Asian Markets Are Mixed: Nikkei Fell amid Trump’s Toyota Tweet



Economic calendar

8:30 AM EST – US non-farm payrolls (December)

8:30 AM EST – US participation rate (December)

8:30 AM EST – US trade balance (November)

8:30 AM EST – US unemployment rate (December)

10:00 AM EST – US factory orders (November)

1:00 PM EST – Baker Hughes’s US oil rig count

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After gaining for four consecutive trading days, China’s Shanghai Composite Index pulled back on January 6. The Shanghai Composite Index gained in first three days of the year. It reached the highest levels since December 9 amid supporting PMI data. According to data released by Markit, the China Caixin manufacturing PMI was 51.9 in December. It’s better than November’s reading of 50.9 and the market’s expectation of 50.7. The higher PMI was supported by increased production by Chinese manufacturers due to increased demand. The China Caixin services PMI rose to 53.4—the highest in 17 months.

On January 6, the Shanghai Composite Index closed the day at 3,154.32—a fall of 0.35%. The SPDR S&P China (GXC) closed at 74.78—a gain of 1.7% on January 5.

Hong Kong

After rising on January 5, Hong Kong’s Hang Seng Index closed Friday on a positive note. Recently, China’s better-than-expected services and manufacturing PMI supported the sentiment in Hong Kong’s markets. Also, the Chinese yuan fell after rising the previous day. It’s supporting the Hang Seng Index. On Friday, the Hang Seng Index rose 0.21% and closed the day at 22,503.01. The iShares MSCI Hong Kong (EWH) rose 1.9% to $20.3 on January 5.


After a slight pullback from 13-month highs, Japan’s Nikkei fell on January 6. Donald Trump tweeted that Toyota must face high taxes if it builds a new plant in Mexico to make Corolla cars for the US market. It weakened Toyota stocks and other major automobile manufacturers like Honda and Nissan on Friday. Trump’s tweet weighed on Nikkei. Nikkei fell 0.34% and closed the day at 19,454.33. The iShares MSCI Japan (EWJ) closed at 50.54—a gain of 0.58% on January 5.


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