Japanese stocks continued to advance after the economy grew at a better-than-expected rate, which reinforced optimism about the future performance of the markets. As for the other Asian benchmark indices, it recorded a mixed performance in trading today, Wednesday.
Japanese stocks led the gains of the main benchmark indices, after the Topix index closed at its highest level since 1990 on Tuesday. The country’s markets may be on the verge of a bullish wave, according to estimates by Goldman Sachs Group.
Wall Street strategists have cited reforms in the corporate sector and accommodative monetary policy as driving forces for Japanese equities, and some suggest that they could rise another 10%.
Japan’s government on Wednesday reported the fastest GDP growth in three quarters due to increased consumption as a result of further easing of COVID-19 controls.
Bruce Kirk, head of Japanese equity strategy at Goldman Sachs Group in Tokyo, said on Bloomberg TV that the Japanese stock market has the potential to become one of the sustainable emerging markets driven by monetary policy. Foreign purchases, the purchase of shares will really be concentrated on a very limited number of companies.”
Japan’s economic growth exceeds expected after a technical recession
Hong Kong stocks fell at the open as concerns persisted about the strength of the Chinese economy. Investors also awaited the announcement of business results from Tencent Holdings, and the tech giant is expected to record the highest increase in its quarterly revenue since 2021 due to a gradual recovery in spending and advertising.
Stocks advanced in South Korea and fell in Australia. And US stock futures rose in Asia after the “Nasdaq 100” index closed up by only 0.1% and the broader “Standard & Poor’s” index fell, after a rapid decline in the last minutes of the session.
President Joe Biden and House Speaker Kevin McCarthy were optimistic when asked about the possibility of reaching a debt ceiling agreement within days to end the deadlock before a possible US default.