June 29, 2022
ASIAN SHARE MARKET TRADE STEADY ON TUESDAY

ASIAN SHARE MARKET TRADE STEADY ON TUESDAY

The Chinese central bank on Monday cut a benchmark lending rate for the first time since April 2020, thus hitting concerns among investors , which in turn led Tokyo stocks to fall, and the Nikkei index to decline more than 2 percent to below the 28,000 mark.

The People’s Bank of China cut its one-year loan prime rate to 3.80 percent from 3.85 percent to support its economy amid sluggish personal consumption and the sporadic spread of the coronavirus.

According to reports, the decision as such was also made as U.S., The Bank of England and European banks announced to raise its interest rates to fight inflation.

Market summary –

• On Monday trading, the 225-issue Nikkei Stock Average downgraded 607.87 points from Friday, or 2.13 percent, at 27,937.81.
• On the Tokyo Stock Exchange, the broader Topix index of all First Section issues ended 43.14 points, or 2.17 percent, lower at 1,941.33.
• Stock issues lost ground in almost every industry, led by mining, securities house, and rubber product.
• The U.S. dollar just as the Japanese currency was weak mostly in the mid-113 yen range.
• The dollar at 5 p.m., raised 113.45-47 yen.
• In Tokyo late Friday afternoon, the euro was quoted at $1.1254-1256 and 127.68-72 yen against $1.1231-1241 and 127.74-84 yen in New York and $1.1317-1319 and 128.62-66 yen.
• With the investors buying the safe-haven debt, the yield on the benchmark 10-year Japanese government bond fell 0.010 percentage point from Friday’s close to 0.035 percent, on concerns over China’s economy.
• Declining issues on the First Section outnumbered advancers 2,051 to 115, while 18 ended unchanged.
• The worries over the spread of infections led air and land transportation issues to be sold off.
• In Railways, Tobu Railway stocks dropped 13 yen, or 0.5 percent, to 2,633 yen, while another railway operator, Keio’s stocks fell 70 yen, or 1.4 percent, to 5,080 yen.
• Japan Airlines stocks fell 47 yen, or 2.2 percent, to 2,058 yen.
• The country’s pharmaceutical company, Eisai stocks traded down 98 yen, or 1.4 percent, to 6,876 yen.
• Volume on the main section fell to 1,142.33 million shares.