Asian stocks close mixed amid concerns over intense heat in China

Stocks in Asia and the Pacific closed without a single direction on Friday (19), amid concerns about the impacts of an unusual heat wave on the Chinese economy and after a round of modest gains on Wall Street.

In mainland China, the Shanghai Composite was down 0.59% to 3,258.08 points and the less comprehensive Shenzhen Composite was down 1.28% to 2,207.99 points as a violent heat wave and power rationing in parts of the country have been shutting down factories and threatening crop yields.

“China is facing the most intense heat wave in six decades,” analysts at Commerzbank say in a note, adding that “this could be yet another negative news that jeopardizes hopes for a speedy recovery.”

Earlier this week, disappointing industry and retail data showed the Chinese economy was still feeling the effects of the latest Covid-19 outbreaks and prompted the local central bank to announce an unexpected interest rate cut at a time when most of the world has been tightening monetary policy to combat inflationary pressures.

Elsewhere in Asia, Japan’s Nikkei stock index was down 0.04% in Tokyo today at 28,930.33 points, and South Korea’s Kospi was down 0.61% in Seoul at 2,492.69 points, but the Hang Seng guaranteed a slight increase of 0.05% in Hong Kong, to 19,773.03 points, and the Taiex also presented a small gain in Taiwan, of 0.08%, to 15,408.78 points.

In Oceania, the Australian stock market was practically stable, with a marginal increase of 0.02% of the S&P/ASX 200, at 7,114.50 points, after a trading session in which commodities-linked stocks advanced and financial and health sector papers weakened. .

The mixed behavior in the Asia-Pacific region also came after New York stocks rose modestly yesterday, after positive data from jobless claims indicated that the US economy has pockets of resilience, despite repeated interest rate hikes. of the Federal Reserve (Fed, the American central bank).