Asian Market to End the Week Mixed with US Stimulus Concerns

The Asian market poses to end the week with mixed performance.

Investors are still digesting the announcement made earlier on President-elect Joe Biden’s $1.9 trillion stimulus package plan in the US.

Japan’s Nikkei 225 descends from the high incurred in two preceding trading sessions and shed off 0.27%.

This came after the index hit a 31-year high yesterday when it settled above 28,500 points.

On Thursday, it climbed by 241.67 points to 28,698.26 in the Tokyo Stock Exchange which is its highest settlement since August 3, 1990.

On the other hand, the Topix index managed to gain for the day and added 8.88 points, translating to a 0.85% increase.

The bourse currently trades at 1,873.28 after six consecutive sessions of gains.

Meanwhile, its neighbor KOSPI shed off 1.84%. The South Korean index weathered the extremes after experiencing highs and lows during the week.

On the other hand, Australia’s S&P ASX 200 cheered on Biden’s announcement and extended gains from the previous session. 

It instantaneously added 0.2% as the news circulated the market, capping its third straight day of win and settled at 6,736 points.

Chinese stocks are mixed over the new turmoil between the United States and China. 

In the recent developments, the Trump administration decided to add more firms to the blacklist including smartphone giant Xiaomi and China National Offshore Oil Corp.

This is amid the allegations of their involvement in the Chinese military which the government denied.

The decision briefly hurt the Shanghai Composite Index as it gained by 0.59% while the Shenzhen Component fell by 0.83%.

In Hong Kong, the Hang Seng managed to make a conservative run during the session and hiked by 0.05%.

Wall Street’s Response on Biden’s Decision

Wall Street closed the day with losses as investors remain skeptical of the outcome of the generous new stimulus measures.

Consequently, the release of lukewarm job data added to the apprehension. 

The result showed higher than expected figures on new unemployment benefits claimants, undermined by a growing number of infections in the United States.

The successive setbacks sent the Dow Jones Industrial Average to slash 0.22%, translating to 68.95 points. The bourse ended the day with 30,991.52 points.

Following the downward trend, the S&P 500 fell by 0.35% to 3,795.54 points.

Currently, investors are waiting for the earnings report by financial juggernauts. This includes JP Morgan, Citibank, and Wells Fargo, all due later in the day.