Nikkei’s 8-Day Losing Streak Ends As Hang Seng Rises On US Growth Hopes; China Enhances Support for Innovative Tech Firms

In today’s trading session, Asian stocks largely rebounded following their worst session in three months, buoyed by renewed hopes for US growth and stabilization of Japan’s yen after a turbulent few days.

Most indexes closed in positive territory, except for Taiwan, which reopened after a two-day closure to a typhoon and fell by 3.9%. The tech-heavy equity index in Taiwan caught up with the global market downturn. 

However, Japan was another outlier, reversing early gains to extend its losing streak to eight sessions. Investors adjusted their positions amid uncertainties regarding Wall Street after a volatile session. 

Nikkei 225 dropped by 0.53% closing at 37,667.41, marking its lowest close since April 25, despite an earlier rise of up to 0.6% as investors picked up undervalued stocks. Over the week, the index fell 5.48%, its worst performance since mid-April.

Market caution was evident ahead of the Bank of Japan’s policy decision next week, with growing expectations of a possible rate hike by the central bank. 

China’s stock markets, on the other hand, remained subdued due to concerns over a sluggish economic recovery and the lack of substantial stimulus measures. Investor sentiment also decreased due to global market weakness. 

The Shanghai Composite Index rose to 0.14% closing at 2,890.90, while the Shenzhen Composite Index on China’s second exchange went up by 1.43% closing at 1,569.59.

Today, China’s finance ministry announced that it will boost support for small and medium-sized technology enterprises via its national financing guarantee fund, aiming to channel more funds into the technology and innovation sector. Meanwhile, Beijing is focused on achieving technological self-reliance and promoting innovation in critical industries.

The Hang Seng index went up by 0.10% closing at 17,021.31.