Tokyo’s Nikkei closed at a two-month low of 26,387.72, losing 180.31, or -0.68%, while the yen strengthened against the dollar. On Tuesday (December 20), the Bank of Japan (BOJ) decided to expand the framework for long-term bond yields, which is seen by the market as a tightening of monetary policy. This would allow long-term interest rates to rise from the previous range of -0.25% to +0.25% to -0.5% to +0.5%. The losers were Hino Motors-5%, Tokyo Tatemono-4.71%, and Fujikura-4.61%. Sumitomo Mitsui Financial+4.12%, Mitsubishi UF J Financial+3.92%, and Sumitomo Mitsui+3.24% were the winners.
In Australia, the S&P/ASX 200 closed at 7,115.10 points, up 90.80 points or +1.29%, and the All Ordinaries closed at 7,293.00 points, up 93.40 points or +1.30%, driven by gold stock buying. The winners were Westgold Resources+11.70%, Evolution Mining+8.10%, and St Barbara+7.95%. The losers were Nuix-3.79%, Dimain Australia-1.16%, and Breville Group-1.15%.
China’s Shanghai Composite closed at 3,068.41 points, down 5.36 points or -0.17%, as investors remained concerned about the spread of the COVID-19 pandemic in China. The worst performers were Guangzhou Sanfu New Materials Technology-13.48%, Beijing SunwayWorld Science Technology-10.75%, and Thinker Agricultural Machinery-10.02%. The best performers were Staidson Beijing Biopharma+17.92%, and Zhangjiagang Haiguo New Energy+11.56%.
The South Korea Composite Index (KOSPI) fell for the fifth consecutive day to 2,328.95 points, down 4.34 points, or 0.19%, as investors remained concerned about the global recession and the Japanese government’s adjustment of its 10-year bond yield framework, which marks a shift toward tighter monetary policy in line with central banks around the world. The losers were Dynamic Design-8.33%, Kc Cottrell-6.73%, and ENPlus Co Ltd-6.54%. The winners were Hana Pharm+15.38%, Jeil Pharm+14.42%, and Hwaseung Enterprise+11.84%.
The Hang Seng in Hong Kong closed slightly higher at 19,160.49 points, up 65.69 points or +0.34%, supported by further easing of COVID-19 control measures, which boosted investor confidence. The best performers were DreamEast (+65.88%), Sunkwan (+48.31%), and Jimu (+42.11%). The worst performers were Asia Resources-29.09%, Capital Finance-21.21%, and Wai Chun Mining Industry-20%.
In Thailand, the SET recovered after yesterday’s sharp decline in line with the performance of Asian equity markets, but in the short term there are still risk factors to consider. The SET closed at 1,609.94 points, up 5.50 points or +0.34%. The winners were Jasmine Telecom Systems (+21.28%), Sabai Technology (+10.68%), and A Quanse Connection (+9.62%). The losers were Polynet-15.79%, Star Money PCL-10.91%, and Nation Group-8.33%.