The Nikkei 225 Index fell 0.61% to close at 29,612 while the broader Topix Index shed 0.73% to 2,041 on Friday, amid profit taking ahead of the weekend and as shipping and industrial firms dragged the indices down. Japanese shippers slumped despite reporting strong corporate results as investors anticipate the peak of supply chain chaos-induced profits, led by losses in Nippon Yusen (-4.73%), Mitsui O.S.K. (-5.78%) and Kawasaki Kisen (-6.27%). Industrial firms also contributed to the declines, led by Nippon Steel (-5.93%), Daikin Industries (-2.81%) and JFE Holdings (-4.84%). Meanwhile, both major Japanese indices closed the week at least 2% higher as investors moved past the election and major economic events.
Meanwhile, The yield on the benchmark Japan 10-year JGB sank further towards 0.06%, the lowest in over four weeks, as investors digested the widely expected Federal Reserve’s tapering announcement. Earlier, Japanese 10-year bonds were already recovering from 7-month highs as jitters over massive economic stimulus eased following the ruling party’s comfortable victory in Lower House general elections. Voters chose to consolidate Prime Minister Fumio Kishida’s power, which eases pressure from the government to lure parliamentary support via extra spending.
The BSE Sensex gained 295.7 points or 0.49% to close at 60,067.62 in a special Muhurat trading session on Thursday snapping a 2-day losing streak. 25 out of 30 stocks ended in green, with gains led by auto stock Mahindra and Mahindra (+2.87%), hotel-to-consumer conglomerate Indian Tobacco Company (1.82%) and Bajaj Auto (1.68%). On the other hand, shares of ICICI bank fell the most(-0.43%). On the week, the BSE fell by 1.3%. The stock market is closed for the Diwali holiday on Friday.
Meanwhile, The yield on the 10-year government bonds in India stood at 6.35% in early November, remaining close to high levels not seen since April 2020, amid persistent fears of soaring energy prices slowing industrial production and fresh COVID cases of new variant A.Y.4.2 capping the economic recovery. In its monetary policy meeting last month, the Reserve Bank of India suspended bond buying under its government securities acquisition programme.
The Shanghai Composite Index fell 1% to close at 3,492, the lowest since August 23rd while the Shenzhen Component Index shed 0.64% to 14,463 on Friday, as coronavirus outbreaks, an ongoing coal industry crackdown and a persistent property sector debt crisis weighed on Chinese equities. The property sector was dragged by Kaisa Group after its shares were suspended for trading at the Hong Kong exchange as a company affiliate missed payment on an onshore debt, citing liquidity pressures due to a challenging property market and rating downgrades. Shares of coal miners also slumped after companies committed to cut prices amid a state intervention meant to ease a domestic energy crisis. Meanwhile, China’s recent COVID outbreak spread to a 20th province as new cases neared 800.
Meanwhile, China 10Y Bond Yield was 2.90 percent on Friday November 5, according to over-the-counter interbank yield quotes for this government bond maturity.