A person walks in front of an electronic stock board showing Japan’s Nikkei 225 index at a securities firm on Jan. 22, 2024, in Tokyo.
| Photo Credit: AP
Asian shares rose on January 24 on optimism that Chinese authorities will offer support for its stock markets, which have plummeted to multi-year lows, while a hawkish tilt from the Bank of Japan lifted the yen.
The MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.27% higher. Still, the index is down 5% in January, set for its worst monthly performance since August.
Japan’s Nikkei was 0.68% lower, a day after hitting a fresh 34-year high, and the yen strengthened as traders took note of the Bank of Japan’s hawkish tilt on January 23.
The focus in Asia has squarely been on Chinese equity markets after a wretched start to the year. A report on January 23 said that authorities were preparing a package of measures worth $278 billion to stabilise the market offering some hope the markets may steady though investors remained sceptical and unimpressed.
On January 23, Chinese stocks were mixed. The blue-chip index was 0.4% lower, rooted near the five-year lows, while the Shanghai Composite rose 0.11% higher. Hong Kong’s Hang Seng index spiked 1.5% higher but is down 8% in January.
Hong Kong stocks were also boosted by Alibaba Group shares, which gained 6% after a report said co-founder Jack Ma and Chairman Joe Tsai bought millions worth of shares in the Chinese e-commerce giant in the fourth quarter.
Overnight, the S&P 500 climbed to a record-high close as investors assessed a mixed bag of early quarterly results.
The currency market was fairly muted in early Asian hours, with the dollar index, which measures the U.S. currency against six rivals, little changed at 103.48.
The index is up 2% this month, on course for its strongest monthly performance since September as traders walk back their expectations of early and steep interest rate cuts from the Federal Reserve.
The Japanese yen strengthened 0.16% to 148.14 per dollar on January 24. The BOJ on January 23 maintained its ultra-easy monetary settings but signalled its growing conviction that conditions for phasing out its huge stimulus were falling into place, suggesting that an end to negative interest rates was nearing.