Japanese Stocks Fall, Snapping Six-Day Winning Streak
Tokyo, Japan – Japanese stocks fell on Monday, snapping a six-day winning streak as the Nikkei 225 dropped 1%. The decline was led by consumer cyclicals, basic materials, and real estate stocks. The Topix also shed 0.43%, but both indexes maintained levels at the highest since 1990.
The Japanese yen remained flat after weakening against the U.S. dollar. The Bank of Japan left its monetary policy unchanged last week, including its ultra-low interest rates and yield curve control scheme.
The yield on the 10-year Japanese Government Bond fell slightly and last traded at 0.392%.
AstraZeneca Considers Spinning Off China Business Amid Political Tensions
Pharmaceutical company AstraZeneca is reportedly considering a plan to spin off its China business and list it in Hong Kong. The move comes amid political tensions between China and foreign companies. A separate listing in Hong Kong or Shanghai could insulate the business politically and help investors in the remaining company reduce exposure to China-related risks.
Luxury Gourmet Lifestyle Group Chooses Singapore for Bacha Coffee’s Flagship Store
V3 Gourmet, the owner of Bacha Coffee, has chosen Singapore as the location for its flagship store. CEO and President Taha Bouqdib stated that having a store in Singapore makes it easier to do business in larger markets like Malaysia, Indonesia, and China.
Asia Week Ahead: China Loan Prime Rates and Southeast Asia Central Banks
The week of June 19 will be significant for central banks in the region. The People’s Bank of China will announce its loan prime rate, and key policy meetings will take place in Southeast Asia. Inflation numbers for Japan, Singapore, and Malaysia will also be closely watched.
Oil Prices Dip Over Concerns of China’s Economic Recovery
Oil prices dipped over 1% as concerns over China’s economic recovery continue to loom over markets. Major banks have trimmed their 2023 GDP forecasts for China, leading to a cooling economic rebound forecast. Brent crude futures dropped 1.46% to $75.49 a barrel, while U.S. West Texas Intermediate crude futures shed 1.39% to $70.78 a barrel.
These are the top news stories from Tokyo, Japan. Stay tuned for more updates.Title: Tokyo, Japan: Asian Markets Mixed as China Leaves Loan Rates Unchanged
Date: June 19, 2023
Tokyo, Japan – Asian markets experienced mixed results on Monday, with Japan’s markets hovering near 33-year highs. The Nikkei 225, which had posted weekly gains for the last 10 weeks, slipped 1% to close at 33,370.42. The Topix also fell 0.43% and ended at 2,290.5. South Korea’s Kospi dropped 0.62% to end at 2,609.5, while the Kosdaq saw a marginal increase to finish at 888.61.
Hong Kong’s Hang Seng index led losses in the wider region, falling 1.15%, along with the Hang Seng Tech index, which dropped 1.96%. In mainland China, the Shanghai Composite was down 0.5%, and the Shenzhen Component dropped 0.25% ahead of the central bank’s loan prime rate decision on Tuesday. Last week, the central bank had cut some of its key lending rates.
However, Australia bucked the trend, with the S&P/ASX 200 rising by 0.6% and closing at 7,294.9. This increase was led by utilities and consumer services stocks.
On the diplomatic front, U.S. Secretary of State Antony Blinken is currently in Beijing on a diplomatic mission to repair strained ties between the U.S. and China.
In the U.S., the markets were closed on Monday for the Juneteenth holiday. Last week, all three major indexes ended the day lower after a strong showing earlier in the week. The U.S. Federal Reserve notably held rates after its recent FOMC meeting, breaking a streak of 10 straight increases.
Overall, the Asian markets showed mixed performance, with Japan experiencing a slight decline while Australia saw gains. The outcome of U.S.-China talks and the central bank’s loan prime rate decision in China will be closely watched in the coming
japan stock market index
Japanese Stocks Fall, Ending Six-Day Winning Streak
Tokyo, Japan – On Monday, Japanese stocks halted their six-day winning streak as the Nikkei 225 dropped by 1%. The decline was driven by consumer cyclicals, basic materials, and real estate stocks. The Topix also experienced a 0.43% decrease, although both indexes remained at levels unseen since 1990.
The Japanese yen remained stable after a period of weakening against the U.S. dollar. Last week, the Bank of Japan opted to keep its monetary policy unchanged, including ultra-low interest rates and its yield curve control scheme.
Meanwhile, the yield on the 10-year Japanese Government Bond slightly decreased and traded at 0.392%.
AstraZeneca Contemplates Spinning Off China Business Amid Political Tensions
Pharmaceutical company AstraZeneca is reportedly considering a plan to spin off its China business and list it in Hong Kong. The move comes amidst growing political tensions between China and foreign companies. A potential separate listing in Hong Kong or Shanghai could provide political insulation for the business and assist investors in reducing their exposure to China-related risks.
Luxury Gourmet Lifestyle Group Selects Singapore for Bacha Coffee’s Flagship Store
V3 Gourmet, the parent company of Bacha Coffee, has chosen Singapore as the location for its flagship store. CEO and President Taha Bouqdib stated that opening a store in Singapore would facilitate business in larger markets such as Malaysia, Indonesia, and China.
Asia Week Ahead: China Loan Prime Rates and Southeast Asia Central Banks
The week of June 19th holds significance for central banks in the region. The People’s Bank of China is set to announce its loan prime rate, and key policy meetings will take place in Southeast Asia. Additionally, inflation figures for Japan, Singapore, and Malaysia will be closely monitored.
Oil Prices Dip Amid Concerns About China’s Economic Recovery
Oil prices experienced a decline of over 1% due to concerns surrounding China’s economic recovery. Major banks have revised down their 2023 GDP forecasts for China, leading to a tempered economic rebound outlook. Brent crude futures dropped by 1.46% to $75.49 per barrel.
It’s disappointing to see the Asia-Pacific markets retreat, especially as Japanese stocks break their winning streak. Let’s hope this is just a temporary setback and that the region’s markets can bounce back soon.