Prime Highlights:
Asian stock markets were mixed after China said industrial profits fell more than 7% in November, the fourth straight month of decline.
The Nikkei-225 jumped 1.8% to 40,285.25 by the close, Japan’s currency fell as concern is growing over delayed interest rates from the Bank of Japan.
Industrial profits in China dropped nearly 5% year-on-year for January-November, adding to ongoing economic worries in the region.
Key Background:
Asian stock markets were mixed on Friday as China stated that industrial profits fell for the fourth consecutive month in November. Another factor weighing upon investor sentiment was a drop-in oil prices and lower U.S. futures. Meanwhile, in Japan, the Nikkei 225 index rose by 1.8%, reaching 40,285.25, following positive signals from the Bank of Japan Governor, who indicated a potential delay in interest rate hikes due to global economic conditions, including U.S. import restrictions on various countries. The Yen saw downward activity of ¥157.71from ¥158.00 because the dollar had declined several days ago below ¥150 at some time.
In contrast, Hong Kong’s Hang Seng index edged down 0.1% to 20,120.54, whereas the Shanghai Composite increased by 0.5%, closing at 3,399.27. The industrial profits in China declined by more than 7% in November year-on-year, part of a bigger downtrend for the whole year and near 5% decrease occurred during first 11 months. South Korea’s Kospi declined 0.8% to 2,410.35 as political instability follows after the opposition party had filed a motion for acting President Yoon Suk Yeol’s impeachment amid concerns of a constitutional crisis.
U.S. markets were relatively flat. The S&P 500 closed almost even at 6,037.59, the Dow Jones added 0.1% to 43,325.80, and the Nasdaq Composite fell 0.1% to 20,020.36. Low trading volumes and the holiday season dulled activity, analysts labeling it a “holding pattern” in U.S. equities. Benchmark crude in the commodities market decreased to $69.58 per barrel, while Brent crude fell to $72.78 per barrel. Investors will be keeping an eye on the next week’s data on the U.S. economic indicators such as sales of new homes, construction spending, and manufacturing activity.
