The Tokyo stock exchange closed the session up despite the publication of the GDP figure, which disappointed analysts’ estimates, also indicating the first contraction in two quarters. The Nikkei index closed up 0.56% at 29,776.80 points. Shanghai stock exchanges are down by 0.19%, Hong Kong is weak up by 0.10%, after the roundup of data coming from the macro front of China. The Sydney stock exchange rose by 0.36%, Seoul very well with a rebound of the Kospi index of more than + 1%. The stock of the chip-making group Hynix jumped by more than 4%.
Starting with Japan, the country’s gross domestic product for the third quarter of 2021 contracted by 0.8% on a quarterly basis and -3% on an annual basis. The trend was decidedly worse than what analysts expected, and can be explained both by the state of emergency launched by the Tokyo government to contain the infections from Covid-19 – a factor that has ballasted above all consumer spending – and by the crisis of the chips that have invested the whole world and that, in the case of Japan, mainly affected car exports.
Japan’s GDP fell for the first time in two quarters, following growth of + 1.5% in the previous quarter. On an annual basis – trend equal to -3% – economists had forecast a much lower contraction, equal to -0.6%. On a quarterly basis, the consensus had estimated a drop of 0.2%, compared to the -0.6% reported and after + 0.5% in the second quarter.
With regard to the data released in China, in October industrial production rose by 3.5% on an annual basis, better than the + 3% expected by the consensus and strengthening compared to the increase in September, equal to + 3.1% . From the beginning of the year through October, the figure jumped 10.9% year-on-year, however, at a lower rate than the previous 11.8% rise.
China’s retail sales were also widespread, up 4.9% in October on an annual basis, better than the + 3.5% expected and the September growth of + 4.4%. Since the beginning of the year, the figure has risen by 14.9%, compared to + 16.37% in the period between January and September. Also in October, China’s investments in fixed assets (excluding the rural sector) rose by 6.1% year on year, less than the + 6.2% expected and slowing compared to the previous 7.3% increase. Since the beginning of the year, the trend has been 8.5% growth on an annual basis. Finally, China’s unemployment rate was also released, which always stood at 4.9% in October, in line with expectations.