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13.09.2021 03:49 PM
Asian stock markets show decline

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Asia-Pacific stock indices show a decline during the trading session on Monday. Japan's Nikkei 225 dropped by 0.3%, China's Shanghai Composite lost 0.2% and Hong Kong's Hang Seng Index declined by 2.2%. The Korean KOSPI fell by 0.5% and the Australian S&P/ASX 200 decreased by 0.01%.

Several factors have contributed to the decline in indicators. Asian countries have to imply new restrictions or tighten existing ones because of the delta variant spread.

Another factor is the 5.5% increase in Japan's producer prices, although experts had forecasted a higher increase of 5.6%. The increase is mainly influenced by the growth of the cost of raw materials. It affected the food industry the most, where prices rose by 2.9%, as well as the chemical industry (+12.2%) and metal industry (+13.1%).

Among the biggest Japanese companies, Toyota Motor Corp. and Isuzu Motors Ltd. lost the most in price, dropping 2.2% and 3.3%, respectively. Toyota Motor Corp. is facing serious difficulties in the microchips supply chain for the production of cars. In this connection, the company plans to reduce the volume of car production. In September, the company will be able to produce 70 thousand cars less than planned, and in October, 330 thousand cars less than planned. Annual vehicle production, which is projected at 9.3 million units, has been adjusted to 9 million vehicles under the new conditions.

In the Chinese markets, the securities of Internet companies continue to decline due to increased government regulation. New restrictions have been imposed on underage users of Internet platforms. Companies face severe penalties for violating the new regulations or attempting to circumvent them in any way.

China also plans to introduce new forms of tougher government regulation, which, according to the government, should help eliminate "unfair" competition in the sector. This decision was made after one of the largest companies (Alibaba) was hit with a huge antitrust fine of $2.7 billion.

This news had a downward impact on the value of securities of the largest Internet companies: Meituan shares fell by 7.3%, Alibaba Group Holding – by 6%, and Tencent Holdings Ltd. – by 4%.

Despite the decline of the South Korean indicator, the share prices of major companies, Samsung Electronics Co. and SK Hynix Inc., increased by 1% and 0.5%, respectively. At the same time, Hyundai Motor Co.'s stock price declined by 1%.

Along with the fall of the Australian index decreased the value of shares of the largest companies in the country: BHP Group by 0.1%, and Rio Tinto by 0.4%.

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