Asian markets mixed as Xi solidifies leadership role in China

Asian markets mixed as Xi solidifies leadership role in China

Stocks rise in Tokyo, but are muted on Hong Kong and Shanghai

Shares were mixed in Asia on Friday after Wall Street benchmarks managed to close mostly higher.

In China, a major Communist Party meeting ended with a resolution setting the stage for President Xi Jinping to remain top leader for life. The decision was expected.

Party leaders praised Xi’s role in the country’s rise as an economic and strategic power, approving a political history that gives him status alongside the most important party figures such as Mao Zedong.

Although the Chinese economy has been slowing after bouncing back from a pandemic downturn, the record $139.1 billion spent by Chinese shoppers during this year’s annual Nov. 11 Singles’ Day shopping extravaganza suggested potential for resilient retail demand.

Hong Kong’s Hang Seng index HSI, +0.32% gained 0.2% while the Shanghai Composite index SHCOMP, +0.18% edged 0.1% higher.

In Tokyo, the Nikkei 225 NIK, +1.13% jumped 1%, while the Kospi 180721, +1.50% in South Korea added 1.4%. In Sydney, the S&P/ASX 200 XJO, +0.83% gained 0.8%. Benchmark indexes fell in Singapore STI, -0.30%, Indonesia JAKIDX, -0.60% and Malaysia FBMKLCI, +0.81%, while stocks gained in Taiwan Y9999, +0.38%.

The latest round of mostly solid corporate earnings is winding down after helping the broader market rise for weeks and reach a series of records. Inflation concerns have been rattling investors throughout the week, however.

Recent data paint “a picture of an economy running hot and with widespread price pressures,” Craig Erlam of Oanda said in a report.

“The Fed may ultimately prove to be correct in its judgement that pressures will ease naturally over time as they’re broadly driven by temporary factors,” he said. “But how long can they afford to stand by and watch inflation dramatically overshoot their target? Are they really that confident in their assessment? The pressure is intensifying.”

The benchmark S&P 500 SPX, 0.43% is on track for its first weekly loss in six weeks. On Thursday, it rose 0.1% to 4,629.27. The Dow Jones Industrial Average DJIA, 0.31% fell 0.4% to 35,921.23, largely due to a steep drop in entertainment company Walt Disney DIS, -1.22%, which slumped 7.1% after reporting slower subscriber gains at its streaming channel and weak fiscal fourth-quarter financial results.

Share:
error: Content is protected !!