The Bank of Japan's Adjustment of Monetary Policy Caused Fluctuations, Asian Stocks Experience Mixed Results
2022-12-22 05:00uSMART

Source: Lianhe Zaobao

December 22, 2022


The U.S. stock market ended a four-day losing streak overnight, but the sudden adjustment of the Bank of Japan's loose monetary policy caused market fluctuations, with Asian stock markets closing mixed on Wednesday, December 21st. The Straits Times Index in Singapore rose 2.22 points or 0.07%, closing at 3,256.19 points.

In an interview with Lianhe Zaobao, market strategist Huang Jia Ren said that the peak of the earnings season has passed, and with the Federal Reserve's interest rate meeting and several key economic data such as the Producer Price Index (PPI) already released, the Straits Times Index's slight rise is mainly driven by the overnight gains in U.S. stocks in the absence of fundamentals.

Huang Jia Ren believes that the support point for the Straits Times Index is at 3,200 points and the resistance point is at 3,300 points.

In an interview, Philips Securities' Chief Stock Broker Tan Ying Ying said: "Due to the approaching holiday, the trading volume of the Straits Times Index has been low in recent days, but we believe that as the economy gradually reopens, the performance of the Straits Times Index will continue to be stable. However, due to the unexpected adjustment of the monetary policy by the Bank of Japan, which has brought some pressure on the exchange rate of the US dollar against the Japanese yen, this may to some extent add a layer of uncertainty to the US economy's potential recession next year."

Stock markets in other regions of Asia were mixed, with the largest decline in the Tokyo stock market, down 0.68%; Shenzhen and Seoul fell 0.34% and 0.19%, respectively, and Shanghai's stock market fell slightly by 0.17%. Sydney led the way, up 1.29%; Taiwan and Hong Kong stock markets closed up 0.45% and 0.34%, respectively.

The local stock market had a total turnover of 951.68 million shares, with a total trading value of 740.78 million yuan. There were 247 stocks that rose and 219 stocks that fell.

Fifteen components of the Straits Times Index rose, eight fell, and seven remained unchanged.

The biggest gainers were DFI Retail Group and Mapletree Commercial Trust, with DFI rising 3.53% to close at 2.93 US dollars, and Mapletree rising 1.85% to close at 1.65 yuan.

The biggest losers were Thai Beverage and Sembcorp Industries, with Thai Beverage falling 1.46% to close at 0.675 yuan and Sembcorp Industries falling 0.88% to close at 3.38 yuan.

In terms of individual stock news, Keppel Land announced that it has entered into an agreement through its wholly-owned subsidiary with China Overseas Development to acquire a new, completed elderly care facility located in Qixia District, Nanjing with a total gross floor area of 10,846 square meters. The project is expected to open in the second half of 2023, and will be a high-end nursing home with approximately 400 beds.

Hyphens Pharma International, a local specialty pharma and consumer healthcare company, announced that its subsidiary has entered into an exclusive license and supply agreement with Cassiopea S.p.A., a subsidiary of Cosmo Pharmaceuticals N.V. , to develop and commercialize Winlevi cream in 10 Southeast Asian countries, as well as exclusive rights to any future product extensions or improvements for the treatment of acne. The company's stock closed at 0.31 yuan with no change.

Ho Bee Land issued a profit warning, expecting a significant decline in the group's half-year and full-year net profit compared to the same period last year as of December 31st. The company's stock closed at 2.37 yuan with no change.



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