Asian stocks tread with caution; Japan’s Nikkei slips while the Shanghai Stock Exchange gains

The Financial markets of China and Japan portrayed a different story. On the one hand, China is more optimistic regarding recovery from the pandemic. While on the other hand, Japan seems to be more patient and is keen to combat the Coronavirus situation and ensure the safety of its citizens.

Wuhan’s lockdown gets lifted after 76 days

China finally lifted its lockdown from its city of Wuhan after 76 days. Wuhan is the origination point of the COVID-19 virus. After ensuring that Wuhan reported no new cases over several days, the Chinese Government decided to remove the lockdown. The residents of Wuhan are finally able to get out of their homes

  • The Shanghai Stock Exchange reflected the positive investor sentiments as it rose by a modest 10.54 points. Investors are still treading with caution. It will undoubtedly take some time before the economy starts recovering.

 

Stocks in focus in the Shanghai Stock Exchange:

  1. The China United Network Comm is the most actively traded stock. It rose by 3.37%.
  2. FMCG sector took a good beating with Whirlpool China losing almost 10%

 

Japan’s Nikkei seems to be more cynical regarding the peaking of the pandemic just yet

  • Despite the incredible rise of Wall Street for three consecutive days, investors in Japan seemed unmoved.
  • Tokyo’s benchmark Nikkei Index slipped by 0.04%. This is not a huge fall; however, there has been no significant upside, either.
  • Many analysts hold the view that it might be too early to predict a peak-out of the pandemic.
  • Japan recorded its highest single-day rise in new cases of COVID-19 on Wednesday.

 

The benchmark Nikkei 225 Index was at 19345.55 at the point of publication of this article.  

Japan painted a slightly different picture from China in terms of profitable sectors. Automobile and Engineering sectors shone in the Nikkei 225 Index.

  • Suzuki Motor Corp. turned out to be the biggest gainer and rising almost 7.60%.
  • Mitsui Engineering and Shipbuilding rose by 5.58%.
ADVERTISEMENT

Leave a reply

Please enter your comment!
Please enter your name here