Hang Seng Index edges down, Nikkei 225 hits 3-month high
The Hang Seng Index closed lower, while the Nikkei 225 soared to a three-month high on Wednesday.
Hang Seng Index: +2.77% for the week
Hong Kong equity benchmark Hang Seng Index edged lower on Wednesday 27 May 2020, closing the day slightly down by 0.36% at just under 23200 points, amid a fresh round of protests.
Earlier today, some 1000 protestors took to the streets of Hong Kong’s central business district during lunch hour in response to the Chinese government’s proposed national anthem law. Law enforcers reportedly arrested about 180 rioters for ignoring warnings against illegal gatherings.
The Hang Seng had started the day on a strong note, rallying over 1% within the first 15 minutes of the market opening to an intra-day high of 23510. However, as the protests intensified, so did the HSI’s decline.
On Tuesday 26 May 2020 at 22:30 SGT, the index was able to break through a two-day resistance mark of 23090 to trade at around the 23500 mark.
The Hang Seng Index fell as much as 5%, after it was reported last Friday that the Chinese government was planning to pass a new national security bill ‘on establishing and improving the legal system and enforcement mechanisms for the Hong Kong Special Administrative Region to safeguard national security’.
The index is up 624.4 points or 2.77% so far this week.
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Nikkei 225 Index: +3.98% for the week
Japan’s main stock barometer Nikkei 225 closed Wednesday’s session on a three-month high, as it spiked up 274 points (1.3%) alone on the day.
The Nikkei has been rising this week, thanks to a new stimulus package reportedly worth 117 trillion yen (US$1.1 trillion) that is currently in the process of being put together by the Japanese government.
This latest package – the second in as many months, will include 33 trillion yen (US$306 billion) in direct spending, according to a budget draft seen by Reuters.
This brings the total amount of money pumped into the Japanese economy since the outbreak of the Covid-19 pandemic to 234 trillion yen (US$2.18 trillion) – roughly 40% of Japan’s gross domestic product.
So far this week, the Nikkei is up 823.5 points or 3.98%. IG’s after-hours futures price estimates show that the index is currently trading at 21688 points.
Top-performing stocks on the Nikkei 225 index on Friday were: Metals manufacturer Dowa Holdings (+10.57%); Mitsui Engineering & Shipbuilding (+7.17%); and automobile manufacturer Isuzu Motors (+7.08%).
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