Asia-Pacific region (APR) stock indices are steadily rising on Tuesday, with the exception of the Japanese indicator.
The markets of China and Hong Kong are rising following a jump in developer shares after restrictions on the sector were eased the day before.
China Securities Regulatory Commission (CSRC) said on Monday it had lifted a multi-year ban on listed developers to sell shares in the domestic market in order to raise funds to pay debts and M&A deals.
The decision was made to support a “stable and sustainable” development of the sector, the CSRC said.
“These measures are likely to accelerate the consolidation of real estate companies,” said China Index Holdings expert Liu Shui.
Shares of major Chinese real estate developer Country Garden Holdings Co. jumped 8.2 percent in Hong Kong trading.
China Vanke gained 12.2% in Hong Kong and 10% in Shenzhen, Gemdale gained 5.1% and 10% in Hong Kong and Shanghai respectively and Greenland Holdings gained 5.3% and 10%.
The Shanghai Composite stock index rose 2% in trading, the Shenzhen Composite rose 2.2% and Hong Kong’s Hang Seng gained 4%.
The Chinese market is also supported by growing expectations of traders that Beijing will ease quarantine restrictions after last weekend’s mass protests in the country.
“Expectations are growing that China’s zero-tolerance COVID-19 policy is over, and that’s improving traders’ sentiment,” notes Kiyong Song, a Societe Generale analyst in Hong Kong, cited by Bloomberg.
The value of securities of Chinese alcohol producer Kweichow Moutai rose by 5.4%. On the eve, the company announced its intention to pay a special dividend of 21.91 yuan ($3.06) for the first time since its shares were listed on the stock exchange in 2001.
Japan’s Nikkei 225 stock index was losing 0.5 percent in trading amid weak statistical data.
Japan’s retail sales rose in October for the eighth month in a row, but the rate of increase slowed compared to September and was worse than analysts’ expectations.
According to the Ministry of Economy, Trade and Industry, retail sales rose 4.3% last month compared with October 2021. They were up 4.8% in September. Experts polled by Trading Economics predicted an average increase of 5 percent.
Retail sales rose 0.2% from the previous month after climbing 1.5% in September.
Unemployment in Japan in October remained at 2.6%, while analysts expected its reduction to 2.5%.
Leaders of the decrease are shares of technological companies: SoftBank Group securities fell by 1.4%, Tokyo Electron – by 1.2%, Keyence Corp. – by 1.6% and Advantest – by 1.7%.
Shares of Toyota Motor (-1.2%), Sony Group (-1%), Mitsubishi Corp. (-0.9%) also fell in price.
The Australian S&P/ASX 200 added 0.3% on Tuesday, while South Korea’s KOSPI gained 0.9%.
BHP Group shares gained 2.1%, Rio Tinto – 3.5% and Pilbara Minerals – 1.6%.
