Stock Market

Chinese stocks went up on hopes for stimulus, and Berkshire’s stake in TSMC helped it.

Tuesday, Chinese stocks led Asia’s gains as investors awaited the government to implement additional economic stimulus measures to offset the effects of COVID-19 restrictions on the economy.In Taiwan, TSMC jumped after Berkshire Hathaway said it had a stake in the company.

The Shanghai Composite index went up 1.4%, and the Shanghai Shenzhen CSI 300 index went up 1.7%. Hong Kong’s Hang Seng index continued to do better than the rest of Asia with a 3.3% rise, and its nearly 20% rise from a 13-year low in October was close to confirming a bull market.

The People’s Bank of China did not change interest rates on Tuesday, but it did add a lot of liquidity to the market. This is because it is trying to keep the Chinese economy going even though growth is slowing.

Weak data on industrial production and retail sales that came out on Tuesday also made people more hopeful that the government would spend more to help the economy grow. In recent days, Chinese stocks went up because the government eased some restrictions on quarantine and movement that were part of its strict “zero-COVID” policy.

But because the country is now facing its worst outbreak in more than six months, it doesn’t look like restrictions will be lifted any time soon. But this could also make the government take more steps to help the economy.

Shares of Taiwan Semiconductor Manufacturing Corp (TW:2330), also known as TSMC, rose by more than 4% after Warren Buffet’s Berkshire Hathaway Inc (NYSE:BRKa) said it owned more than $4.1 billion in the world’s largest chipmaker.

The stock, which is also the biggest stock in the country, helped the Taiwan Weighted Index go up by almost 3%.

The move was also good for tech stocks in Asia as a whole, with Hong Kong and South Korea seeing the biggest gains.

But the Asian markets as a whole were mixed after the Federal Reserve sent some “hawkish” signals. Vice Chair Lael Brainard said that the central bank might think about smaller interest rate increases in the coming months, but it has no plans to stop raising rates.

Her words showed that U.S. interest rates are likely to keep going up in the near future and that they will soon be higher than they were during the financial crisis of 2008. Asian markets are likely to stay under pressure in this case.

Japan’s Nikkei 225 index stayed the same after data showed that the world’s third-largest economy unexpectedly shrank in the third quarter. This likely means that local stocks will be under more pressure.

The Nifty 50 index in India went down by 0.1%, while the KOSPI index in South Korea went up by 0.1%.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button