Japan shares see best day in six weeks as most APAC markets rebound
07:00, 23 August 2021
Japan shares was on track for its best day in six weeks on broad-based gains, while Hong Kong shares rose as healthcare stocks rebounded sharply on Monday.
Japanese benchmark Nikkei 225 index gained 1.9% to 27,516.03 points to recover from near eight-month low on Monday as all sector subindices tracking 33 sectors across the island rose.
The Topix-17 Automobile & Transport Equipment subindex led gains on Monday rebounding 3%. The subindex had slumped over 6% last week after Toyota Motor announced production cuts related to semiconductor supply chain constraints.
Jackson Hole conference on the horizon
Investors go into the week with an eye for any clues they can get from US Federal Reserves’ (Fed) Jackson Hole conference, which starts on Thursday, on the interest rate tapering outlook.
“Investors will be locked on to the event for any clues to the timing and pace of the taper as well as the eventual Fed rate hike,” ING said.
“For Asia equities, we do not think that the timing of the announcement matters much as tapering appears to us almost certain (barring significant negative data surprises ahead due to the spread of the Delta variant),” Nomura said in an analyst note. “The focus for markets from here will be the pace of reduction of asset purchases which we think will continue to be determined by economic data.”
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HK and China shares up
On Monday, Hong Kong and Mainland China shares rebounded from last week’s heavy losses as China deepened its crackdown on tech firms.
Chinese healthcare stocks led gains with Wuxi Biologics Cayman and Alibaba Health Information technology emerging as the top percentage gainers on Hong Kong’s Hang Seng index which rose 1.4%.
China’s blue-chip CSI 300 index gained 1.3% after the nation reported no new COVID-19 cases on Monday for the first time since July.
Aussie benchmark snaps five-day losing streak
Meanwhile, Australia’s benchmark Standard & Poor's/Australian Securities Exchange 200 index snapped a five-day losing streak to inch 0.3% higher on Monday after the country’s prime minister called for easing of strict coronavirus restrictions as vaccination rates increase.
Electricity distributor Spark Infrastructure advanced 2.2% on Monday after the company said it accepted a $3.7bn takeover bid from a KKR-led consortium.
Fuel retailer Ampol dropped 4.8% on Monday after the company made an offer to acquire New Zealand counterpart Z Energy as part of a bid to create a trans-Tasman fuel retailer.
LG Chem plunges over 10%
Elsewhere, South Korea’s Korea Composite Stock Price Index rose over 1% as index heavyweights Samsung Electronics and SK hynix pulled the benchmark higher on Monday.
Shares in battery manufacturer LG Chem plunged over 10% to hit a near three-month low on Monday.
US-based automaker General Motors on Friday said it will seek reimbursement from the South Korean battery supplier after it was forced to recall its Chevrolet Bolt electric vehicles due to manufacturing defects in the battery cell.
Vietnam down, Thailand and Taiwan up
In Southeast Asia, Vietnam’s HOSE index fell 2% to hover above the 1,300 points level on Monday after the army was deployed on the streets of Ho Chi Minh City to enforce a lockdown.
Thailand’s SET 50 index climbed 1.4% to hit an over one-month high after the country’s exports rose higher than expected in July.
Taiwan’s TAIEX index tracked Wall Street’s Friday gains to jump 2.5% on Monday.
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