Seoul and Tokyo weakened earlier in the week on US inflation concerns. Shanghai, on the other hand, strengthened

China

Asian stock markets were inconsistent at the start of the second week of February. On the one hand, there was nervousness on the markets shortly before the release of the US inflation data for January, while on the other hand, the effects of the arrival of the new lunar year, which kept the Shanghai stock exchange closed for several days, were felt.

Tokyo’s Nikkei index lost 0.7 percent on Monday, mainly due to a drop in shares of industrial firms. The industrial sector fell by one per cent, with chipmakers and transport companies also losing significantly. In Tokyo, on the other hand, financial or energy titles rose.

Trading was similar in Seoul, where the KOSPI index shed 0.19 per cent. Technology titles in particular lost ground, with Samsung down 1.35 percent. Both Tokyo and Seoul reacted to the upcoming January inflation data in the US, according to experts. If analysts’ estimates that inflation is still rising are confirmed, the likelihood that the Fed will raise interest rates more sharply will also rise. This could lead to a spillover of capital from Asia to the US, where asset yields will rise.

Nervousness has so far avoided the Shanghai stock exchange as it has returned to trading after the arrival of the new lunar year. There, the main CSI 300 index firmed 1.6 percent.

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