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03.02.2023 02:18 PM
Asian stock indices show mixed performance

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The main Asian indicators are trading mixed today. Thus, the Chinese Shanghai Composite and Shenzhen Composite indices were down quite significantly by 1.37% and 1.43% respectively. The Hong Kong Hang Seng Index dropped by 1.78%. At the same time, other indices gained. The Japanese Nikkei 225 index added 0.36%, the Korean KOSPI soared by 0.53%, and the Australian S&P/ASX 200 index increased by 0.65%.

Such mixed performance is influenced by a number of factors. First, investors continue to analyze the results of this year's first US Federal Reserve meeting. The US regulator decided to increase the interest rate by 25 basis points to 4.5-4.75%.

The US employment data is also expected to be released. Job growth is projected to decline, although the overall labor market remains solid. Some of the major technology companies have reported planned layoffs but this has not become widespread.

According to the latest report from the Labor Department, the number of citizens applying for unemployment benefits in the US dropped by 3,000 to 183,000 last week. This figure is at its lowest level in nearly a year.

Second, according to the latest statistics from China, the country's business activity indicator for services rose to 52.9 points last month, up from 48 points in December. The composite PMI also rose to 51.1 points in January from 48.3 points in December. The value of this index above 50 points indicates an increase in business activity.

A significant decline in the Hong Kong Hang Seng Index was contributed by a drop in the value of its constituents. Notably, Country Garden Services Holdings, Co. Ltd. plummeted by 6.8%, Baidu, Inc. and Country Garden Holdings, Co. Ltd. dropped by 4.6% and 4.5%, respectively, JD.com, Inc. declined by 2.7%, Xiaomi, Corp. slid by 1.3%, and Netease, Inc. lost 0.3%.

Japan's Nikkei 225 index was boosted by an increase in Z Holdings, Corp. and NTN, Corp. securities, which gained 12.9% and 12.2%, respectively.

Shares of Sony Group, Corp. rose by 5.4% despite a decline in net profit in the third quarter of fiscal 2022, although the figure exceeded experts' estimates.

The growth of Korean KOSPI was triggered by the increase in the share price of Hyundai Motor by 2.4%, as well as Samsung Electronics by 0.5%.

The companies of the Australian S&P/ASX 200 index showed mixed performance. Treasury Wine Estates gained 1.9%, while Rio Tinto and BHP were down 2% and 1.9% respectively.

Anastasia Kravtsova,
Analytical expert of InstaForex
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