The JSE will open to mixed Asian markets on Friday, but might be lifted by China’s gaming regulator granting new licences to Tencent — the world’s largest gaming company which influences the JSE via Naspers and Prosus — for the first time in a year and a half.
The Hang Seng in Hong Kong and Nikkei in Japan were up 0.56% and 0.17%, respectively, while the Shanghai composite in mainland China retreated 0.11%. Year to date, the Hang Seng is down 22.03%, the Shanghai composite 14.33% and the Nikkei 4.52%.
Tencent gained 0.21%, but has fallen 35.52% in 2022.
Tech companies in Hong Kong were lifted by China’s gaming regulator granting publishing licences for 70 new games. Regulators need to approve new games in China before they are released, unlike in other countries.
Meanwhile, investment bank Goldman Sachs said on Thursday that it sees China’s GDP growing 4.5% in 2023 as the country gradually lifts its zero-Covid policy. There are lockdowns in place in parts of the world’s second-largest economy as it tries to tame the rising number of cases.
Traders in Japan shrugged off new economic data, including annual inflation reaching its highest reading in October since January 1991 and core inflation, which excludes fresh food but includes fuel costs, coming in at its highest level since February 1982.
In local markets, the JSE ended weaker for a second straight session on Thursday, reflecting the moderation in risk appetite globally after more hawkish remarks from US Federal Reserve officials.
The all-share index gave up 0.56% to settle at 72,195.32 points, dragged lower mainly by miners and big industrial stocks. Still, the all-share is up 8% in the month to date.
US markets ended lower on Thursday with the Nasdaq sliding 0.35%, the S&P 500 0.31% and the Dow Jones 0.02%. The Nasdaq has lost 29.61% of its value in 2022, the S&P 500 17.72% and the Dow Jones 8.31%.
The rand strengthened slightly against the dollar as it traded at R17.35. The rand has depreciated by 8.77% against the greenback this year.
In commodities, the price of platinum rose 0.72% to $988.25, Brent crude 0.47% to $90.40 a barrel and gold 0.24% to $1,763.36/oz.
In local corporate news, printing and manufacturing company Novus Holdings will publish its interim results on Friday.
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