Major Asian stock markets continued to rally on Friday. Inflation eased in the US, fueling hopes that the Federal Reserve will soon stop raising interest rates. US producer prices on Thursday also rose less than expected in June. Earlier this week, consumer prices in the world’s largest economy showed a stronger-than-expected cooling. The result has eased fears that the central bank could trigger a recession with its long streak of rate hikes to fight inflation.
July 14, 2023
Tokyo’s Nikkei rose 0.2 percent just before the close. Japanese shipping giant Kawasaki Kisen rose more than 4 percent as recession fears eased. Chip tester Advantest was one of the strongest risers with a gain of 5.7 percent. Fast-retail sales fell 1.6 percent, despite the owner of clothing chain Uniqlo raising its full-year profit forecast.
Nissan fell more than 2 percent. According to media reports, the Japanese carmaker will invest 100 billion yen (about 645 million euros) in Ampere. It would give Nissan less than a 10 percent stake in collaboration partner Renault’s electric car arm. Investors expected the Japanese to take a 15 percent stake in the unit, which Renault plans to take to the stock market at an undisclosed time.
Hong Kong and Shanghai’s Hang Seng index rose 0.3 percent. Liu Guoqiang, deputy governor of China’s central bank, reiterated that the central bank will use all its tools to accelerate economic recovery. The Kospi in Seoul was the strongest riser in the region with a 1.1 percent gain. This was mainly due to strong gains by major South Korean chip giants Samsung (1.7 percent) and SK Hynix (3.2 percent).
All Ordinaries in Sydney rose 0.8 percent after the announcement of the successor to Reserve Bank of Australia governor Philip Lowe. Lowe will succeed Michael Bullock, the current lieutenant governor, in August.
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