Investors in Japan are enjoying a one-month high.
(Photo: dpa)
Frankfurt, Tokyo Japan’s Nikkei stock index hit a one-month high on Monday. In the parliamentary elections over the weekend, the ruling party LDP of the Japanese Prime Minister Kishida managed to maintain its majority. Investors reacted to the prospect of stable government and other fiscal stimulus. “The market was spurred on by the positive surprise that the LDP won the majority in the elections. Investors now have more confidence in the party’s stable, long-term government, ”said Kentaro Hayashi, senior strategist at Daiwa Securities.
The Tokyo stock exchange initially showed itself stronger on Monday. The Nikkei index, which comprises 225 values, was 2.3 percent higher at 29,557 points. The broader Topix index rose 1.6 percent to stand at 2033 points. The stock exchange in Shanghai was 0.1 percent in the plus. The index of the most important companies in Shanghai and Shenzen lost 0.2 percent.
In Asian foreign exchange trading, the dollar gained 0.2 percent to 114.17 yen and stagnated at 6.4040 yuan. In relation to the Swiss currency, it was quoted 0.1 percent higher at 0.9166 francs. At the same time, the euro fell 0.1 percent to 1.1551 dollars and rose 0.1 percent to 1.0588 francs. The pound sterling lost 0.1 percent to $ 1.3678.
China’s manufacturing sector bounced back in October
China’s industrial activity grew faster in October than it had done in four months. This was helped by stronger demand, but energy shortages and rising costs weighed on production, a company survey on Monday found. The Caixin / Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 50.6 in October – its highest level since June. Analysts polled by Reuters had expected the index to remain unchanged from September at 50.0. The 50 mark separates growth and contraction on a monthly basis.
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“The manufacturing sector recovered slightly in October compared to the previous month. However, downward pressure on economic growth persisted, ”said Wang Zhe, senior economist at Caixin Insight Group. Supply bottlenecks, rising raw material prices and power supply problems have led to severe restrictions for manufacturers and interrupted the supply chains.
The Caixin survey, which focuses on smaller, export-oriented companies in the coastal regions, showed an increase in domestic demand. But foreign demand has remained sluggish as the pandemic continues to rage in many countries. The incoming orders sub-index rose to 51.4 from 50.8 in September, while new export orders fell for the third month in a row.
According to a Reuters poll, economic growth in China will weaken from an expected growth of 8.2% this year to 5.5% in 2022. In the first three quarters of 2021, the economy grew by 9.8% compared to the previous year.
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