1 percent.
Wall Street closed on a mixed note on Wednesday amidst strong earning updates, especially from the tech sector. Nasdaq Composite added 0.4 percent to close at 15,481.92 whereas the Dow Jones Industrial Average slipped 0.3 percent to finish trading at 37,806.39.
Business News
Asian Markets Cheer Chinese Stimulus
2024-01-25 10:05:05
