The main stock indexes in the Asia-Pacific region ended the last session of the week into the green, supported by the news of accelerated inflation in Japan.
In Japan, the blue-chip index Nikkei 225 added 110.44 points, or 0.50%, to 22,200.56 points. Japanese core consumer price index (CPI) rose in March before the expected fall in price pressure later this year to raise the challenges of the Central Bank of Japan (BoJ). Consumer prices in Japan rose by 0.5% year-over-year in March, meeting analyst expectations and reaching its highest levels since November last year. For comparison, a month earlier, inflation was 0.2%. Excluding fresh food and energy, the consumer prices rose by 0.4%, which also corresponds to expectations. the prices of air conditioners rose by 10.2%, which is their biggest growth for the past four and a half years.
The stocks of Nintendo rose by 14.12% after it became clear that Chinese Tencent Holdings had been approved to sell one of the company’s games for its Switch console. A Nintendo spokesman confirmed that Tencent had applied for the sale of Switch, but could not comment on the approval, saying it was only part of the whole process.
At the same time, the stocks of the carmaker Nissan posted a 2.24% drop in value after the company announced it would reduce its production by 15% during the current financial year ending in March 2020.
In China, the mainland index Shanghai Composite advanced by 0.63% to 3,270.80 points.
In South Korea, the local index Kospi grew by 0.11% to 2,216.15 points. Posco and SK Telecom declined by 1.32% and 1.33%, respectively.
Stock exchanges in Hong Kong, Australia, Singapore, and Indonesia are closed today.
Glory days are over for European stocks in 2019
Most of the European stocks exchanges are closed today because of the Good Friday, but analysts still analyze the worth of European stocks.
The strategists can’t believe the European equity rally will keep going. The Stoxx Europe 600 Index is likely to fall 8.9% to 355 points, by the end of 2019. The Euro Stoxx 50 Index, home of the Eurozone’s biggest companies, is seen retreating 6.4% from current levels to 3,255 points, according to the latest survey.
The region’s equities are being torn between conflicting signals: optimism over global growth has helped boost the value of the Stoxx 600 by about 1.7 billion USD from its December lows, while outflows from European equity funds continue almost non-stop.
Although Europe’s corporate profit outlook has been beating that of global firms, the latest Bank of America Merrill Lynch fund manager survey shows that being short the region’s stocks continue to be the most popular trade globally.
Based on European Commission forecasts for the rest of the Eurozone, the government’s latest prediction would leave Germany as the region’s worst performer this year, bar Italy, which is stagnating. Despite these woes, the DAX 30 index is up by 15% in 2019.
Growth worries gripped equity markets yesterday after surveys showed businesses across the Eurozone stumbled into the second quarter as demand remained weak despite more modest price rises. The mixed PMI data, the lowered economic growth forecasts for the German economy, as well as political issues, continue to weight on the European stock markets.