Tokyo (awp/afp) – Securities linked to semiconductors climbed sharply on Tuesday in Asian trade, after the exemptions provided by the United States in their restrictions targeting the export of chips to China, while the yen caught its breath after a sharp start from the day before.
The chips are climbing, the announcements from Washington reassure
The United States has further restricted the export to China of semiconductors and equipment to manufacture them – even if the scope of this announcement was reduced one month before the departure of President Joe Biden. Export controls will include 24 types of chip manufacturing equipment.
However, exceptions for companies from key allies like Japan and the Netherlands are planned, and the Chinese electronic chip manufacturer CXMT is not included in the American list establishing export restrictions for 140 companies in China.
So many signals which reassured investors and caused the shares of firms linked to the sector to rise sharply on the Asian stock exchanges – outside China.
“The new rules are expected to exclude Japan (from the restrictions), which has stimulated the recovery of shares of value-added semiconductor companies,” pointed out experts from broker IwaiCosmo.
In Tokyo, the star company Tokyo Electron – spared by Washington – jumped 4.27%, in unison with its compatriots Screen Holdings (+4.14%) and Advantest (+3.90%).
In Seoul, SK Hynix soared 3.84% around 07:00 GMT, and in Taipei, the advanced chip behemoth TSMC climbed 1.93%.
Chinese stock markets are resisting
Chinese markets held up despite Washington’s tougher tone on semiconductors, in a market that anticipated such announcements and awaiting actions from Beijing to continue to strengthen the local chip industry – and support the economy more generally.
Around 07:00 GMT, the Hang Seng index on the Hong Kong Stock Exchange gained 0.65% to 19,677.79 points. The Shanghai composite index advanced 0.40% to 3,377.40 points and that of Shenzhen lost 0.14% to 2,049.47 points.
Chinese markets remained relatively strong after the publication this weekend of figures showing an increase in manufacturing activity in the country in November, for the second consecutive month.
Above all, the Chinese government could outline its recovery plans for 2025 during a political meeting starting on Wednesday.
“As the policies (of economic recovery undertaken by Beijing) take effect, manufacturing expansion could well accelerate, and potentially benefit stock indices in Hong Kong as well as in mainland China,” pointed out experts from Hang Seng Bank.
Tokyo strengthened by tech and the decline of the yen
The Japanese currency fell sharply again against a reinvigorated greenback: around 07:00 GMT, it lost 0.22% to 149.93 yen per dollar.
The yen briefly jumped on Monday following statements by Bank of Japan (BoJ) Governor Kazuo Ueda reinforcing the likelihood of a hike in his institution’s key rates in December.
But it bowed again in the face of the asserted strengthening of the dollar, a refuge currency in the face of political uncertainties fueled by customs threats from American President-elect Donald Trump and the scenario of a fall of the French government, according to MUFG analysts.
Conversely, the Tokyo Stock Exchange benefited from this weakening of the yen, which benefits exporting companies: the flagship Nikkei index closed up 1.91% to 39,248.86 points and the broader Topix index by 1 .43% to 2,753.58 points.
Large exporting groups rose, like Hitachi (+1.62%) and Toyota (+1.57%).
And the ready-to-wear giant Fast Retailing (Uniqlo), heavyweight on the Nikkei, rebounded significantly (+2.49%): the stock had plunged the day before amid concerns about a possible boycott in China after its leader declared not to use cotton from Xinjiang.
A survey pointing to a clear increase in profits in the non-manufacturing sector over July-September, “thanks to solid performance in services” was also “reassuring for securities linked to domestic consumption”, noted Tokai Tokyo Securities.
Slight increase in oil
Oil prices were rising in a relatively sluggish market, torn between the fear of seeing the OPEC+ alliance increase its production and the good Chinese manufacturing indicators which could portend increased demand.
Around 07:00 GMT, the price of a barrel of West Texas Intermediate (WTI) rose 0.40% to $68.37, and that of Brent from the North Sea rose 0.47% to $72.17.
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