Chinese stock market catches up after long holiday period

Photo: ANP

The stock market in China rose sharply on Monday. Investors in Shanghai were catching up after the long holiday period due to the Chinese New Year celebrations. Other stock indicators in the Asian region were mostly down. Markets were still processing last Friday’s US jobs report, which came in much stronger than expected.

The main index in Shanghai was up 2 percent in the meantime after the sharp fall before the start of the holiday week. The increase was led by banks and energy companies. Construction companies were also in the spotlight after Beijing announced it was accelerating the construction of new infrastructure projects. Stocks in the travel sector and cinemas came under pressure after disappointing spending and movie visits during the important holiday period in the country. It also found that activity in China’s services sector grew at its slowest pace in five months in January due to local coronavirus restrictions.

In Tokyo, the Nikkei ended 0.7 percent lower at 27,248.87 points, despite a strong price gain from SoftBank, which will report on Tuesday. The Japanese tech investor added 2.6 percent after reports that the company wants to sell a large part of its stake in the Chinese online store Alibaba. SoftBank reportedly has a nearly 25 percent stake in Alibaba and may be looking to sell 1 billion shares of Alibaba, according to analysts at Citi. Alibaba fell 4 percent in Hong Kong and the Hang Seng index lost 0.3 percent.

Toshiba rose nearly 2 percent in Tokyo. The technology and electronics group will split into two companies and sell non-core activities. Last year, Toshiba announced that it wanted to divide the company into three parts. The component that makes devices, including the chip branch, will be listed separately. The plan to put the infrastructure branch on its own feet was scrapped. In addition, the company is selling its majority stake in Toshiba Carrier, which makes air conditioners, to its US partner Carrier Global and plans to sell other non-core businesses. The split into two parts would be cheaper and simpler than the earlier plan to divide the company into three, according to the company.

Chinese stock market catches up after long holiday period
Source link Chinese stock market catches up after long holiday period

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