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25.02.2022 02:21 PM
Asia-Pacific stock indices mostly up

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Asia-Pacific stock indices were mostly up in Friday's trading session as part of a correction after yesterday's significant decline. The Shanghai Composite added 0.54% and the Shenzhen Composite gained 1.02%, while Hong Kong's Hang Seng Index was down by 0.1%. The Korean KOSPI rose by 1.11%, the Japanese Nikkei 225 gained 1.66% and the Australian S&P/ASX 200 added 0.12%.

During Thursday's trading the main indices of the Asian region showed a significant decline (by 1.5-3.2%). The US and European stock indices also dropped in the course of trading. This happened as a result of the deployment of Russian troops on the territory of Ukraine, namely in the DNR and LNR, which the Russian president had recognized as independent the day before. This Russian special operation was condemned by European countries, the US and other states, which imposed a number of sanctions against the Russian Federation.

Nevertheless, US indicators ended yesterday's trading with positive dynamics. For instance, the tech-heavy NASDAQ added 3%, which in turn supported Asian indicators.

According to experts, this sharp turn in investor sentiment is due to the fact that due to the worsening global political situation, the US Federal Reserve will not sharply tighten monetary policy, in particular they will not raise rates.

In the meantime, the Chinese central bank is striving to support the national economy. In order to preserve liquidity 760 billion renminbi were injected during the current week, almost half of that amount in one day. It is a record for the past two years. The regulator also kept the interest rate at 2.1%.

However, the country's shares are down. PetroChina Co., Ltd. fell by 3.5%, China Resources Land, Ltd. dropped by 3.2% and HSBC Holdings PLC declined by 3.1%.

In Japan the stock market selling, which had been going on all week, came to an end today. Following the rise in US indicators, the Japanese tech sector also showed an increase.

Among the Nikkei 225 components, Advantest Corp. gained 7.2%, Kawasaki Kisen Kaisha Ltd. climbed by 7.1% and SCREEN Holdings Co, Ltd. added 5.7%. Toyota Motor Corp. also showed a slight increase by 0.7%., while shares of Honda Motor Co. lost 0.1%.

KOSPI's gains boosted the price of shares of such companies as Samsung Electronics Co, Ltd. (+0.8%), Hyundai Motor Co. (+0.8%) and Kia Corp. (+0,8%).

Despite a slight rise in the Australian S&P/ASX 200, BHP shares were down by 0.2% and Rio Tinto fell by 0.6%.

Anastasia Kravtsova,
Analytical expert of InstaForex
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