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Live updates from Asian markets: Japanese Nikkei crosses 38,000 mark

India’s weighting in MSCI Global Standard index hits record high: Reuters

Index provider MSCI increased India’s weighting in its Global Standard index to 18.2% in its February review, a record high, according to Reuters.

The report adds that India’s weighting in the index has almost doubled since November 2020.

MSCI said it added five Indian stocks to the index during the February review. In total, MSCI will add 24 stocks to the index and remove 101.

Most notably, 66 Chinese stocks were removed from the index, and only five were added. The changes will come into effect on February 29, after the market closes.

-Lim Hui Jie

The Nikkei gains more than 2%, approaching its all-time high

The reference of Japan Nikkei 225 continued to push its 34-year high on Tuesday, gaining 2.44% and reaching 37,798.89 at the lunch break, just over 1,000 points from its all-time high of 38,915.87 set on the 29th. December 1989.

The index was driven by business services and communications stocks, with the biggest gainer being the insurance company. Participations of the MS&AD insurance groupup 11.42%.

Other names on the list of top gainers include an electronics and semiconductor company. Tokyo Electronwhich climbed 11.24%, and the insurance company Tokyo Marine Holdings jumping 10.25%.

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Japan’s Otsuka Holdings plunges more than 10% after Alzheimer’s drug trials fail

Shares of a Japanese pharmaceutical company Otsuka Holdings plunged as much as 10.65% on Tuesday, breaking away from the Nikkei 225’s broader uptrend.

This comes after the company reported that its drug AVP-786 did not achieve a “statistically significant difference” compared to placebo in phase 3 trials. AVP-786 was intended to treat agitation associated with dementia due to Alzheimer’s disease

Otsuka said the symptom is reported in about half of all Alzheimer’s dementia patients and is a consistent predictor of admission to a nursing home.

For this reason, the company also expects to record an impairment loss of approximately 115 billion yen ($770 million) on the AVP-786 in the fourth quarter.

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SoftBank Rises Up to 10% as Arm’s Rally Continues, Leads Nikkei

Shares of a Japanese investment holding company SoftBank jumped as much as 10.2% as Arm shares continued their rally into a second week.

The chip designer saw its shares soar 29% on Monday. It has gained 93% since releasing its quarterly financial results on February 8. SoftBank owns approximately 90% of Arm’s outstanding shares.

With this increase, SoftBank is the biggest winner in the market. Nikkei Tuesday, with the index also gaining nearly 2% and leading gains among Asian markets.

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Japan’s corporate inflation rate rises 0.2% in January

Japan’s corporate goods price index rose 0.2 percent in January from a year earlier, beating the 0.1 percent expected by economists polled by Reuters. This compares to the revised growth rate of 0.2% for December.

On a monthly basis, corporate inflation in Japan remained stable, slowing from the 0.3% seen in December.

The CGPI measures changes in the prices of goods traded within the business sector.

-Lim Hui Jie

CNBC Pro: As the Year of the Dragon begins, pros name sectors – and stocks – to play in the Chinese market

Falling foreign direct investment, falling inflation levels and stock market turmoil have put pressure on the Chinese economy, prompting many investors to be cautious about the Asian power as it scores the start of the Year of the Dragon.

“I’m still positive and optimistic about China right now. However, I think the cyclical recovery has been much slower than expected. I don’t want to be binary and say that China is “collapse — because it’s not. I think the strength of the economy has been a little bit weaker, but it’s still recovering and growing,” he told CNBC Pro.

Elsewhere, Morningstar analysts note that “China stocks are still relatively cheap,” citing the sectors – and stocks – they currently like.

CNBC Pro subscribers can learn more here.

-Amala Balakrishner

CNBC Pro: Goldman Names 3 ‘Attractive’ Value Stocks That Offer Over 50% Upside Potential

Goldman Sachs has identified three “attractive” value stocks that could see significant share price appreciation over the next 12 months.

The Wall Street bank said the three little-known companies stood out from their peers for their cheap valuations relative to earnings growth prospects.

CNBC Pro subscribers can learn more here.

-Ganesh Rao

Wage growth not a worry for inflation, says JPMorgan’s David Kelly

The January jobs report showed hourly wages rose 4.5% year-over-year, but that doesn’t mean another surge in inflation is imminent, according to David Kelly, chief global strategist at JPMorgan Asset Management.

The strategist said Monday at the Exchange ETF Conference that, if anything, American workers aren’t trying hard enough to get raises, which is contributing to lower inflation.

“If you want to understand why inflation falls in a full-employment economy, here’s why: because American workers aren’t asking for a raise. Not really, not in the way they could,” Kelly said. said.

He pointed to low union density as one reason workers are hesitant to demand big raises, even with unemployment below 4 percent.

Kelly also said that increased productivity means wages can rise more than inflation without causing another price spike.

“Wages are expected to rise by the sum of consumer inflation and productivity. Right now, productivity growth is strong, which means there is nothing wrong with ( growth) in wages by 4%,” Kelly said.

—Jesse Book

Bitcoin hits $50,000 for the first time in over two years

Bitcoin surged above $50,000 on Monday, at one point hitting its highest level in more than two years.

The price of the flagship cryptocurrency was last up 3.5% at $49,875.00, according to Coin Metrics. Previously, it hit $50,334.00, its highest level since December 2021. Ether was up more than 4% at $2,624.45, after hitting $2,638.62 for the first time since on January 12.

Monday’s rise sent crypto stocks higher. Crypto exchange Coinbase gained over 3% while Bitcoin proxy MicroStrategy advanced by almost 10%. Several mining stocks rose by double digits. CleanSpark increased by around 14% and Iris energy jumped 15%. Digital marathon gained 13%.

-Tanaya Macheel

Arm Holdings soars up to 42% on Monday, two days after jumping 48%

British software and semiconductor designer Arm Holdings Plc surged as much as 42% on Monday, two trading days after surging 48% in response to earnings released after the market on February 7. Arm nearly doubled in February following fiscal third-quarter sales and net income, as well as forward-looking financial guidance, all of which beat analysts’ highest estimates.

The problem for institutions and major investors is the limited number of shares available for trading in Arm, which went public last September in a highly anticipated offering at $51 per share. The stock price was at the high end of an expected range of $47 to $51, then closed up 25% on its first day of trading.

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Arm Holdings Plc shares in the United States over the past month.

About 95.5 million shares were sold in the IPO five months ago, out of a total outstanding of about 1.03 billion. Of these 95.5 million, approximately 9.3 million were recently sold short, compared to 10.7 million the previous month.

Japanese technology investor and telecommunications provider Softbank Corp., itself up 10% in over-the-counter trading Monday in the United States, continues to hold about 90% of Arm. According to FactSet, institutional investors together own only 7.2% of Arm shares currently available for trading.

-Scott Schnipper

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