Mixed Picture on Asian Stocks After Gloomy World Bank Report

Stock markets in Asia showed a mixed picture on Tuesday. According to government data, industrial companies in China are facing declining profits, and the World Bank lowered its growth forecast for East Asia.

 

Stocks in New York again closed on Monday with losses due to concerns about a recession and interest rate hikes.

The Nikkei in Tokyo gained 0.5 percent, its first gain in a week. Technology group Hitachi Zosen was one of the strongest climbers, with a profit of 4.5 percent. The company plans to spin off its marine engine division and sell over a third of the new business to shipbuilder Imabari.

The Hang Seng in Hong Kong lost 1.1 percent, with internet conglomerates Alibaba (minus 2.9 percent), Tencent (minus 2.7 percent) and oil company Cnooc (minus 1.4 percent) on the main index, among others. The Shanghai stock market was 0.3 percent higher.

Reuters news agency reports based on insiders that Chinese regulators have asked investment funds to prevent large fluctuations in the stock markets. By not selling shares en masse, certain funds had to avoid significant losses before the Communist Party congress.

The World Bank lowered its growth forecast for East Asia mainly because the economy of superpower China is growing less rapidly. At the same time, inflation in the countries will be higher than previously estimated by the financial institution. The Chinese currency yuan, meanwhile, is trading at its lowest level since 2008, prompting the Asian country’s central bank to intervene in the currency market.

The All Ordinaries in Sydney won 0.3 percent, and the Kospi lost 0.6 percent in Seoul. In Australia, consumer confidence improved according to a measurement by the bank Australia & New Zealand Banking Group. This was mainly because Australians are less pessimistic about inflation. The country’s central bank reported that consumers in South Korea also became more positive in September.

Leave A Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.