Japan is about to expand its state of emergency, stocks still rise

Japan expanded emergency, Nikkei 225 still increased by more than 1%

Major stock indices of the Asia-Pacific region fluctuated in opposite directions on January 13 trading day when investors were cautious about complicated developments of the Covid-19 epidemic.

Japan’s Nikkei 225 index rose more than 1% today. Photo: AFP

Japanese stocks on January 13 still closed up despite the information that the government of this country expanded the scope of application of emergency. Specifically, the Nikkei 225 index still rose 1.04% to 28,456.59 points while the Topix index edged up 0.35% to 1,864.40 points.

Japanese media reported that Prime Minister Yoshihide Suga on January 13 expanded the scope of emergency application to 7 prefectures of Osaka, Kyoto, Hyogo, Aichi, Gifu, Tochigi and Fukuoka, bringing the total number of provinces / cities. in Japan applied a state of emergency up 11/47.

Previously, on January 8, the Japanese government declared a state of emergency for the capital Tokyo as well as some neighboring prefectures including Kanagawa, Chiba, and Saitama, which will last until February 7.

Mainland Chinese stock markets today closed in the red, with the Shanghai Composite Index slipping 0.27% to 3,598.65 points and the Shenzhen Component down 0.612% to 15,365.43 points.

On the Hong Kong market, the Hang Seng index did not record large fluctuations on the day of January 13 but still closed down 0.15% to 28,235.60 points. Shares of Lenovo listed in Hong Kong soared more than 10% after the Chinese computer maker revealed its plans to list in the Shanghai market.

In Korea, the Kospi index today rose 0.71% to 3,148.29 points. Australian stocks also closed up slightly today with the S & P / ASX 200 index inching 0.11% to 6,686.60 points. In general, the MSCI Asia-Pacific Index (excluding Japan) increased by 0.55%.

Concerning translation of Covid-19 now China, local authorities near the capital Beijing are stepping up measures to limit social activity after noticing an increased number of Covid-19 infections.

Ting Lu, China market chief economist at Nomura Financial Company, said: “The worse the Covid-19 situation will impact economic performance and the markets may lower their outlook. on pent-up consumer demand will rise sharply during the holidays (Lunar New Year) in mid-February “.

On the US stock market, the Dow Jones industrial average last night rose 60 points to 31,068.69, while the Nasdaq Composite Index closed 0.3% higher to 13,072.43 points, while the S&P index. 500 slightly increased to 3,801.19.

US stocks rallied after the yield on 10 US Treasury notes reached 1,187%, the highest level since March 2020, but then fell and closed at 1.1189%. U.S. Treasury yields have recently risen since Democrats had a majority in both the House and Senate, opening the door to additional Covid-19 financial stimulus packages.

Investors continue to watch Washington’s move after US Vice President Mike Pence said on the evening of January 12 that he would not approve to remove President Trump. Pence’s statement came after the Democratic House of Representatives passed a resolution urging Mr. Pence and the US government to remove Trump from the White House on allegations of Trump inciting violent protests. riot at the Capitol last week.

Tensions in US politics took place a few days before the official inauguration of President-elect Joe Biden on January 20.

On the money market, the US dollar index against other major currencies fell to 89.90, from 90,037 previously set. The Japanese Yen inched up compared to the beginning of the week when converting 103.66 JPY / USD, while the Australian dollar also strengthened and traded 1 AUD / 0.7771 USD, compared to 1 AUD / 0.77 USD earlier week.

Oil prices on the Asian market this afternoon went up, with Brent crude oil futures up 0.74% and trading 57.00 USD / barrel while the US crude futures price rose 0.68% to 53, 57 USD / barrel.

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