Nikkei Starts Higher to Last Week of 2020

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The Japanese stock market started the last week of the troubled 2020 corona year with a profit on Monday.

 

The news that US President Donald Trump has nevertheless signed the corona support package for the US economy caused investors relief. The further roll-out of the corona vaccine in Europe also supported the trade.

The main index in Tokyo, the Nikkei 225, ended up 0.7 percent higher at 26,854.03 points. Sharp was one of the biggest losers with a loss of more than 3 percent. The Japanese technology group said it suspected one of its subsidiaries of accounting irregularities.

In Hong Kong, Alibaba (minus 7 percent) fell again. Alibaba announced to increase its share buyback program from $ 4 billion to $ 10 billion. But it was also announced on Sunday that the Chinese government is imposing restrictions on the large payment service provider Ant Group.

Alibaba’s subsidiary must stop providing consumer credit and asset management services. Last Thursday, Alibaba was also significantly lowered after reports that the Chinese competition authority will investigate the online store group’s strong position of power.

The other major Chinese technology companies were also under pressure from fears that Beijing will also tackle them. Technology company Tencent, in which the Amsterdam-listed tech investor Prosus has a significant interest, fell nearly 5 percent.

The Hang Seng index in Hong Kong was 0.1 percent lower in the meantime, and Shanghai’s stock market remained virtually flat. The Kospi in Seoul fell 0.1 percent. The stock exchange was closed in Australia.

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