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20.02.2023 03:39 PM
Stocks in Asia show green figures

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Most of the main Asian indicators are showing an upward trend. The exception was the Korean KOSPI, which fell by 0.01%. All other indices demonstrated growth. The Australian S&P/ASX 200 and Japanese Nikkei 225 indices gained 0.01% and 0.06%, respectively. Hong Kong Hang Seng Index and Shenzhen Composite increased by 0.82% and 0.48% respectively. The Shanghai Composite index soared by 1.61%.

This week, the minutes of the US Federal Reserve's meeting held this month will be released. Investors hope to find additional signs regarding the central regulator's further plans on the pace of interest rate increases.

Last year, the US Fed has raised interest rates seven times to combat rising inflation, as have many other regulators around the world. Despite all the measures taken, the rate of US consumer price growth is still far from the 2% target. In addition, the rapid pace of interest rate increases has raised fears among investors that an economic downturn may be around the corner.

The next meeting of the US Federal Reserve will be held next month. Most experts believe that the interest rate may again be increased by 0.25% to 4.75-5%.

In addition, investors also focused on the retention of the main rate in China on one-year loans at 3.65%, and on five-year loans - at the level of 4.3%. China's central regulator has not raised rates for six meetings in a row. Moreover, some analysts predict a possible reduction in rates in order to stimulate economic growth in the country.

The Shanghai indicator was boosted by Talkweb Information, which gained 10%, China Telecom, which increased by 9.2%, Sany Heavy Industry, which added 7.3%, and iFLYTEK and China United Network, rising by 6.8% and 6.5% respectively.

Lenovo Group's shares rose 4.2% thanks to the positive forecast showing an increase in sales of computers in the second half of this year despite a 32% reduction in net profits in the third fiscal quarter.

Despite the slight increase in Japan's Nikkei 225, the value of its constituent companies' securities mostly declined. Sony Group decreased by 2%, Tokyo Electron lost 1.7%, Kawasaki Kisen dropped by 1.2%, Recruit Holdings and SoftBank Group sank by 0.7% and 0.6% respectively. Nintendo and Keyence were down by 0.5% each.

The companies included in the Korean KOSPI also showed red numbers. Samsung Electronics fell by 0.5% and Hyundai Motor dropped by 0.6%.

The Australian S&P/ASX 200 was boosted by BHP Group, which gained 1%, as well as Commonwealth Bank, which added 0.5%. At the same time, the value of Pilbara Minerals decreased by 4.1% and Woodside Energy dropped by 0.7%.

Following A2 Milk's announcement of higher distribution costs for the current fiscal year, the value of the company's stocks fell by 6.3%.

Against the background of the announcement of BlueScope Steel about the reduction of net profit by 64% in the previous half of this fiscal year, its shares lost 12%.

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