Stock markets in Asia closed mostly higher today, as investors await another 25 basis point cut in interest rates from the Federal Reserve (Fed). In particular, Nissan’s shares jumped almost 24% in Japan, following reports of a potential merger with Honda.
In Hong Kong, the Hang Seng index rose 0.83%, to 19,864.55 points. In mainland China, the Shanghai Composite advanced 0.62% to 3,382.21 points, while the less comprehensive Shenzhen Composite gained 0.58% to 2,025.53 points.
For strategist Charu Chanana, from Saxo Bank, investors should not minimize the prospects of robust economic support from the Chinese government. Yesterday, the Reuters revealed that the Asian country’s authorities plan to increase the fiscal deficit target to 4% of Gross Domestic Product (GDP) in 2025.
In Tokyo, Nissan’s shares jumped 23.70% and Honda’s shares fell 3.04%, after the Nikkei reveal that the two automakers have begun negotiations for a potential merger. The sector’s shares remained volatile throughout the session – Suzuki, for example, ended up 0.48%, after rising almost 2% earlier.
Even so, the Nikkei index closed down 0.72%, at 39,081.71 points, with technology under pressure. In Taiwan, Taiex rose 0.65%, to 23,168.67 points.
In Seoul, the Kospi index registered an appreciation of 1.12%, at 2,484.43 points, as local markets try to put the South Korean political crisis behind them following the impeachment of President Yoon Suk Yeol.
In Oceania, the S&P/ASX 200 index fell 0.06%, to 8,309.40 points, in Sydney.
