Asian stock markets were mixed on Friday after demonstrating strong gains over the past 2 days. The Shanghai Composite and the Shenzhen Composite lost 0.22% and 0.52% respectively, while the Hang Seng Index decreased by 2.17% after rising throughout the day. In Australia, the S&P/ASX 200 gained 0.36%. The Nikkei 225 and KOSPI added 0.34% and 0.1% respectively. Optimism in the market faded as several new outbreaks of COVID-19 were reported. Investors are wary of new quarantine measures that could severely affect economic growth in March and April.
Furthermore, the ongoing war between Russia and Ukraine remains in focus of the international community. Today, US president Joe Biden spoke with Chinese president Xi Jinping, with the situation in Ukraine being on the agenda. The central bank of Japan has left the interest rate unchanged at -0.1%, with the yield of 10-year bonds remaining at zero. Furthermore, the bond-buying program will continue. According to the regulator, the decline of the COVID-19 pandemic and the easing of related restrictions, as well as rising exports are expected to improve the economic situation. Thanks to the central bank's policy, the state of the Japanese economy is somewhat stronger compared to other countries in the Asia-Pacific region.
Japan's consumer prices rose by 0.9% over the year in February, up from 0.5% in January. The CPI reached the highest level over the past 3 years. On the Nikkei 225, the best performing stocks were Pacific Metals Co., Ltd. and Toho Zinc Co., Ltd., which gained 8%, as well as SoftBank Group Corp., which added 3%. Chinese indexes rose significantly after the government signaled it would enact measures to help markets run smoothly and ensure financial and economic stability. Investors also welcomed talks between US and Chinese governments on accounting oversight of US-listed Chinese companies.
Today, major Chinese online commerce companies, such as Meituan, JD.com Inc., NetEase Inc., and Alibaba Group Holding, Ltd. lost 6-8%. Shares of CNOOC, Ltd. gained 3%, while PetroChina Co., Ltd. added 2% thanks to rising oil prices. On the KOSPI, LG Corp. led the upside, gaining 1.5%. Hyundai Motor Co., Ltd. increased by 1%, while Kia Corp. fell by 0.1%. On the S&P/ASX 200, the best performing stocks were Fortescue Metals Group, Ltd. (+2.2%), Rio Tinto, Ltd. (+1.6%), and BHP Group, Ltd. (+1.3%). Shares of Megaport, Ltd. lost 8% after its founder sold 1.9% of his 5.1% stake in the company.
