The Tokyo Stock Exchange suffered profit-taking Monday after its strong gains last Friday, while the Hong Kong Stock Exchange rose further, buoyed by Beijing’s measures to bail out China’s real estate sector.
Tokyo’s leading index, the Nikkei, fell 1.06% to 27,963.47 points at close and the broader Topix index lost 1.05% to 1,956.90 points.
The Tokyo market suffered the backlash of the euphoria that seized it last Friday, when it was helped by the sharper-than-expected slowdown in US inflation in October, which should lead to less aggressive monetary tightening in the US if this trend will be confirmed in the months to come.
On the other hand, the Hong Kong Stock Exchange continues its momentum (Hang Seng index: + 1.36% around 06:30 GMT), reassured by the measures announced by Beijing to come to the rescue of the Chinese real estate sector in crisis.
Beijing also announced on Friday a slight easing of its anti-Covid policy, which severely penalizes the economy, including a reduction in the quarantine for international arrivals.
The value of today
CRASH SOFTBANK: SoftBank Group shares fell 12.72% to 6,068 yen in Tokyo as investor disappointment was great following the group’s quarterly results on Friday.
The Japanese tech investment giant generated a huge quarterly net profit (equivalent to € 21 billion), but only thanks to an even bigger bumper gain from the sale of part of its Alibaba shares.
SoftBank has not launched a new program to buy back its shares to support its share price as before, and has also postponed its plan to IPO its subsidiary Arm, a British microprocessor designer.
On the side of currencies and oil
The dollar rose slightly against the yen, to exchange one dollar for 139.35 yen around 06:30 GMT versus 138.31 yen on Friday. But the greenback’s fall against the yen was spectacular last week after slowing US inflation.
The euro was almost stable at 143.70 yen versus 143.63 yen at the end of last week, and the European currency fell to $ 1.0307 against $ 1.0347 on Friday.
The oil market is back in the red after an upward start in Asia: around 06:30 GMT the barrel of WTI lost 0.61% to $ 88.42 and the North Sea barrel of Brent fell. 0.52% at $ 95.49.
etb / nth