Asia-Pacific stock exchanges mostly exhibited negative dynamics on Friday morning. Major stock indexes decline due to problems that have accumulated over the past time. Investors are particularly concerned about the fate of the financial incentive program in the United States. So far, no general solution has been found and there are still enough controversial issues. However, one thing is already clear: the planned amount of financial injection will be equal to $900 billion. Among the main items of expenditure are payments to citizens in the amount of $600, as well as surcharges to unemployment benefits by $300 weekly. In addition, it is planned to provide assistance to small businesses and airlines, but it is not yet known to what extent. One way or another, all these measures are still not ratified, no official documents have been signed, which raises concerns among market participants, who have long been preparing for the appearance of this package of incentives.
Japan's Nikkei 225 index is down 0.23%. According to the latest data received the day before, the country's Central Bank decided to extend the validity of a special loan program for those organizations that have been hit particularly hard by the coronavirus pandemic. For another six months, companies can use loans on special preferential terms. At the same time, the regulator also left the short-term interest rate on deposits of commercial banks unchanged. Recall that its level still remains in the region of 0.1% per annum. There were no changes in the yield of the country's government bonds with a redemption period of ten years which remains at 0%.
Moreover, the Bank of Japan has expressed its intention to restructure the program of buying commercial sector securities and corporate bonds in such a way as to make it more flexible. For this purpose, an additional £15 trillion will be allocated from the available tranche amounting to £20 trillion.
Meanwhile, there are mixed statistics on the country's economy. In particular, the level of consumer prices in the country for the last month of autumn decreased immediately by 0.9%. This happened after a decline of 0.4% in the previous period. At the same time, neither analysts nor market participants were ready for such significant subsidence, and it has become significant for more than a decade.
China's Shanghai Composite Index sank 0.48%. Hong kong's Hang Seng Index followed the trend and fell 1.09%.
South Korea's KOSPI index, on the other hand, was among those who are increasing their positions. It added 0.12%.
The Australian S&P/ASX 200 index supported the negative dynamics and dropped 1.2%.
Meanwhile, a positive trend dominates on European stock exchanges on Friday morning. Major stock indices rise despite the fact that the situation between the UK and the EU over Brexit is only getting worse. The likelihood of reaching a full agreement between the parties before the end of the transition period is practically zero. There are still a lot of disagreements, and the parties do not seek to actively overcome them in the near future.
However, there are also positive aspects for investors which are primarily associated with hopes for the approval of a drug against coronavirus infection and the start of mass vaccination.
The general index of large enterprises in the European region Stoxx Europe 600 rose by 0.15% and reached 397.88 points.
The UK FTSE 100 Index jumped 0.53%. The German DAX Index rose 0.39%. France's CAC 40 index rose 0.15%. Italy's FTSE MIB Index added 0.25%. In contrast, Spain's IBEX 35 Index parted from 0.39% and became the only indicator with negative dynamics in the region on Friday.