Asia’s stock markets endured an unspectacular day on Thursday with optimism in short supply as investors waited on earnings and economic data, while geopolitical tensions dented sentiment.
Better-than-expected revenue at chip giant Nvidia lifted the mood slightly across the region but the continuing threat of more rate hikes from the US Fed cast a shadow over trading floors.
China and Hong Kong stocks were subdued after China and Russia vowed to deepen ties and US President Joe Biden pledged to “defend literally every inch of NATO”.
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China’s blue-chip CSI300 Index and the Shanghai Composite Index ended down 0.11%, or 3.67 points, at 3,287.48. The Shenzhen Composite Index on China’s second exchange edged down 0.24%, or 5.09 points, to 2,154.73.
Meanwhile, Hong Kong’s Financial Secretary Paul Chan unveiled policies aimed at reviving the Covid-hit economy.
However, Hong Kong’s Hang Seng benchmark slipped 0.35%, or 72.49 points, to 20,351.35. The Hang Seng China Enterprises Index gained 0.4%, and the Hang Seng Tech Index jumped 1.2%.
MSCI’s broadest index of Asia-Pacific shares outside Japan touched its lowest level since January 6 in early trade, but rose about 0.7% as the day wore on.
Nasdaq futures rose 0.9% thanks to Nvidia’s revenue bump and rosy outlook which sent its shares up nearly 9% after-hours.
Shares in the giant Taiwan Semiconductor Manufacturing Co rose 2.2% to lift Taiwan’s benchmark 1.3%. A 4% gain for SK Hynix and a 2% gain for Samsung drove South Korea’s Kospi 1% higher.
Elsewhere across the region, Sydney, Singapore, Mumbai and Manila all fell, though Wellington and Jakarta edged up. Japan’s markets were closed for a holiday.
Bank of Korea Halts Hikes
The Bank of Korea also offered some relief by pausing a year-long run of uninterrupted rate hikes.
The resumption of Japan trade on Friday could be bumpy, though, as Japanese CPI data is due and investors, who are speculating that a policy shift is nigh, will be positioning ahead of a parliamentary appearance by incoming central bank governor Kazuo Ueda.
Signals elsewhere were less reassuring as this year’s run of strong economic data has investors worrying interest rates will need to keep rising and stay high to put the brakes on inflation.
Oil nursed sharp Wednesday losses and Brent crude futures clung to support around $80 a barrel on Thursday.
Wall Street indexes fell overnight and are eyeing their worst week of the year so far as stronger-than-forecast US labour, inflation, retail sales and manufacturing figures have traders pricing interest rates staying higher for longer.
Minutes from this month’s Federal Reserve meeting, reinforcing a hawkish tone, did little to shift the concern.
Key figures
Tokyo – Nikkei 225 <> CLOSED
Hong Kong – Hang Seng Index < DOWN 0.35% at 20,351.35 (close)
Shanghai – Composite < DOWN 0.11% at 3,287.48 (close)
London – FTSE 100 < DOWN 0.26% at 7,897.45 (Wednesday close)
New York – Dow < DOWN 0.42% at 33,045.09 (0936 GMT)
- Reuters with additional editing by Sean O’Meara
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