Market Talk – Monday, Dec. 21

ASIA:

Chinese leaders who attended the Central Economic Work Conference from Dec. 16 to 18 were buoyant about China’s relative successes while remaining cautious on major changes to stimulus policies, CNBC reported according to state media. The annual gathering sets development priorities for the upcoming year. Analysts who followed the meeting said it provided little in the way of policy changes or new information. Chinese state media coverage of the meeting played up the country’s recent successes but also warned about the changes wrought by the pandemic and uncertainties abroad. While this year’s economic targets focused on the fight against poverty and pollution, the plans for 2021 – announced weeks after the authorities published the blueprint for the latest five-year plan – appear to be more strategic with a focus on boosting innovation, self-reliance in the supply chain and domestic demand.

India plans to set tough financial targets for state-run firms to try to improve their valuations ahead of a push by Prime Minister Narendra Modi to privatize some companies, according to a draft government document and sources. The government, which is trying to rein in its fiscal deficit, wants state-run firms to focus on improving market capitalization and dividend payouts from the 2021/22 fiscal year, starting April, as well as ramping up the sale of non-core assets, a business daily reported. After regaining power in 2019, Modi’s government prepared a plan to raise as much as 3.25 trillion rupees ($44 billion) over 5 years by selling down its stakes in companies including Oil and Natural Gas Corp, Indian Oil Corp, NMDC Ltd, Coal India, Bharat Heavy Electricals Ltd, and BEML Ltd.

The Reserve Bank of India’s monetary policy committee held a meeting and is likely to maintain its accommodative monetary policy stance but a faster-than-expected recovery in growth is limiting the scope for further rate cuts. The MPC left key interest rates unchanged this month amid persistently high inflation but said it would ensure ample liquidity to stressed sectors to keep India’s nascent economic recovery on track. The Indian economy contracted by a smaller-than-expected 7.5% in the September quarter while retail inflation eased to 6.93% in November but stayed well above the RBI’s mandated 2%-6% target range.

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 decreased 48.97 points or -0.18% to 26,714.42
  • Shanghai increased 25.67 points or 0.76% to 3,420.57
  • Hang Seng decreased 191.92 points or -0.72% to 26,306.68
  • ASX 200 decreased 5.60 points or -0.08% to 6,669.90
  • Kospi increased 6.47 points or 0.23% to 2,778.65
  • SENSEX decreased 1406.73 points or -3.00% to 45,553.96
  • Nifty50 decreased 432.15 points or -3.14% to 13,328.40
1 2 3 4
View single page >> |

Disclosure: None.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.