On Monday, Asian equities tacked on after a week-long sell-off in bonds and shares because market participants are waiting for American CPI data a bit later this week just to learn whether another bout of fluctuations is in store or not. The CPI is anticipated to slow to about 1.9%, although anything higher this reading would potentially spur risks of more aggressive rate lifts that was widely considered to be the catalyst of the rout worldwide in the first place.
China and Hong Kong found themselves in focus today because Japan’s Nikkei wasn’t available due to National Foundation Day holiday, although fluctuations are supposed to low enough prior to the Chinese New Year Holiday. Additionally, Hang Seng Index acquired 0.7%, airline and medical equities among the outperformers. Additionally, Shenzhen Component along with Shanghai Composite managed to grow 2.7% and 0.7% respectively. Meanwhile, Hong Kong-listed Geely Automobile Holdings informed that its parent Zhejiang Geely would be building another new energy vehicles factory in China. The project is reportedly worth $5 billion.
In spite of the fact it’s not a directional driver at all, China’s National Development and Reform Commission gained some attention just because it rolled out an impressive list of sensitive sectors, such as hotels, real estates and entertainment. These are areas where it’s planning to have outbound investment restricted.
Some rumors point out that in Japan Haruhiko Kuroda might enjoy reappointment as Bank of Japan Governor to next five-year term. It’s because Prime Minister Shinzo Abe would like to see hawkish stimulus as well as strengthening inflation. At the same time Takata, automotive parts producer made headlines right after it made an American bankruptcy deal with its lawyers and creditors and it’s going to have its viable operations sold. Up to 21 deaths were reportedly associated with Takata’s air bags.