Asian Stocks Trade Mixed – Japan Rallies, China Falls

Major Asian indexes traded mixed today, with the Nikkei climbing 459 points (2.69%), still enjoying the uptick from the BoJ’s decision that it will maintain stimulus and apply a negative interest rate policy.

Japan Tobacco (TYO:2914) gained 3.7%, Sony gained 12.4%, while NTT Domoco (TYO:9437) lead the gains with a massive 14.5% surge upwards.

In China the SHCOMP traded down for the day, closing 1.77% lower. Chinese manufacturing data released for January was the lowest it has been for 3 years, further underlining the slowdown which sparked a mass global sell-off across global stock markets at the start of the year.

In Hong Kong, the HSI was trading 0.5% lower in late afternoon trading, with Petrochina (HKG:857) losing 3.6% and China Life Insurance losing 3.4%, showing that firms with exposure to China continue to suffer on weak China data releases.

With China data coming out weak yet again, expect markets in Europe and the US to respond in turn. While it can be said that the volatile sell-offs we witnessed at the start of the year are over for now as markets adjust to a ‘new normal’ with regards China, you can still expect to see relatively flat or negative trading as investors factor in the cost of yet more negative signs coming from China.

The following two tabs change content below.

Daniel Simmons