Asia Stock Market Weekly Gainers & Losers – 14th August 2024

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Following last week’s chaos in the market, investor fear has subsided, and the global market is regaining its footing. Lower-than-expected producer price index data in the US has increased hopes for a rate cut by the Fed in September, leading to a surge in stock prices in the US and affecting the Asian market. 

Uneven economic recovery in China, coupled with a lack of consumer spending and lagging industrial activity, continues to be a cause of concern for global growth recovery. This led to foreign investors pulling out a record $15 billion from China in the last quarter. 

Let’s look at how the top Asian indexes performed during the week. 

Nikkie 225

Nikkie 225 recorded last week’s worst fall of the decade, erasing all the gains from this year’s rally. However, the market recovered following positive commentary from the Bank of Japan and a surge in tech and finance stocks. 

In July, Japan’s producer price index increased by 3% yearly, outpacing the 2.9% increase in June. 

The week starting 12 August 2024, Nikkei 225 traded with a positive bias, as it got support from the improving sentiment of the global market. In the last week, the index has gained nearly 4.3%. But in the previous month, it has been down by 12.4%.

Looking at the daily chart of the Nikkei 225 index, we can see that after the massive fall, the index has quickly recovered and is moving towards the next significant resistance at around 37,000. If the current momentum persists, we may see more buying in the market. Below is strong support at the 34,000 level, tested recently, and the index bounced back from there. 

Contributions from all sectors, particularly Finance, Producer Manufacturing, Technology Services, and Electronic Technology, are increasing the market.

Following are the top gainers in the last one week

Stocks	Last 7 Days Gains (in %)
Mitsubishi Heavy Industries	22.57
Recruit Holdings Co Ltd	18.38
Sumitomo Mitsui Financial Group	18.22
Softbank Group Corp	15.70
Mizuho Financial Group	14.88

Hang Seng

Last week’s China’s inflation numbers fuelled hopes for increased demand. The annual inflation rate increased from 0.2% in June to 0.5% in July. Upward trends in consumer price inflation likely indicated an increase in private consumption and economic activity.

In the last week, Hang Seng has traded with positive momentum and has gained nearly 3%. 

As reported by Bloomberg, The persistent economic slowdown in China has worried investors and increased pessimism, prompting them to withdraw their funds. Foreign investors withdrew a record $15 billion from China in the fourth quarter (April-June 2024), the highest in recent years. 

Hang Seng continues to trade on a bearish note. The daily chart shows that the index has bounced higher after testing one of its major support levels at around 16,500. We may see more buying if the index breaks above its next significant resistance at the 17,150 level. 

Finance, Energy Minerals, and Technology Services are the major contributors to this week’s index gain.

The following are the top gainers from the last week. 

Stocks	Last 7 Days Gains (in %)
Industrial & Commercial Bk Of China	7.38
Cnooc Limited	6.84
PetroChina	5.17
Tencent	4.79
China Mobile	3.68

Nifty 50

Amid high valuation concerns and volatility in the global market, the Indian stock market continues to trade on a negative. Top indices like the Nifty 50 have failed to recover the prior week’s losses. In the last five trading sessions, the Nifty 50 is slightly lower by 0.52% and is down by nearly 3.74% from its peak. 

Looking at the daily chart of Nifty 50, the index trades closely above the 50-day moving average slope, providing support. The Nifty 50 needs to cover the gap with solid momentum to move higher. If it breaks the 50 DMA slope, the market may move much lower toward its next support at the 23,660 level. 

Unlike their Asian counterparts, the Finance, Non-Energy Minerals, and Communication sectors are the index’s worst performers. IT, Energy, Consumer Durable, and Nondurable stocks all support the index. 

The following are the top gainers in the last one week. 

Stocks	Last 7 Days Gains (in %)
ONGC	6.70
JSW Steel	4.71
Cipla	4.66
Coal India	2.69
Tech Mahindra	2.59

The following are the top losers in the last one week across various sectors:

Stocks	Last 7 Days Loss (in %)
BPCL	6.22
NTPC	4.13
Grasim	4.10
HDFC Life	3.77
State Bank of India	3.05

Conclusion

As we move forward, global markets seem to stabilize after last week’s chaos and extreme volatility, driven by optimism around a potential rate cut in the US. However, uncertainties remain. Investors should stay cautious and closely monitor economic indicators and central bank actions in the coming weeks.

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