· These sectors are set to do well in 2021 if India can avoid a second wave of Covid
Several sectors including financial services could do well in India this year if the country manages to avoid a second wave of coronavirus infections, according to one asset management firm.
“If you have to look at 2021, we think financial services, home improvement and cyclical sectors will benefit if there is no surprise on the Covid-19 side,” Nilesh Shah, managing director of Kotak Mahindra Asset Management, told CNBC’s “Street Signs Asia” on Thursday.
Cyclical stocks are those tied to the overall economy, and they do well when the economy is growing but falter when it contracts. Examples include cement, steel, construction as well as capital goods.
Indian markets have performed relatively well in recent months following a sharp sell-off in March. That’s despite the economy contracting for two consecutive quarters since April due to an extensive national lockdown aimed at slowing the spread of Covid-19.
India has the second-highest number of reported Covid-19 infections in the world. More than 10.39 million people have been infected, with over 150,300 reported deaths, according to Johns Hopkins University data. But government figures indicate that the number of active infection cases has been falling.
· Nasdaq-listed Chinese electric scooter firm Niu Technologies jumps 16% after sales bump
Shares of Chinese electric scooter firm Niu Technologies surged nearly 16% on Thursday after the company reported a jump in sales of its products.
In the fourth quarter of 2020, Niu sold 149,705 e-scooters, growing 40.9% year-on-year.
In China, Niu sold 137,586 e-scooters, accounting for 91% of total sales. China sales jumped 35% year-on-year.
Niu sold 12,119 e-scooters in international markets in the fourth quarter, up 179.6% compared with the same period in 2019.
· Asian stocks soar to record highs on global recovery hopes
Asian shares vaulted to record highs on Friday and Japan’s Nikkei hit a three-decade peak as investors looked beyond rising coronavirus cases and political unrest in the United States to focus on hopes for an economic recovery later in the year.
U.S. S&P 500 e-mini stock futures also pointed to a cheery open on Friday, rising 0.51% to 3,815.
The upbeat mood came after Wall Street hit record highs on Thursday while bond prices fell as markets bet a new Democratic-controlled U.S. government would lead to heavy spending and borrowing to support the country’s economic recovery.
The buoyant mood lifted MSCI’s broadest index of Asia-Pacific shares outside Japan up 1.56%, touching a record high.
· Japan shares end at 30-yr peak as global reflation trade ignites rally
Japanese stocks surged on Friday to close at a 30-year high as expectations of more U.S. fiscal stimulus and rising bond yields set off a cascade of bets that global inflation will accelerate.
The Nikkei 225 Index ended 2.36% firmer at 28,139.03, closing at the highest since August 1990, with raw materials and technology shares leading the gains.
The broader Topix rose 1.57% to 1,854.94 to close at its highest since February 2018.
Global equities got a major boost after incoming U.S. President Joe Biden’s Democrats won control of the Senate that clears the path for his government to use big fiscal spending to stimulate the pandemic-ravaged economy.
The tech sector outlook has brightened after semiconductor makers Samsung Electronics Co Ltd and Micron Technology Inc forecast robust profit and revenue.
· China stocks snap six days of gains on Sino-U.S. tensions
China stocks closed slightly lower on Friday, with the blue-chip CSI300 index retreating from a 13-year high, as investors booked profits following a six-session rally amid worries over Sino-U.S. tensions.
The CSI300 index fell 0.3%, to 5,495.43, while the Shanghai Composite Index shed 0.2%, to 3,570.11.
The tech-heavy start-up board ChiNext eased 0.4%, while the STAR50 index slipped 0.2%.
For the week, CSI300 gained 5.5% and SSEC added 2.8% as investors cheered data and survey pointing to a continued recovery in the world's second-largest economy.
· European stocks set for strong week, Germany's DAX hits record high
European stocks rose on Friday, with Germany’s DAX hitting a record high on the back of better-than-expected economic data and encouraging earnings updates from chipmakers.
The pan-European STOXX 600 index rose 0.7% by 0810 GMT and was on track for a more than 3% weekly gain, with hopes of more U.S. stimulus boosting economically sensitive sectors such as miners, oil & gas and banks.
Germany’s DAX index jumped 0.8% after data showed both industrial output and exports rose more than expected in November.
Meanwhile, chipmakers Infineon, AMS and ASM International gained between 2.2% and 4.7% after global peers Micron Technology Inc and Samsung Electronics Co Ltd provided strong earnings reports.
Franco-Italian chipmaker STMicroelectronics rose 4% after its early revenue estimate for the fourth-quarter came in above the previous range.
Reference: CNBC, Reuters
Thai
Eng