- Scott Peters
- 22 Jan, 2024
- New York City
Sunoco declined 6.2% to $55.77 after the automotive fuel distributor agreed to acquire NuStar Energy, in an all-equity transaction valued at $7.3 billion.
NuStar soared 20% to 15.9% to $20.91.
NuStar common unitholders will receive 0.4 Sunoco common units for each NuStar common unit, implying a 24% premium based on the 30-day volume-weighted average price of both NuStar and Sunoco as of January 19, 2024.
Sunoco said it has secured a $1.6 billion one-year bridge term loan to refinance NuStar's purchase and assume its debt.
Boeing decreased 1.3% to $212.15 after the Federal Aviation Administration expanded its inspection of door plug design on the 737 900-ER.
The FAA ordered an investigation after, earlier in the month, a 737 Max 9 plane used by Alaska Air Flight blew off a door midflight.
The government agency expanded the probe from the 737 Max 9 because the same door plug design is used in the 737 900-ER model.
Macy's Inc. increased 4.3% to $18.39 after the department store chain rejected a $5.8 bid by a consortium of investors, citing the offer was not financially attractive and lacked credible financing.
Ark House and Brigade Capital Management proposed to acquire shares in the company for $21 per share.
Archer Daniels-Midland plunged 15% to $58 after the company said it placed its chief financial officer, Vikram Luthra, on administrative leave amid an accounting practices investigation.
The company also offered a weaker-than-expected fourth-quarter earnings outlook.
- Barry Adams
- 22 Jan, 2024
- New York City
Benchmark indexes on Wall Street attempted to build on the previous week's gains after the tech stock rally pushed indexes into the positive zone.
The S&P 500 index and the Nasdaq Composite index gained sharply in Friday's trading after AI-related enthusiasm led semiconductor stocks to new highs.
Investors have shifted their attention to the latest data on the economy, labor market, and inflation after weeks of debating about the number and timing of rate cuts this year.
The S&P 500 index jumped to a new intraday and end-of-day high after two years in Friday's trading.
Last week, U.S. market indexes advanced amid heightened volatility, and investors focused on a slew of positive economic data in the last two weeks.
Moreover The retail sales report in December signaled resilient consumer spending, adding to the strong labor market conditions and weakening inflation level reported in the previous two weeks and providing another lift to market indexes.
However, existing home sales dropped to a 13-year low in December amid high home prices and elevated mortgage rates as buyers struggled to find properties.
On the international front, the Bank of Japan is scheduled to announce its rate decision on Tuesday, and the European Central Bank is set to announce its monetary policy details on Thursday.
Both central banks are expected to hold rates steady, and the People's Bank of China held its reference rates steady today.
The central bank left its one-year loan prime rate at 3.45% and the 5-year reference rate used for mortgage loans at 4.2%.
The ongoing property market woes and the lack of strong policy action from the People's Bank of China pushed the Hang Seng index down more than 2% and extended 2024 losses to 10%.
U.S. Indexes and Yields
The S&P 500 index increased 0.4% to 4,889.75, and the Nasdaq Composite rose 0.7% to 15,301.028.
The yield on 2-year Treasury notes increased to 4.39%. 10-year Treasury notes advanced to 4.09%, and 30-year Treasury bonds edged up to 4.30%.
WTI crude oil increased $0.20 to $73.45 a barrel, and natural gas prices decreased 14 cents to $2.37 a thermal unit.
Gold increased by $1.25 to $2,027.17 an ounce after declining in the previous week following the general strength in the U.S. dollar.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.13.
U.S. Stock Movers
Boeing decreased 1.3% to $212.15 after the Federal Aviation Administration expanded its inspection of door plug design on the 737 900-ER.
The FAA ordered an investigation after, earlier in the month, a 737 Max 9 plane used by Alaska Air Flight blew off a door midflight.
The government agency expanded the probe from the 737 Max 9 because the same door plug design is used in the 737 900-ER model.
Macy's Inc. increased 4.3% to $18.39 after the department store chain rejected a $5.8 bid by a consortium of investors, citing the offer was not financially attractive and lacked credible financing.
Ark House and Brigade Capital Management proposed to acquire shares in the company for $21 per share.
Archer Daniels-Midland plunged 15% to $58 after the company said it placed its chief financial officer, Vikram Luthra, on administrative leave amid an accounting practices investigation.
The company also offered a weaker-than-expected fourth-quarter earnings outlook.
- Inga Muller
- 22 Jan, 2024
- Frankfurt
European markets advanced in cautious trading ahead of the monetary policy decision from the European Central Bank on Thursday.
The DAX index increased 0.5% to 16,634.48, the CAC-40 index rose 0.5% to 7,410.28, and the FTSE 100 index inched up 0.1% to 7,468.16.
The yield on 10-year German bonds edged down to 2.26%; French bonds inched lower to 2.81%; the UK gilts edged lower to 3.89%; and Italian bonds inched lower to 3.84%.
Credit Agricole added 0.7% to €13.32 after the French bank said it acquired a minority 7% stake in payment and transaction processing services provider Worldline SA.
Worldline increased 3.7% to €13.60. and the terms of the transaction were not disclosed.
Kindred Group PLC jumped 16.7% to kr121.85 after the online gambling company confirmed it received a takeover proposal from La Francaise des Juex, valuing the company at €2.45 billion.
La Francaise des Juex added 5.9% to €36.40.
Bodycote PLC jumped 4.3% to 621.75 pence after the heat treatment and thermal processing company provider said it plans to repurchase up to £60 million of its own shares.
Endeavour Mining PLC decreased 1.7% to 1,360.0 pence, despite the gold mining company estimating 2024 production to increase by 18%.
SDI Group PLC dropped 7.4% to 75.0 pence after its chief executive, Mike Creedon, stepped down on January 19.
Sandoz Group AG gained 1.9% to CHF 28.56 after the Swiss generic and biosimilar medicine maker announced to acquire ranibizumab CIMERLI from Coherus BioSciences, Inc. for an initial payment of $170 million with additional milestone-based payments.
The drug is used to treat macular degeneration in the retina, leading to progressive loss of vision.
- Bridgette Randall
- 22 Jan, 2024
- Frankfurt
European markets advanced, and investors debated the rate path and economic outlook in the current year.
Benchmark indexes in Frankfurt, London, and Paris gained, and investors looked ahead to the rate decision from the European Central Bank on Thursday.
In Friday's trading, market indexes in New York jumped more than 1%, and the tech-heavy Nasdaq Composite index soared 1.7% after investors bid up semiconductor and mega-cap tech stocks.
In Monday's trading in Europe, ASML gained 1.5% and Infineon added 1.0%.
Last week, European markets declined between 1% and 2% after the European Central Bank’s policymakers pushed back aggressively against the market's enthusiasm for rate cuts in the near future.
Moreover, Germany, the largest economy in the eurozone, reported that GDP contracted in 2023, keeping the prospect of a recession alive.
However, passenger car registration rose 14% to 10.5 million in 2023 in the European Union despite rising interest rates and consumers avoiding discretionary items amid elevated inflation.
The European Central Bank is widely anticipated to hold rates steady at the end of its policy meeting on Thursday, and policymakers are likely to stress that inflation is too high and that higher rates for longer are still needed to bring down inflation to the target rate of 2%.
Europe Indexes and Yields
The DAX index increased 0.5% to 16,634.48, the CAC-40 index rose 0.5% to 7,410.28, and the FTSE 100 index inched up 0.1% to 7,468.16.
The yield on 10-year German bonds edged down to 2.26%; French bonds inched lower to 2.81%; the UK gilts edged lower to 3.89%; and Italian bonds inched lower to 3.84%.
The euro edged lower to $1.089, the British pound inched higher to $1.270, and the U.S. dollar gained to 86.80 Swiss cents.
Brent crude advanced $0.17 to $78.77 a barrel, and the Dutch TTF natural gas decreased by €1.49 to €26.94 per MWh.
Europe Stock Movers
Credit Agricole added 0.7% to €13.32 after the French bank said it acquired a minority 7% stake in payment and transaction processing services provider Worldline SA.
The terms of the transaction were not disclosed.
Kindred Group PLC jumped 16.7% to kr121.85 after the online gambling company confirmed it received a takeover proposal from La Francaise des Juex, valuing the company at €2.45 billion.
Bodycote PLC jumped 4.3% to 621.75 pence after the heat treatment and thermal processing company provider said it plans to repurchase up to £60 million of its own shares.
Endeavour Mining PLC decreased 1.7% to 1,360.0 pence, despite the gold mining company estimating 2024 production to increase by 18%.
SDI Group PLC dropped 7.4% to 75.0 pence after its chief executive, Mike Creedon, stepped down on January 19.
Sandoz Group AG gained 1.9% to CHF 28.56 after the Swiss generic and biosimilar medicine maker announced to acquire ranibizumab CIMERLI from Coherus BioSciences, Inc. for an initial payment of $170 million with additional milestone-based payments.
The drug is used to treat macular degeneration in the retina, leading to progressive loss of vision.
- Arjun Pandit
- 22 Jan, 2024
- Mumbai
Asian markets diverged in Monday's trading in a familiar pattern, with the indexes in Japan trading higher following the gains in New York and foreign investors accelerated sale of Chinese stocks.
Market indexes in Japan advanced following the rise in tech stocks in New York, and in China, investors continued selling stocks after the People's Bank of China held its 1-year and 5-year rates as expected.
The Nikkei index in Tokyo advanced 1.5% to 36,517.84, another new 34-year high, after tech stocks powered the rally following a rise in New York in overnight trading.
SoftBank advanced 2%, Fast Retailing gained more than 1%, Toyota Motor gained 0.5%, and Honda Motor advanced 1.6%.
Tech sector stocks were among the leading gainers, with Tokyo Electron, Advantest, and Screen Holding gaining between 2% and 4%.
Mitsubishi UFJ Financial, Sumitomo Mitsui Financial, and Mizuho advanced between 0.3% and 1%.
China Stocks Extend Losses, Hang Seng Down 10% In 2024
The one-year loan prime rate was held steady for the fifth month in a row at 3.45%, and the 5-year loan prime rate used for mortgage rates was maintained for the seventh month in a row at 4.2%.
The Hang Seng index declined 2% to 14,932.18 in Monday's trading after the central bank failed to announce stimulus measures to revive the moribund property market.
The Hang Seng index is down more than 10% from the start of the year, its worst performance in January since 2016.
Baidu declined 3.5%, Tencent fell 2.5%, BYD declined 1.9%, and Li Ning dropped 6.5%.
Foreign investors continue to sell China stocks, keeping pressure on China indexes, as the government shows no sign of offering additional economic stimulus and consumer spending growth remains weak after the ending of COVID-19 restrictions.
So far in 2024, foreign investors have sold more than $4 billion of Chinese stocks, extending the total sale to $26 billion in the last six months, according to data available from Stock Connect.
India Stocks Advanced In Special Session On Saturday
Stocks in Mumbai advanced on Saturday in a special session, and financial markets are closed Monday to celebrate Ram Mahotsav.
The Sensex index gained 0.3% and the Nifty index advanced 0.5% in a shortened session on Saturday following the surge in overnight trading in New York.
The S&P 500 index jumped more than 1% and the Nasdaq Composite gained 1.7% after mega-cap tech stocks rebounded and investors overlooked rate path uncertainties.
Investors bid up stocks of banks, tech and financial services providers, and automotive sector stocks.
The Sensex index increased 236.79 points to 71,423.65, and the Nifty index rose 109.55 points to 21,571.80.
On the Mumbai stock exchange, 474 stocks traded at their 52-week highs and 9 stocks traded at their 52-week lows.
- Arjun Pandit
- 22 Jan, 2024
- Mumbai
Stocks in Mumbai traded higher on Saturday and banks were in focus after reporting positive results.
The Sensex index increased 236.79 points to 71,423.65, and the Nifty index rose 109.55 points to 21,571.80.
On the Mumbai stock exchange, 474 stocks traded at their 52-week highs and 9 stocks traded at their 52-week lows.
Reliance Industries declined 0.7% to ₹2,716.0 after the diversified conglomerate reported weaker-than-expected quarterly results.
Revenue in the December quarter rose 3.9% to ₹2.25 lakh crore and net income soared 9.3% to ₹17,265 crore.
CanFin Homes declined 1.7% to ₹768.90 after the housing financing company reported quarterly results.
Revenue in the December quarter soared 27.1% to ₹901.93 crore, and net income advanced 32% to ₹200.1 crore from ₹151.5 crore a year ago.
IDBI Bank soared 12.2% to ₹77.70 after the company reported quarterly results.
Revenue in the December quarter increased 23.4% to ₹7,514.3 crore, and net income jumped 57.3% to ₹1,458.2 crore from ₹927.3 crore a year ago.
Kotak Mahindra Bank gained 1.8% to ₹1,810.0 after the company reported quarterly results.
Net interest income on a standalone basis rose 15.9% to ₹6.554 crore, and net profit soared 7.6% to ₹3,005 crore.
The net interest margin was unchanged at 5.2% from the previous quarter.
CEAT Ltd. soared 14.1% to ₹2,889.0 after the tire maker launched steel radial tires for two-wheeler vehicles.
The company plans to sell premium tires in the aftermarket and to original equipment makers.
Hindustan Unilever dropped 3% to ₹2,470.0 after the consumer products maker reported weaker-than-expected quarterly results.
Revenue in the December quarter decreased 0.3% to ₹15,294 crore and consolidated net income inched higher 1.4% to ₹2,509 crore from ₹2,474 crore a year ago.
Ganesh Housing soared 29.3% to ₹663.60 after the Amdavad-focused real estate company reported a sharp jump in quarterly earnings and revenue.
Revenue in the December quarter soared 172% to 1,833 crore and net income advanced 232% to 100.60 crore.
The debt-free company plans to develop several residential projects in the 500 acres held by the company in greater Amdavad region.
ICICI Bank rose 2.5% to ₹1,011.50 after the financial services provider was in focus ahead of the company's quarterly results later today.
- Barry Adams
- 19 Jan, 2024
- New York City
Stocks gained in early trading on Friday as investors piled into mega-cap stocks.
A tech-powered rally on Thursday supported a broader advance as investors continue to believe that strong economic labor market conditions are helping the Federal Reserve engineer a soft landing while attempting to lower inflation to 2%.
The S&P 500 index and the Nasdaq Composite are set to wipe off losses in the year so far.
Stocks have been on an upswing since October 2023, and mega-cap tech and semiconductor stocks have led gains, but stocks in other sectors have lagged behind the market advance.
Investors are hoping that the market rally will broaden to include more sectors once the Federal Reserve pivots to lowering interest rates.
So far, investors have built expectations of as many as six interest rate cuts of 25 basis points in 2024, and if those expectations of rate cuts are not met, then market indexes are likely to face sharp headwinds.
U.S. Indexes and Yields
The S&P 500 index increased 0.5% to 4,831.05, and the Nasdaq Composite rose 0.8% to 15,196.05.
The yield on 2-year Treasury notes increased to 4.36%. 10-year Treasury notes advanced to 4.13%, and 30-year Treasury bonds edged up to 4.36%.
WTI crude oil decreased $0.27 to $73.76 a barrel, and natural gas prices decreased 6 cents to $2.63 a thermal unit.
Gold increased by $11.35 to $2,033.87 an ounce, and investors debated the future interest rate path.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.33.
U.S. Stock Movers
Super Micro Computer soared 12% to $349.76 after the information technology company said strong demand for its rack-scale AI and total IT solutions is driving its sales and earnings ahead of its previous guidance.
Sales in the fiscal second quarter ending in December are likely to be in the range of $3.6 billion and $3.65 billion, ahead of its previous estimates of $2.7 billion and $2.9 billion.
GAAP diluted earnings per share are expected to be between $4.90 and $5.05, compared to its previous estimate of between $3.75 and $4.24.
iRobot Corporation plunged 37% to $14.81 after the European Union's antitrust agency is expected to block Amazon's purchase of the popular home vacuum cleaners.
The news was reported by the Wall Street Journal, citing unnamed officials at the agency.
Wendy's Company increased 0.7% to $19.40 after the fast food chain operator named PepsiCo executive as its next chief executive.
Kirk Tanner heads the North American beverage business of PepsiCo and has been with the company for more than three decades.
Meta Platform gained 1% to $380.0, and Nvidia jumped 1.8% to $581.30 after Meta's CEO, Mark Zuckerberg, said the company is spending billions of dollars to support its artificial intelligence efforts.
Zuckerberg, without elaborating on its purchase dollar volume, said that the company is planning to purchase 350,000 H100 graphics cards from Nvidia in the current year.
- Scott Peters
- 19 Jan, 2024
- New York City
Super Micro Computer soared 12% to $349.76 after the information technology company said strong demand for its rack-scale AI and total IT solutions is driving its sales and earnings ahead of its previous guidance.
Sales in the fiscal second quarter ending in December are likely to be in the range of $3.6 billion and $3.65 billion, ahead of its previous estimates of $2.7 billion and $2.9 billion.
GAAP diluted earnings per share are expected to be between $4.90 and $5.05, compared to its previous estimate of between $3.75 and $4.24.
iRobot Corporation plunged 37% to $14.81 after the European Union's antitrust agency is expected to block Amazon's purchase of the popular home vacuum cleaners.
The news was reported by the Wall Street Journal, citing unnamed officials at the agency.
Wendy's Company increased 0.7% to $19.40 after the fast food chain operator named PepsiCo executive as its next chief executive.
Kirk Tanner heads the North American beverage business of PepsiCo and has been with the company for more than three decades.
Meta Platform gained 1% to $380.0, and Nvidia jumped 1.8% to $581.30 after Meta's CEO, Mark Zuckerberg, said the company is spending billions of dollars to support its artificial intelligence efforts.
Zuckerberg, without elaborating on its purchase dollar volume, said that the company is planning to purchase 350,000 H100 graphics cards from Nvidia in the current year.
Wayfair increased 8% to $55.0 after the online furniture retailer said it plans to lay off 1,650 staff, or 13% of its global staff, as a part of its restructuring.
The third restructuring, in less than two years, is expected to save the company about $280 million.
Macy's Inc. decreased 1% to $17.75 after the department store operator said it plans to close three stores and lay off 2,300 of its staff as the company looks to improve its lagging sales growth and turnaround its business performance.
Ally Financial soared 8.8% to $34.61 after the company reported better-than-expected quarterly results.
Net financing revenue in the fourth quarter decreased to $1.5 billion from $1.7 billion, net income dropped to $49 million from $256 million, and diluted earnings per share fell to 45 cents from $1.08 a year ago.
The financial services company attracted 52,000 net new customers and increased its retail deposits from the previous quarter by $2.2 billion.
In 2023, the company issued 13.8 million auto loans, and about 40% of the loans were issued at an origination yield of 10.7%.
Regions Financial increased 2.7% to $18.43 after the bank reported a decline in quarterly profit.
Net interest income in the December quarter declined to $1.2 billion from $1.4 billion, net income dropped to $367 million from $660 million, and diluted earnings per share fell to 39 cents from 70 cents a year ago.
The company paid a special charge of $147 million from the FDIC related to the regional banking crisis in 2023.
Net interest margin at the end of the fourth quarter declined to 3.6% from 3.99%, and the tier-1 capital ratio increased to 11.5% from 10.9% a year ago, respectively.
- Inga Muller
- 19 Jan, 2024
- Frankfurt
European markets advanced for the second day in a row and bond yields rebounded.
Investors shifted their attention away from the rate path debate and focused on the flood of economic reports and corporate news released this week.
The DAX index increased 0.4% to 16,638.77, the CAC-40 index rose 0.4% to 7,429.14, and the FTSE 100 index increased 0.5% to 7,499.01.
The yield on 10-year German bonds edged up to 2.31%; French bonds inched higher to 2.84%; the UK gilts edged lower to 3.91%; and Italian bonds held at 3.90%.
BASF SE increased 0.4% to €43.68 after the German chemical company estimated a swing to a net income of €225 million in 2023.
Deliveroo PLC decreased 0.7% to 133.60 pence after the UK-based food delivery company said 2023 earnings are expected to be slightly ahead of its estimate.
4imprint Group soared 14.4% to 5,300.0 pence after the direct seller of promotional products said its sales and earnings for the full year are likely to exceed the previous year.
Richemont gained 0.6% to CHF 116.80, and the Swiss luxury goods company advanced for the second day.
In the previous session, stock soared more than 10% after December quarter sales jumped 8% to €5.6 billion, ahead of analyst expectations.
Banks were in focus after rate-cut hopes receded this week.
UBS, Barclays, Deutsche Bank decreased between 0.1% and 1.5% but Banco Santander, UniCredit, and Societe Generale gained between 0.2% and 0.4%.
- Bridgette Randall
- 19 Jan, 2024
- Frankfurt
European markets advanced for the second day in a row in Friday's trading, and bond yields edged higher.
Investors shifted their attention to the latest economic data after a week of hawkish comments from policymakers pushing against the rate-cut narrative.
Investors are also awaiting comments from European Central Bank president Christine Lagarde delivered at a gathering of political and business leaders in Davos, Switzerland.
Lagarde is expected to reiterate the need to keep higher interest rates for longer until inflation is on a sustained path towards the 2% level.
German Producer Price Declined Sixth Consecutive Month
The German producer price index declined for the sixth month in a row in December after energy prices declined.
Producer prices declined 8% in December after falling at a 7.9% annual rate in the previous month, Destatis reported Friday.
Energy prices declined 23.5% and electricity prices fell 35.6%, driving fertilizer prices down by 37.3%.
On the other hand, prices of consumer durable goods increased by 3.2%, food prices rose by 2.8%, and capital goods advanced by 3.9%.
In all of 2023, producer prices decreased by 2.4%.
UK Retail Sales Decline Raises Recession Risk
UK retail sales declined the most in nearly three years in December from the previous month, the Office for National Statistics reported Friday.
Retail sales in December declined 3.2% from the previous month, reversing the 1.4% gain in November. which was driven by early Christmas shopping.
On a yearly basis, retail sales declined 2.4% after increasing at an annual pace of 0.2% in the previous month and dropping to their lowest level since 2018.
Non-food store sales declined 3.9%, partly because consumers advanced their purchases earlier than usual in November.
The cost of living crisis and the surge in inflation have negatively impacted the real income of consumers, and consumers have reacted by keeping their spending on basic items and avoiding discretionary purchases.
Consumer spending was weak across several categories of products, and department store sales declined 7.1%, household goods store sales fell 3.0%, and apparel sales decreased 1.5%.
Food store sales declined by 3.1%, and automotive fuel sales fell by 1.9%.
The broad decline covering food and non-food items in the month stoked fears of a recession, and the statistical agency said that the retail sales weakness could push the UK economy into a technical recession in the fourth quarter.
Europe Indexes and Yields
The DAX index increased 0.4% to 16,638.77, the CAC-40 index rose 0.4% to 7,429.14, and the FTSE 100 index increased 0.5% to 7,499.01.
The yield on 10-year German bonds edged up to 2.31%; French bonds inched higher to 2.84%; the UK gilts edged lower to 3.91%; and Italian bonds held at 3.90%.
The euro edged lower to $1.087, the British pound inched lower to $1.267, and the U.S. dollar gained to 86.91 Swiss cents.
Brent crude advanced $0.63 to $79.67 a barrel, and the Dutch TTF natural gas increased by €0.52 to €28.51 per MWh.
Europe Stock Movers
BASF SE increased 0.4% to €43.68 after the German chemical company estimated a swing to a net income of €225 million in 2023.
Deliveroo PLC decreased 0.7% to 133.60 pence after the UK-based food delivery company said 2023 earnings are expected to be slightly ahead of its estimate.
4imprint Group soared 14.4% to 5,300.0 pence after the direct seller of promotional products said its sales and earnings for the full year are likely to exceed the previous year.
- Arjun Pandit
- 19 Jan, 2024
- Mumbai
Asian markets traded higher after Taiwan Semiconductor reported flat quarterly revenue growth and a decline in earnings, but the company signaled that demand is expected to improve in the current quarter.
Optimism about AI-fueled demand lifted semiconductor stocks in New York.
Moreover, a steady flow of positive updates on retail sales, jobless claims, and housing market activities supported investor enthusiasm.
The rebound in U.S. stocks supported the increase in the final hour of trading in Europe and powered the market advance across Asia in Friday's trading.
European markets gained for the first time in three days as investors reacted to positive earnings reports.
In addition, the latest ECB's policy meeting minutes showed most members supported keeping interest rates restrictive until inflation is on a sustainable path towards the 2% level.
Tech Stocks Power Market Rally in Tokyo
Stocks in Tokyo advanced, and tech stocks led the gainers following a tech rally in New York in overnight trading.
The Nikkei index jumped 1.2% to 35,892.20 and extended its weekly increase to 0.6%, and this year's increase to 7.7%.
The Japanese yen dropped to a seven-week low of 148.8 against the U.S. dollar after inflation fell to 2.6% in December from 2.8% in the previous month.
Core inflation, which excludes fresh food and not fuel, declined to 2.3%, the lowest level in 18 months, largely because of the high base effect and weaker prices of energy imports, said the Ministry of Internal Affairs and Communication on Friday.
The yen has declined about 5% in the year so far, and the latest weakness in the currency prompted Finance Minister Shunichi Suzuki to warn that the government is prepared to act to keep financial markets stable.
The yen has been under pressure in hopes that the Bank of Japan is likely to keep its monetary policy intact after the fall in inflation and strong earthquake in central Japan.
In stock trading, three leading semiconductor companies, Advantest, Screen Holdings, and Tokyo Electron, rose between 3% and 8%.
SoftBank gained 1.2%, and Fast Retailing added 0.2%.
Automakers closed mixed, but banks edged slightly higher in Friday's trading.
China Stocks Extend Weekly Losses
Stocks in Shanghai and Hong Kong gave up early gains and turned lower in afternoon trading, and foreign investors continued to lower their exposure to the second-largest economy.
The Hang Seng index decreased 0.2% to 15,355.61, and the CSI 300 index declined 0.3% to 3,263.54.
The CSI 300 index is set to close down 0.2% in the week and fall 3.7% in the year so far.
The Hang Seng index is set to fall 5.5% in the week and 8.6% in the year so far.
Foreign investors have sold 6.6 billion yuan, or $917 million, of Chinese shares in the year so far, according to data available from Stock Connect.
This selloff is in addition to the $26 billion of stocks sold by foreign investors in the five-month period last year between August and December.
Benchmark indexes in mainland China and Hong Kong declined for four years in a row and dropped about 42% from their highs in 2020 on the worries that corporate earnings will continue to decline on the slowing economic growth, protracted property market slump, and rising tensions with the U.S.
India Indexes Rebound
Stocks in Mumbai opened sharply higher after tech stocks rallied in an overnight rally in New York, sparking a rally in Asian markets.
The Nifty and the Sensex indexes gained more than 0.8% in early trading and cut losses from the previous two sessions.
The Sensex index decreased 396.62 points to 71,104.14, and the Nifty index fell 132.25 points to 21,439.70.
Two widely followed indexes are set to close down about 1.6% in the week.
On the Mumbai stock exchange, 304 stocks traded at their 52-week highs and 5 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds increased to 7.19%, and the Indian rupee edged lower to ₹83.14 against the U.S. dollar.