Most of the stock indices of the largest countries in the Asia-Pacific region are growing on Tuesday following the rise of the US market a day earlier against the background of good quarterly reports of companies.
The only exception is the Chinese Shanghai Composite index, which fell 0.06% by 8:35 a.m. CET.
The Hong Kong Hang Seng added 1.2% by this time.
BYD Co. stock quotes. on the Hong Kong Stock Exchange jumped 6.4%. The leading manufacturer of vehicles powered by new energy sources in China expects net profit growth in the third quarter by almost 5 times (by 365%) – up to 5.5-5.9 billion yuan ($764-820 million), according to preliminary calculations.
Auto parts subsidiary BYD Electronic rose 7.5%.
Top gainers in Hong Kong on Tuesday also included solar panel maker Xinyi Solar Holdings (+5.7%), jewelry chain Chow Tai Fook Jewelery Group (+4.9%), chip maker Sunny Optical Technology Group Co. (+4.8%) and automaker Geely (+4%).
In addition, Internet retailers Alibaba Group and JD.com rose 3.8% and 2.7%, respectively, while Internet giant Tencent Holdings Ltd. – by 2.9%.
The value of the Japanese index Nikkei 225 increased by 1.5% by 8:31 am KSK.
The most significant increase in quotations is demonstrated by shares of medical services provider M3 Inc. (+5.5%), electronics manufacturer Sharp Corp. (+5%) and musical instrument manufacturer Yamaha Corp. (+4.9%).
The value of Recruit Holdings Co. jumped by 4.8%. The recruiting company announced the repurchase of its own shares in the amount of 150 billion yen ($1.01 billion), which is 2.5% of the capital. The program will run until March 14, 2023.
Also rising stock quotes financial group Mitsubishi UFJ (+1%), clothing retailer Fast Retailing (+1.3%) and consumer electronics manufacturer Sony Group (+1.2%).
The South Korean index Kospi rose by almost 1% by 8:26 am KSK.
Quotes of securities of one of the world’s largest manufacturers of chips and electronics Samsung Electronics Co. decline by 0.5%, while the cost of automaker Hyundai Motor rose by 0.3%.
The Australian S&P/ASX 200 gained 1.7%.
The capitalization of the world’s largest mining companies BHP and Rio Tinto increased by 1.4% and 0.1%, respectively.
Shares of technology companies are also going up: Block Inc (+7.2%), Xero (+3.4%), Life360 Inc (+3%), Seek (+3.6%) and Wisetech Global (+3.4%) ).
Oil prices are rising during trading on Tuesday after a moderate decline in the previous session.
The cost of December futures for Brent crude on the London ICE Futures exchange by 8:06 am CST on Tuesday is $92.37 per barrel, which is $0.75 (0.82%) higher than the closing price of the previous session. As a result of trading on Monday, these contracts fell by $0.01 (0.01%) to $91.62 per barrel.
The price of futures for WTI oil for November in electronic trading on the New York Mercantile Exchange (NYMEX) rose by this time by $0.82 (0.96%), to $86.28 per barrel. By the close of previous trading, the value of these contracts fell by $0.15 (0.2%) to $85.46 per barrel.
The market is supported, among other things, by the weakening of the dollar, which is depreciating against major currencies on Tuesday amid increased risk appetite, writes CNBC. Meanwhile, concerns about a potential recession in the global economy limit the growth of oil prices.
Downward pressure on oil prices continues to be exerted by concerns about the tightening of the monetary policy of many major central banks of the world, aimed at curbing inflation, writes Trading Economics.
Meanwhile, China is expected to maintain loose monetary policy to support the economy amid COVID-19-related restrictions.
Market participants are preparing to cut OPEC+ oil production. As reported, in early October, OPEC + decided to reduce oil production quotas from November by 2 million barrels per day.
Ukrainian Parliamentary Ombudsman Dmytro Lubinets has met Russian Ombudswoman Tetyana Moskalkova.
“During the prisoner exchange, I met the Russian Ombudswoman Tatyana Moskalkova for the first time. The need for negotiations was in the humanitarian field. In particular, they talked about the need to intensify the repatriation of prisoners of war and the release of civilian hostages,” he wrote in his Telegram channel on Monday.
“We discussed the following points: The need for a visit to the colony in Olenivka by the Ukrainian and Russian sides and, if necessary, with the participation of a third party; the need for bilateral cooperation on many issues affecting the civilian population; the elaboration of ways to visit prisoners of war and inspect their places of detention, both on Russian-controlled territory and in Ukraine; the possibility for prisoners of war to call their relatives; a thorough search for missing persons; the reunification of families when children and parents are in different areas; the restoration of documents for refugees; and
At the end of the meeting, it had been agreed to send official letters on the implementation of the agreed human rights protection tasks. “I hope that the implementation of the agreed proposals will be a step to help our citizens!” – Lubinec said.
Ukrainian businesses in the third quarter worsened expectations of inflation over the next 12 months to 25.2% from 21.7% in the previous quarter and worsened expectations of hryvnia devaluation to 41.93 UAH/$1 from 36.06 UAH/$1.
According to the results of the regular quarterly survey of business expectations of enterprises in the country, released on the NBU website on Monday, the business expectations index (BIE) of enterprises rose to 79.5 percent from 72.6 percent in the previous quarter, indicating a softening of negative economic sentiment.
The central bank explained that the increase was due to improved estimates for all components of the index, most notably for total sales of own-produced goods.
It is noted that companies expect a slowdown of decline in production of goods and services in Ukraine in the next 12 months: the balance of responses is “minus” 37.9% in the third quarter compared to “minus” 48.7% in the second quarter of 2022.
The majority of companies (52.4%) expect their financial and economic situation to remain unchanged in the next 12 months, 31.3% expect it to deteriorate and 16.2% expect it to improve.
According to the report, 31.7% of respondents expect a reduction in sales volumes (compared to 43% in the second quarter), including in foreign markets, while 44.4% expect the volumes to remain unchanged.
According to the survey, 32.9% of enterprises intend to reduce the number of employees, 59.7% – leave the staff unchanged.
Reduced expectations of companies to increase salaries of workers in the next 12 months: 41.4% of respondents plan to increase wages, 50.8% – to keep at current levels, 7.9% – to reduce.
The percentage of companies that plan to attract foreign investment fell to 22.2% from 24.1%, according to the survey.
Loans in local currency are planned to attract 86.3% of companies, while in the previous quarter this proportion was 84.6%.
A total of 642 companies from 21 regions participated in the survey of business expectations, which was conducted between 1st and 31st of August 2022. Among those surveyed, 18.2% were companies in the processing industry, 21.2% in wholesale and retail trade, 14.6% in agriculture, 13.2% in transport and communications, 6.4% in mining, 5.1% in electricity and water supply, 3% in construction and 18.2% in other sectors.
The EDI is an aggregate indicator regarding the expected development of enterprises in the next 12 months. Calculated based on the results of surveys of enterprises as an arithmetic means of the balances of responses regarding the financial and economic situation of enterprises, total sales of own production, investment spending on construction works, investment spending on machinery, equipment and inventory, and the number of employees.
An index value of more than 100 indicates an advantage of positive economic sentiment in society, below 100 – negative economic sentiment.
Ukraine in January-September 2022 reduced imports of nickel and products from it by 44.4% compared to January-September 2021 – to $49.3 million (in September – $4.664 million), aluminum and products from it – by 30, 8%, to $239.539 million ($32.357 million). At the same time, it reduced the import of lead and products from it by 65.1% – to $2.395 million ($146 thousand). Imports of tin and products from it fell by 8% – to $2.789 million ($322 thousand), and imports of zinc and zinc products also decreased – by 58.5%, to $28.225 million ($2.090 million).
Exports of aluminum and products from it for the first nine months of 2022 decreased by 36.4% compared to January-September 2021 – to $75.861 million (in September – $9.406 million), lead and products from it by 67.2% – to $9.370 million ($0.684 million), nickel and products – by 69.2%, to $1.079 million ($0.141 million).
