11/09/2024 – 6:02
By André Marinho*
São Paulo, 09/11/2024 – Asian stock markets closed lower today, with Tokyo down more than 1% after a Bank of Japan (BoJ) official reinforced expectations for further monetary tightening and boosted the yen to its strongest level of the year against the dollar. Energy stocks faced strong pressure after oil plunged 4% the previous day.
BoJ Governor Junko Nakagawa reiterated the message that the institution is likely to raise rates again in the future, although she did not set a date for the next increase. “If the Bank’s economic and price outlook materializes, with the target of price stability and inflation at 2%, the degree of monetary easing will be adjusted,” she said.
The comments boosted the Japanese currency, in a move that is putting pressure on major exporters. In Tokyo, shares of Mitsubishi Heavy Industries and Toyota fell more than 3%. As a result, the Nikkei index closed trading down 1.49%, at 35,619.77 points.
In China, the Shanghai Composite Index fell 0.82% to 2,721.80 points, while the less comprehensive Shenzhen Composite Index fell 0.05% to 1,499.53 points. In Hong Kong, the Hang Seng Index fell 0.73% to 17,108.71 points. Oil companies PetroChina (-1.40%) and CNOOK (-2.30%) were penalized by the sharp losses in the commodity yesterday.
Investors are also keeping an eye on the uncertainties surrounding the US economy and the evolution of the Federal Reserve’s (Fed) monetary policy. The US consumer price index (CPI) is expected to be released this morning, which should guide bets on the US central bank’s decision next week.
In this environment, the Taiex index, a benchmark in Taiwan, lost 0.16%, to 21,031.00 points. In South Korea, the Kospi fell 0.40%, to 2,513.37 points. Samsung Electronics fell 1.96%, after Nomura cut its operating profit forecast for the third quarter. On the other hand, battery maker Samsung SDI soared 9.91%, after announcing a divestment plan to focus on its core businesses.
In Oceania, the S&P/ASX 200 fell 0.30% to 7,987.90 points in Sydney. Woodside Energy fell 2.21%. On the other hand, companies linked to lithium production saw solid gains after a Citi report revealed that Chinese electric vehicle battery maker Contemporary Amperex Technology (CATL) is considering suspending some mining operations for the metal. Thus, Mineral Resources soared 15.95% and Liontown Resources rose 13.11%.
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*With information from Dow Jones Newswires
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