Japan Stock Indexes Retreat from Record Highs as Investors Assess China’s Trade Data
Tokyo, Japan – In a slight setback for Japan’s stock market, the country’s stock indexes retreated from record highs on Thursday. Investors were busy assessing the latest trade data from China, which turned out to be better than expected. The Nikkei 225, after hitting a record high earlier in the day, closed 1.2% lower and fell below the 40,000 mark at 39,598.71. Similarly, the broader Topix lost 0.4% and ended at 2,718.54, also after reaching a record high earlier in the session.
Meanwhile, other Asian stock markets experienced positive gains. The Taiwan weighted index surged over 1%, while Australia’s S&P/ASX 200 rose by 0.39% to reach a new peak at 7,763.7. These gains were attributed to comments made by Jerome Powell, the chair of the U.S. Federal Reserve. Powell reiterated his stance that although the central bank might consider cutting rates, it was not an immediate plan.
In contrast, China’s stock market faced a decline. The CSI 300 index fell by 0.6% to 3,529.72, while the Hang Seng index dropped by 1.4%. However, China’s trade data provided some positive news. According to official data, China’s dollar-denominated exports saw a year-on-year increase of 7.1% for the first two months of the year. This figure surpassed expectations from a Reuters poll, which predicted a rise of only 1.9%.
The positive trade data had a significant impact on Chinese e-commerce company JD.com. Its Hong Kong-listed shares spiked by over 8% following the release of better-than-expected fourth-quarter earnings and the announcement of a share buyback plan worth up to $3 billion, including American depository shares.
South Korea’s stock market had a mixed performance. The Kospi extended its gains by 0.2% to reach 2,647.62, while the Kosdaq experienced a decline of 0.8%, ending at 863.37.
In the United States, the stock market rebounded after two consecutive days of declines. All three major indexes saw gains, with the S&P 500 adding 0.51%, the Nasdaq Composite gaining 0.58%, and the Dow Jones Industrial Average trading higher by 0.2%. However, certain companies such as Apple, Alphabet, and Disney did not participate in the rally, causing a slight drag on the blue-chip average.
Overall, the stock market movements in Japan and Asia were influenced by China’s trade data and comments from the U.S. Federal Reserve chair. While Japan experienced a slight setback, other Asian markets saw positive gains. The impact of China’s trade data was evident in the performance of JD.com’s shares, which soared following the release of strong earnings and a share buyback plan. As for the U.S., the stock market rebounded after recent declines, although some notable companies did not participate in the rally.
Sources:
– CNBC’s Lisa Kailai Han
– CNBC’s Alex Harring