Dec 21, 2023: On Thursday, Asian stocks took a downturn as the fervor for potential rate cuts diminished. The Nikkei encountered a setback due to a Toyota scandal, contributing to losses across major indices in the region.
Japanese stocks, represented by the Nikkei 225, slid by 0.4% due to a Toyota scandal that emerged recently. The news had a substantial impact on the index, causing it to drop to nearly five-year lows. Meanwhile, the Shanghai Composite experienced a minor decline of 0.1%, and Hong Kong’s Hang Seng index suffered a more significant loss of 0.4%.
Chinese shares, in particular, faced considerable pressure due to concerns regarding a sluggish economic recovery. This year, they notably lagged behind other Asian markets. The sentiment toward China was dampened further by the staggered nature of stimulus measures implemented by Beijing.
Looking at India’s market, futures for the Nifty 50 index indicated a slightly positive start following a session where the index retraced from its near record highs. Despite this recent pullback, the Nifty continues to be among the top-performing Asian stock markets. It had previously achieved a string of record highs in December, fueled by growing optimism surrounding the Indian economy.
