Japanese Stocks Drop on Weak Tech Shares

Japanese shares fell on Friday, driven by tech stocks and caution ahead of U.S. inflation data. However, their first weekly increase of all three was recorded due to the easing of concerns about the pace of economic recovery of the coronavirus variant of Omicron. The Nikkei average fell to 28,437.77, down 1%, though it rose 1.46% in three weeks. Topix fell to 1975.48 and lost 0.77%. However, it increased by 0.9% during the week.

Based on Masahiro Ichikawa, chief market strategist, growth in stocks and technology were consumed by Nasdaq’s weak end overnight. Wall Street ended at a low level overnight. Investors booked some profit after three days of gains. The Nasdaq dropped more strongly than the S&P 500. As for the Dow, it has remained virtually unchanged.

Ichikawa says investors have difficulty betting on US CPI data tonight and at the FOMC meeting next week. The higher-than-expected CPI will reinforce the decision to tighten policy at a meeting of the U.S. Federal Reserve next week. Stocks related to chips fell. Tokyo Electron and Advantest lost 1.26% and 1.75%, respectively. Medical Terumo fell 2.28%, while Bandai Namco Holdings lost a total of 2.93%. Recruit Holdings fell the most to the Nikkei, up 5.45% overall. This was the biggest failure in the index.

Hitachi increased 2.17% as the conglomerate studied selling its pale in Hitachi Transport System. Hitachi Transport increased by 7.69% in total. The Nikkei Index was up 52 points, down 168 points. The Mothers Index of start-up firms lost 2.27%.

Asian Shares Retreat – China

The Chinese Blue Chips locked on Friday after their head level was reported for further than four months in the earlier session. After November, some investors made a profit, and credit data exceeded analysts’ expectations. The CSI300 index fell 0.5% to 5055.12. The Shanghai Composite Index hit 3666.35 points and lost 0.2% in total.

During the week, the CSI300 index grew 3.1%; the Shanghai Composite Index increased 1.6%. They both had the best week in three months. New bank lending in China increased less than expected in November than the earlier month, even as the central bank explores to facilitate gain in the world’s second-largest economy.

Weaker credit data and money than expected indicate that credit demand remains weak amid the current slowdown in growth. According to the latest report, China saw a record weekly inflow of foreign currency into the stock market through Stock Connect schemes, amounting to 73.35 billion.

Concerns about ADR scrapping in the real estate market are affecting sentiments. However, A-shares are more secure; Are not subject to ADRs, and respond more positively to RRR reductions. Real estate developers fell 1.7%. Coal miners and brokers lost 1.5%. NEV increased by 1.2%. The company’s sales reached 450,000 units in November and grew by 121% amid efforts to reduce pollution in China.

Investors were particularly concerned about China’s real estate debt. Following a report by Fitch Ratings, the two Chinese real estate businesses owed $1.6 billion in debt to foreign creditors.

Evergrande Stocks – Future Hopes

Evergrande’s status was downgraded to a limited default rating after the company first completed more than $1.2 billion in bond debt. Analyst Jeffrey Halley says developers with higher leverage in China face considerable debt restructuring. This leads to the expectation that development may slow next year. Things about the coronavirus are a case that has not been removed from investors’ minds. The threat of stricter restrictions as a result of Omicron lowers risk attempts. Despite weekly unemployment claims falling to 184,000, a 52-year low.

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