Asia report: Stocks fall as Covid in China still dominates
By Josh White
Date: Friday 02 Dec 2022
(Sharecast News) - Stock markets were in the red across the Asia-Pacific region on Friday, after China signalled an easing of its strict Covid-19 rules was in the pipeline without providing much clarity.
In Japan, the Nikkei 225 was down 1.59% at 27,777.90, as the yen strengthened 0.94% on the dollar to last trade at JPY 134.06.
Technology conglomerate SoftBank Group was up 0.13%, while automation specialist Fanuc was down 1.26% and fashion firm Fast Retailing lost 1.72%.
The broader Topix index was 1.64% weaker by the end of trading in Tokyo, settling at 1,953.98.
On the mainland, the Shanghai Composite was off 0.29% at 3,156.14, and the technology-heavy Shenzhen Component was 0.39% lower at 11,219.79.
South Korea's Kospi slid 1.84% to 2,434.33, while the Hang Seng Index in Hong Kong was down 0.33% at 18,765.35.
Consumer inflation came in weaker than expected in Korea in November, with prices rising 5% year-on-year, compared to the 5.1% economists polled by Reuters had pencilled in.
The consumer price index rose 5.7% on the year in October, having reached its all-time high of 6.3% in July.
Seoul's blue-chip technology stocks were well below the waterline, with Samsung Electronics down 3.51% and SK Hynix losing 3.31%.
"Asian markets were mixed, with the Covid-19 situation in China continuing to dominate sentiment," said Interactive Investor head of markets Richard Hunter.
"A further rise in cases was partly offset by the expectation that the country will be easing some of its zero-tolerance protocols in the coming days, possibly influenced by the widespread protests so far."
Hunter said investors were "increasingly impatient" to see the shackles being loosened on an economy which had suffered in recent months.
"Hopes of some stimulus from the authorities remain in the background, but in the meantime growth prospects and indeed consumer confidence have been blighted by curbs which have shackled any ability for the economy to recover naturally."
Oil prices were higher as the region entered the weekend, with Brent crude futures last up 0.6% on ICE at $87.40 per barrel, and the NYMEX quote for West Texas Intermediate rising 0.7% to $81.79.
In Australia, the S&P/ASX 200 was down 0.72% at 7,301.50, while across the Tasman Sea, New Zealand's S&P/NZX 50 slipped 0.11% to 11,461.85.
Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.1% at AUD 1.4667, and the Kiwi advancing 0.62% to NZD 1.5619.
Reporting by Josh White for Sharecast.com.
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