As China’s Activity Data Falls Below Expectations, Hong Kong Stocks Jump More Than 4% In Tech

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After the meeting between Asia-Pacific President Xi Jinping and U.S. President Joe Biden, stocks in the region mainly increased on Tuesday.

The Hang Seng index in Hong Kong ended 4.11% higher at 18,343.12 on Wednesday, lifted by the Hang Seng Tech index, which soared 7.3%.

Mainland China’s Shanghai Composite showed an improvement of 1.64% to 3,134.08, while the Shenzhen Component grew 2.14% to 11,351.33. It was a surprise because earlier data had suggested poor industrial production and retail sales results for the country.

The S&P/ASX 200 in Australia fell by 0.07% to 7,141.60, while South Korea’s Kospi increased by 0.23% to 2,480.33. According to official data sources, the Nikkei 225 in Japan also rose slightly by 0.1% to 27,990 as the country’s economy unexpectedly contracted in the third quarter.

Michael Vatikiotis, senior advisor from the Centre for Humanitarian Dialogue, states that if we focus more on fertiliser, the global cost of food will lower, and securing the extension of the Black Sea deal will be much simpler.

According to him, 70% of Europe’s fertiliser production is not being used because there needs to be more ammonium nitrate. Russia produces a fourth of the world’s total production of this substance.

I think what Russia is looking for is more concern on the part of the international community for the demand for fertiliser so that it can sort of implement that deal,” Vatikiotis stated that greater importance on fertiliser is necessary to bring down the worldwide cost of food.

The output gap in the economy remains, Jesper Koll of Monex Group said after Japan released its third-quarter gross domestic product estimates, meaning that The Bank of Japan will remain a “bastion of stability” for close to another year.

The GDP figure, which did not meet expectations, verified “how touchy the Japanese consumer is” in the current environment.

Beyond the next 12 months, the central bank will need to pay attention to whether the U.S. economy ends up with a soft landing or hard landing, “said Koll.

He noted observing if the Japanese government can formulate an industrial policy that pushes businesses to invest in themselves.

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