Home Business Tokyo Stock Exchange -0.72%, rallies reopening shares in Hong Kong are not enough to avoid Hang Seng decline

Tokyo Stock Exchange -0.72%, rallies reopening shares in Hong Kong are not enough to avoid Hang Seng decline

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Tokyo Stock Exchange -0.72%, rallies reopening shares in Hong Kong are not enough to avoid Hang Seng decline

Asian stock markets sunk by the negative sentiment that continues to persist globally, starting with Wall Street. Yesterday another negative session for the US stock market: the Dow Jones closed down 350.76 points (-1.03%) at 33,596.34 points; the S&P 500 fell 1.44% to 3,941.26 points, while the Nasdaq Composite retreated 2% to 11,014.89. In Asia, the Nikkei 225 index of the Tokyo stock exchange closed down by 0.72%: -0.72% also for the Shanghai stock exchange, while Hong Kong dropped more than 1%, Seoul lost 0.49% and Sydney 0.85%.

The news of further easing of restrictions and anti-Covid lockdown measures in China have sparked new rallies on the Hong Kong stock exchange in the last few hours. The buys weren’t enough to support the Hang Seng stock index, however.

Above all, the shares of the companies that would benefit most from the reopening of the Chinese economy were flying, such as those of the airlines Cathay Pacific, of Air China, shot up to +18%, of China Eastern Airlines (+15%) and China Southern Airlines.

The Chinese National Health Commission has announced in the last few hours that it will no longer be mandatory for travelers to China to show negative results of anti-Covid tests between one region and another; areas that are not defined as high risk will be able to keep production sites active.

Again, patients with Covid but without symptoms can also choose to isolate themselves in their homes for five days.

On the macroeconomic front of China, the numbers on the trade balance were released, which showed that, in November, exports denominated in dollars fell by 8.7% at an annualized pace, well beyond the decline of 3.5 % estimated by consensus. Imports fell 10.6% year-on-year, more than the expected 6% decline. The result was a trade surplus of $69.84 billion, less than the $78.1 billion expected.

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Among the main macro data released in the Asia-Pacific markets, the GDP of Australia, which, in the third quarter of the year, grew by 0.6% on a quarterly basis, at a slower pace than the expected growth of 0, 7%, and a slowdown compared to the previous +0.9%.

On an annual basis, GDP jumped by 5.9%, in line with the outlook of economists, who had forecast an expansion of around 6%, at the strongest pace since at least 2000, thanks to the easing of Covid-related lockdowns in effect last year.

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