Asia stocks opened slightly higher on Monday following a week-long selloff in equities and bonds. Investors would be awaiting U.S CPI data out later this week to find out if another bout of volatility is in store.
Hong Kong and China were in focus as Nikkei was closed for National Foundation Day holiday, but volatility is expected to be low ahead of the Chinese New Year Holiday. Hang Seng Index opened 0.2% higher while Shanghai Composite and Shenzhen Component also gained 0.2% and 0.1% respectively. Hong Kong-listed Geely Automobile Holdings Ltd (HK:0175) said its parent Zhejiang Geely would build a new energy vehicles (NEV) production base in east China at a cost of $5 billion.
While not a directional driver, China’s National Development and Reform Commission (NDRC) received some attention as it released a full list of sensitive sectors, including real estates, hotels and entertainment, where it plans to restrict outbound investment.
Reports in Japan suggested that Haruhiko Kuroda is likely to be reappointed Bank of Japan chief to another five-year term, as Prime Minister Shinzo Abe wanted aggressive stimulus and inflation to continue. Meanwhile, automotive parts company Takata Corp (OTC:TKTDQ) made headlines after it reached a US bankruptcy deal with its creditors and lawyers and will sell its viable operations. The company’s air bags were previously linked with 21 deaths and hundreds of injuries.
Elsewhere, the S&P/ASX 200 underperformed its regional peers and declined 0.4% in mid-morning trading with banks among the weakest performers at the start of the trading day.