On Friday, the stock exchange in Tokyo continued the recovery from a day earlier. The major Japanese car manufacturers such as Toyota and Honda made significant progress thanks to a decline in the Japanese yen.
Also, the approval of the US Senate for the increase of the US government debt ceiling brought relief to investors. However, the fear that the US government would run out of money and the United States would no longer be able to meet all financial obligations caused unrest on the global stock markets earlier this week.
The Nikkei in Tokyo was 1.3 percent higher into the weekend at 28,048.94 points. The main index nevertheless lost more than 2 percent this week. A depreciation of the yen resulted in price gains for the major Japanese exporters, who are seeing their products cheaper abroad. As a result, Toyota and competitor Honda rose to more than 3 percent.
Eneos remained virtually unchanged. According to local media, Japan’s largest oil refinery is buying solar and wind energy producer Japan Renewable Energy for about 1.6 billion euros from the American investment bank Goldman Sachs and the investment fund GIC from Singapore.
In Shanghai, where investors returned after a week of vacation, the stock exchange traded 0.5 percent in the plus. Figures from market researchers Caixin and Markit showed that China’s services sector grew again in September, following the sector’s biggest contraction since the corona pandemic in August.
In Hong Kong, the Hang Seng index gained 0.1 percent after the strong recovery a day earlier. Investors are still waiting for developments around the ailing Chinese real estate group Evergrande. Trading in the stock has been suspended since Monday, pending important news from the company. Other Chinese real estate stocks fell on fears that the bankruptcy of Evergrande will cause a knock-on effect within the sector.
In South Korea, the Kospi lost 0.1 percent. Heavyweight Samsung fell 0.1 percent. The South Korean tech group saw profits rise 28 percent in the past quarter to its highest level in three years, thanks in part to strong demand for its foldable smartphone. However, investors had expected more. The company will release its full quarterly report later this month.