Nikkei, Topix and Co. Asian markets are preparing for central bank decisions

Nikkei, Topix and Co. Asian markets are preparing for central bank decisions

Nikkei, Topix and Co. Asian markets are preparing for central bank decisions
Asian investors are optimistic about the new stock market week.  Source: dpa

The Asian stock markets will initially gain ground on Monday. Investors are apparently confident that the markets will survive whatever comes this week: Prime Minister Boris Johnson warned of a “tidal wave” of new infections because of the virus variant Omikron and the US Federal Reserve is expected to have one this week A faster reduction in security purchases and thus an earlier start of interest rate hikes will signal.

The European Central Bank, too, are heading towards a normalization of monetary policy. “The prospect of global monetary policy moving at different rates in different countries is a recipe for volatility, and one could argue that the risks surrounding the virus have increased too,” said John Briggs, investment strategist at NatWest Markets.

The Nikkei index, which comprises 225 values, was 0.9 percent higher at 28,697 points. The broader Topix index rose 0.5 percent to hit 1985 points. The Shanghai stock exchange was 0.9 percent up. The index of the most important companies in Shanghai and Shenzen gained 1.2 percent. In Asian foreign exchange trading, the dollar gained 0.1 percent to 113.52 yen and was down 0.1 percent to 6.3624 yuan. In relation to the Swiss currency, it was quoted 0.1 percent higher at 0.9219 francs. At the same time, the euro fell 0.1 percent to 1.1295 dollars and fell 0.1 percent to 1.0415 francs. The pound sterling fell 0.2 percent to $ 1.3249.

Japan’s automaker remains concerned about component supply crisis

However, the supply crisis for electronic components continues to cause concern for the Japanese automotive industry. As shown in a quarterly survey (“Tankan”) published by the Japanese central bank on Monday, the sentiment index it found for the automaker around industry leader Toyota fell by one point between September and December compared to the previous quarter to minus eight. A negative index means that the pessimists in the industry are in the majority. Across all sectors, the sentiment index for the entire large-scale industry in the country remained at plus 18, after the mood had brightened in the previous five quarters.

Japan’s automotive industry, which is the backbone of the world’s third largest economy before Germany, had to cut production in recent months due to a lack of supplier parts and semiconductor bottlenecks. In contrast, the mood in the country’s service sector brightened significantly after the corona emergency was lifted in October and is now back at the level before the start of the pandemic, as the Tankan shows.

According to the quarterly survey, the index for non-manufacturing companies rose to plus nine in December after plus two in September. The mood in the management floors of these companies has been improving for six quarters now, although the recovery continues to lag behind that in large-scale industry.