Asian Stocks Fall After Six-Day Streak of Gains – Asia Market Wrap
January 26, 2024
Asian stocks fell on Friday as optimism over China’s rescue plans faded and investors scrutinised Intel’s disappointing earnings.
Shares in mainland China and Hong Kong fell following the largest three-day surge since 2022. Morgan Stanley reduced its targets for major Chinese market indexes, citing debt, demographics, and deflation as barriers to continued equities growth.
“China’s drag risks – economic, financial, and currency – certainly factor in,” wrote Vishnu Varathan, chief economist for Asia ex-Japan at Mizuho, in an email on Friday.
Japan’s Nikkei market sank by nearly 1.5%, while Korea’s benchmark gauge rose. US share futures fell Friday after Intel issued a poor estimate, while European stocks rose.
Inflation in Tokyo fell below 2% for the first time in more than a year and a half, a sharper-than-expected slowdown. The latest Bank of Japan minutes, issued on Friday, revealed that board members are debating the strength of price increases and the timing of a widely anticipated interest rate hike.
