Asian stock indices are trading mixed. Some indicators show slight declines. The Hong Kong Hang Seng index decreased by 0.74%. The Chinese Shanghai Composite index and Shenzhen Composite lost 0.82% and 0.63% respectively. At the same time, other indices showed better performance. The Australian S&P/ASX 200 index gained 0.36%, the Korean KOSPI added 1.04%, and the Japanese Nikkei 225 index soared by 1.27%.
Such different trends are due to market instability. Despite investors' optimism and hope for the best, according to experts, it is necessary to prepare for the worst, as consumer price growth continues to increase, even slowing down a little. Nevertheless, analysts believe that the US still has a chance to avoid an economic downturn. In addition, investors are interested in the interim results of the US Congress elections and the latest statistics on price growth, which may have an impact on the Fed monetary policy.
The Chinese stock exchanges observed negative sentiment due to the announcement that the authorities intend to continue the zero-COVID policy, which may severely damage the country's economy.
Among the components of the Hong Kong Hang Seng Index, Haidilao International Holding, Ltd. declined by 4.5%, Baidu and Meituan dropped by 3.5% and 3% respectively, Budweiser Brewing, Co. APAC Ltd. lost 3.3%, as well as Alibaba Group and BYD plummeted by 3.2% and 2.6% respectively.
The Japanese indicator was supported by the positive results of corporate reporting. Yamaha Motor, Co. rose by 23% to 1.677 trillion yen in revenue and 13% in operating income to 184.19 billion yen on higher prices and sales of motorcycles and boat engines, which jumped by 12.7%.
Shimadzu, Corp. earned a net profit of 24.5 billion yen in the first six months of this fiscal year, compared with 20.49 billion yen in the same period last year, increasing its share price by 6%.
Also among the companies included in the Nikkei 225 index, SoftBank Group gained 5.2%, Sony Group added 3.4%, Nintendo jumped by 1.6% as well as Fast Retailing and Toyota Motor gained 0.1% and 0.6% respectively.
The growth of the Australian indicator was due to an increase in the value of securities of the largest banks in the country. Westpac Banking shares rose by 2%, Commonwealth Bank rose by 1.4%, while ANZ Bank and National Australia Bank gained 0.3% and 0.7% respectively. The price of BHP shares fell insignificantly (by 0.3%).
Companies included in the Korean KOSPI showed mixed results. Samsung Electronics, Co. increased by 2.5%, while Hyundai Motor's declined by 0.3%.
