HONG KONG (AP) – Asian markets were mostly higher yesterday, with Chinese markets logging gains of more than one per cent after the Chinese finance minister promised a more pro-active approach to government spending in the coming year.
United States (US) futures were little changed in quiet holiday eve trading and oil prices rose.
Japan’s benchmark Nikkei 225 slipped 0.3 per cent to 39,036.85.
Honda’s shares surged more than 12.2 per cent as the Japanese automaker announced an up to JPY1.1 trillion (USD7 billion) share buyback after it announced Monday that it was seeking a merger with its larger but troubled rival Nissan.
The two companies said they had signed a memorandum of understanding on Monday and that smaller Nissan alliance member Mitsubishi Motors Corp also had agreed to join the talks on integrating their businesses. Nissan’s shares rose six per cent.
The Hang Seng in Hong Kong added 1.1 per cent to 20,098.29 and the Shanghai Composite index was up 1.3 per cent at 3,393.53.
Chinese Finance Minister Lan Fo’an told a financial work conference that Beijing will increase the fiscal deficit in 2025 and step up spending, issuing more government bonds and increasing transfers to local governments to help ensure they can deliver guarantees to the public for housing, heating and food, according to the ministry’s website.
The comments were the latest by top leaders aimed at assuaging concern over the slowing growth of the world’s second-largest economy. South Korea’s Kospi lost 0.1 per cent to 2,440.52 as a report said consumer sentiment dropped sharply in December.
Elsewhere in Asia, Australia’s S&P/ASX 200 advanced 0.2 per cent to 8,220.90.
Taiwan’s Taiex gained 0.1 per cent, with shares in Taiwan Semiconductor Manufacturing Co, the world’s biggest computer chip maker, hitting a record high.
On Monday, the S&P 500 ended 0.7 per cent higher at 5,974.07. The Dow Jones Industrial Average eked out a 0.2 per cent gain to 42,906.95. The tech-heavy Nasdaq composite rose one per cent to 19,764.89.
The Conference Board said its consumer confidence index fell to 104.7 from 112.8 in November. Wall Street had been expecting a reading of 113.8.
The unexpectedly weak consumer confidence update followed several generally strong economic reports last week. One report showed the overall economy grew at a 3.1 per cent annualised rate during the summer, faster than what was thought earlier. The latest report on unemployment benefit applications showed the job market remains solid.
Inflation concerns have added to uncertainties heading into 2025, which include the jobs market and shifting economic policies under President-elect Donald Trump.
Wall Street has several economic reports to look forward to this week, including a weekly update on unemployment benefits tomorrow.
In other dealings early yesterday, US benchmark crude oil picked up 37 cents to USD69.61 per barrel.
