Japanese Stocks Led Gains in the Region
Stocks in Asia-Pacific were mixed on October 26, after U.S. stocks rose to record highs one day earlier on October 25.
In Japan, the Nikkei 225 gained 1.77% to end its trading day at 29,106.01. The Topix index added 1.15% to 2,018.40.
In South Korea, Kospi gained 0.94% to close at 3,049.08. The country’s gross domestic product grew 0.3% on a seasonally adjusted basis in the third quarter of 2021 as compared with the previous quarter.
Mainland Chinese stocks suffered losses on October 26. The Shanghai composite fell 0.34% to 3,597.64 and the Shenzhen component dropped 0.363% to 2,424.39.
In Hong Kong, the Hang Seng index fell 0.36% to finish its trading day at 7,443.40.
In Australia, the S&P/ASX 200 advanced slightly to 7,443.40.
Chinese property stocks and a property tax
Real estate stocks in Hong Kong fell on Tuesday amid fears that China could tax property owners. This summer, the country’s leader Xi Jinping highlighted authorities’ commitment to delivering “common prosperity” for all citizens of the country.
Several days ago, the top executive body, the State Council, was authorized to conduct such as test for five years in unspecified regions. At the moment, the country does not have a blanket tax on property. Real estate ownership in the world’s second-largest economy can also differ. For instance, state-owned enterprises distributed apartments to their employees.
Shares of the world’s most indebted property developer China Evergrande Group dropped 4.12% while China Vanke declined 4.66%. Moreover, shares of Country Garden fell 4.3%. The Hang Seng Properties index dropped 1.61% to 31,148.49.
On October 26, shares of electric vehicle battery makers in Asia-Pacific jumped thanks to one announcement. Hertz decided to order 100,000 vehicles from Tesla by the end of 2022.
In Japan, shares of Panasonic advanced 5.64%. South Korea’s LG Chem, owner of electric battery maker LG Energy Solution, rose 1.1%.
In mainland China, nonetheless, shares of Contemporary Amperex Technology dropped 2.092% after earlier surging more than 4%.
Electric vehicle stocks in Hong Kong also saw gains on the day. Share of BYD gained 2.84% and Xpeng added 8.74%.
On October 25, the Dow Jones Industrial as well as S&P 500 sailed to record closing highs. The Dow Jones Industrial Average gained 64.13 points to 35,741.15. The S&P 500 added 0.47% to 4,566.48. The Nasdaq Composite also gained 0.9% to 15,226.71.
