Market Talk – Tuesday, Jan. 5

ASIA:

China’s economic growth could reach as high as 9 percent next year, and its rapid rebound from the coronavirus pandemic may help the economy overtake the US to become the world’s largest later this decade, analysts said. Nomura and China International Capital Corporation put China’s gross domestic product growth for 2021 at 9 percent. Expectations over China’s economic outlook have turned bullish in recent weeks, with the world’s second-largest economy leading the global recovery from the impact of the coronavirus with its robust export growth, strong government spending, and a low infection rate.

India’s factory sector ended a rough 2020 on a stronger note as manufacturers boosted production to meet rising demand, a private survey showed on Monday, although the employment situation worsened as firms continued to reduce headcounts. The Nikkei Manufacturing Purchasing Managers’ Index, compiled by IHS Markit, rose slightly to 56.4 in December from November’s 56.3, above the 50-level separating growth from contraction for a fifth month. Rising demand, however, failed to improve conditions in the labor market, with manufacturers continuing to cut jobs.

Fiat Chrysler Automobiles NV (FCA) said on Tuesday it will invest $250 million to grow its presence in India with the launch of four new sport-utility vehicles (SUVs) under its Jeep brand over the next two years. The investment will be made to locally manufacture a mid-size, three-row SUV, assemble the Jeep Wrangler and Jeep Grand Cherokee vehicles in the country and launch a new version of its Jeep Compass SUV, FCA said in a statement. FCA currently has less than a 1% share of India’s passenger vehicle market.

Japan’s economy is expected to make its sharpest rebound in decades this year, with consumption set to pick up toward the end of 2021 as the impact of the COVID-19 pandemic on the broader economy eases, Japan Times reported. The world’s third-largest economy is projected to grow 3.42% in the next fiscal year, which will run to March 2022, after shrinking 5.37% this fiscal year, according to an average of forecasts by 35 economists polled by the Japan Center for Economic Research. If the estimate is borne out, it would see a turnaround from the economy’s worst contraction to its highest growth since fiscal 1995, when comparative date became available.

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 decreased 99.75 points or -0.37% to 27,158.63
  • Shanghai increased 25.72 points or 0.73% to 3,528.68
  • Hang Seng increased 177.05 points or 0.64% to 27,649.86
  • ASX 200 decreased 2.30 points or -0.03% to 6,681.90
  • Kospi increased 46.12 points or 1.57% to 2,990.57
  • SENSEX increased 260.98 points or 0.54% to 48,437.78
  • Nifty50 increased 66.60 points or 0.47% to 14,199.50
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