MARKETS: China is pushing listed companies to create value, in Asia, stock markets are sluggish

Asian stock markets were in mixed mood on Monday. In Japan, the exchange rates fell and in China an increase was seen. The Asia Dow index was down 0.5 percent.

In Japan, the Nikkei index was down 1.0 percent and the broader TOPIX index was down 0.7 percent. Of the industries, general utility services were the only sector to show a slight increase. The hardest declines were healthcare with a 2.2 percent decline and the IT sector with a decline of more than 1 percent.

Governor of the Bank of Japan Kazuo Ueda gave the last big speech before the December rate meeting looming a month away. The market has been expecting an interest rate hike from the central bank in December, but Ueda avoided hinting at the likelihood of an interest rate hike and repeated the familiar mantra of central bankers that decisions depend on economic development. Ueda’s speech was reflected, among other things, in the weakening of the yen against other major currencies.

In China, the authorities are still trying to wake up the stock market. After a strong moment in early autumn, the rates have slipped again, and in recent weeks the result of the US presidential election has contributed to the mood in China. Donald Trump had a lot of different customs fees on display in his campaign.

At the end of last week, the Chinese Securities Authority announced new guidelines for listed companies, which calls on companies to create clear, concrete and feasible plans to create value.

“The guidance is a continuation of Beijing’s efforts to stabilize the market in the short term, and in the medium term the purpose is to patch loopholes and increase market efficiency. I don’t think this will have any immediate impact other than sentiment.” RBC Bluebay Asset Managementin portfolio manager Siguo Chen commented to Bloomberg.

From the Asian markets, Japan and Korea have also had similar projects in the past.

The Hang Seng index of the Hong Kong stock exchange was up 0.7 percent. Elsewhere in Asia, an increase was seen in Korea, but a decrease in stock exchanges in Taiwan and China.

On the foreign exchange market, the yen had weakened by 0.2 percent against the pound and 0.1 percent against the euro and the dollar.

You got 1.054 dollars for the euro and 154.42 yen for the dollar.

The expected market events of the week include, for example, the euro zone inflation figures on Tuesday and the chip designer Nvidia’s results announcement on Wednesday.

In the morning, both the European and the American Index Futures were slightly up, anticipating a greener stock market opening.