Asian stock markets buoyant as commodity prices ease

Asian stocks were broadly higher on Friday, with South Korea enjoying the biggest daily jump in 16 months, and markets in China, Japan, India and Australia all posting small gains.

Chinese stocks closed Friday at their highest level since early March, gaining for a fourth consecutive week, as the country stepped up efforts to stimulate a Covid-hit economy with an injection of fresh capital into the banking system to maintain liquidity. steady.

The blue-chip CSI300 index rose 1.2% to 4,394.77, while the Shanghai Composite index gained 0.9% to 3,349.75 points and the Hang Seng index climbed 2 .1% to 21,719.06.

The People’s Bank of China injected 60 billion yuan ($8.96 billion) in seven-day reverse repos as demand for cash for the end of the first half of the year began to rise.

Global stock markets rose as commodities, including copper and oil, fell, providing relief to inflation fears.

Refinitiv the data showed strong inflows of foreign investors, totaling more than 13.1 billion yuan ($1.96 billion) through the North Branch of Stock Connect.

Chinese battery giant CATL jumped nearly 5% on news it will begin mass production next year of its next-generation product, with greater efficiency that allows electric cars to travel longer distances on each charge.

New energy companies gained 2.2%, while defense and tourism shares rose more than 3% each.

Hong Kong-listed tech giants rose 4.1%, with e-commerce giant Alibaba up 5.5% amid signs China’s tech crackdown is easing.

Tech helps Japanese stocks rise

Japanese equities also rose, with tech stocks leading the gain after strong overnight gains on Wall Street, while sentiment was helped by accommodative monetary policy from the national central bank.

The Nikkei stock average rose 1.23% to 26,491.97, accelerating gains after US futures rose. The index posted a weekly gain of 2.04%, but has fallen 2.89% so far this month.

The broader Topix rose 0.81% to 1,866.72 and marked a weekly gain of 1.68%.

Overnight, Wall Street’s major indexes posted solid gains, fueled by a strong performance in defensive and technology stocks that offset declines in economically sensitive groups as worries lingered about a possible recession.

Chip-making equipment maker Tokyo Electron rose 3.98% and provided the biggest boost to the Nikkei. Technology investor SoftBank Group rose 2.37% and air conditioner maker Daikin Industries climbed 3.44%.

Automakers fell, with Mitsubishi Motors losing nearly 8% to become the worst performer in the Nikkei.

Toyota Motor and Subaru fell 0.71% and 2.89%, respectively, after the two automakers announced recalls of their first mass-produced electric vehicles for the global market.

The KOSPI jumped 2.26%

South Korean stocks trailed gains on Wall Street after investors lowered expectations for inflation and higher interest rates, although the benchmark index posted a third consecutive weekly decline.

The benchmark KOSPI rose 52.28 points, or 2.26%, to 2,366.60 at 0632 GMT, the biggest daily jump since February 2021.

Among the heavyweights, messaging platform operator Kakao jumped 6.6%, Naver gained 5.8%, tech giant Samsung Electronics rose 1.74% and peer SK Hynix rose. 1.55%, while battery maker LG Energy Solution edged up 1.25%.

Indian stocks rebound

Meanwhile, Indian stocks scored their first weekly gain in three on Friday, driven by strong gains in automakers and financials, as a drop in commodity prices offered respite from widening stocks. inflationary pressures.

The NSE Nifty 50 index closed 0.92% higher at 15,699.25, while the S&P BSE Sensex climbed 0.88% to 52,727.98. Both indexes posted weekly gains of 2.7%.

“The recent price correction in several commodities, especially industrial metals, brings some light at the end of the tunnel with the hope that some of the inflationary pressures are easing,” said Milind Muchhala, chief executive of Julius Baer. India.

Copper prices, an indicator of economic output with its wide range of industrial and construction uses, are heading for their worst week in a year.

The Nifty and Sensex had fallen for two straight weeks on fears of central bank aggression amid soaring inflation.

Australian stocks also rose on tech gains

Gains in tech stocks helped Australia’s main index end the week on a positive note, although worries about a recession weighed on the energy and mining sectors.

The S&P/ASX 200 index closed 0.77% higher at 6,578.7 on Friday and was up 1.61% for the week, its biggest weekly gain in more than three months.

Stock markets around the world have been skewed in recent sessions as investors wonder if equity valuations have bottomed following a strong sell-off driven by fears of an economic slowdown.

“I think the market is well and truly oversold at this point and selling is now nearing exhaustion,” said Brad Smoling, managing director of Smoling Stockbroking.

“I suspect bargain hunters may be starting to nibble. It’s hard to say if that’s the bottom.

Tech stocks rose 6%, mirroring gains from their Wall Street counterparts, which were supported by a decline in benchmark U.S. Treasury yields.

Shares of Buy Now, Pay Later Zip Co soared 21.6% and were among the top gainers on the ASX 200, while those of ASX-listed rival Block Inc climbed a close margin by 11%.

Gold stocks rose 0.23% even as bullion prices headed for their second consecutive week of declines.

Oil rose more than $1 a barrel on Friday, supported by tight supply, although crude was heading for a second weekly decline on fears that rising interest rates could push the global economy into recession.

Brent crude rose $1.42, or 1.3%, to $111.47 a barrel at 0952 GMT, while US West Texas Intermediate crude gained $1.29, or 1.2% , at $105.56. Both benchmarks were heading for a second weekly decline.

• Reuters with additional editing by Jim Pollard

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd newspapers in Sydney, Perth, London and Melbourne before touring South East Asia in the late 1990s. leader of The Nation for over 17 years and has a family in Bangkok.

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