Japan's Nikkei gives up early gains on China slowdown worries

By Kevin Buckland

TOKYO, May 16 (Reuters) - Japan's Nikkei stock average shed most of its early gains on Monday as data showing a sharper-than-expected slowdown at factories in major trade partner China offset the boost from a tech-driven rally on Wall Street on Friday.

The Nikkei .N225 entered the midday break up 0.24% at 26,492.29 after earlier rising as much as 1.55% to a one-week high of 26,836.96.

Despite the small gain, there were more than twice as many losers as winners among the index's 225 component stocks.

The broader Topix .TOPX slipped 0.14% to 1,861.64 after opening the day about 1% higher.

China's industrial production unexpectedly fell 2.9% last month, while retail sales shrank a bigger-than-forecast 11.1% amid stringent coronavirus curbs on activity.

The deepening slowdown overshadowed strong gains in U.S. stocks on Friday, led by the Nasdaq's NDX 3.7% advance. The Philadelphia SE Semiconductor Index .SOX jumped 5% on the day.

"The risks from China's slowdown are one of the main reasons for the poor sentiment in equity markets," said Masayuki Kichikawa, chief macro strategist at Sumitomo Mitsui Asset Management in Tokyo.

"At the same time, we may be close to the peak in terms of China concerns," with the government now starting to ease COVID-19 restrictions, he said.

Shanghai will gradually begin reopening businesses such as shopping malls and hair salons from Monday, following weeks of strict lockdowns.

On the Nikkei, tech was the best performing sector, up 0.74%, while basic materials led the losers with a drop of 1.10%, followed by a 1.05% slide for utilities.

Earnings results also divided the market, with Friday marking the climax of the reporting season. For instance, precision parts maker NTN Corp 64.72.T was the biggest percentage gainer with a 12.15% surge compared with Dowa Holdings' 5714.T 13.26% tumble.

Automakers were also split, with Mazda 7261.T rallying a further 5.06% following gains on Friday after its earnings.

But Honda 7267.T slumped 4.25% on a disappointing earnings forecast given after Friday's close. Motorcycle-maker Yamaha 7272.T sank 9.32%, having reported underwhelming results after the bell on Friday.
Editing by Aditya Soni

免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。


本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。