The stock indices of the largest countries in the Asia-Pacific region (APR) do not show a single dynamics on Monday morning, market participants monitor the situation in the global economy and evaluate the statements of Chinese officials during the 20th Congress of the Chinese Communist Party (CCP).
The Chinese economy showed signs of “significant improvement” in the third quarter, Zhao Zhenxin, deputy head of the National Development and Reform Commission, said on the sidelines of the convention.
In March, April and July, the Chinese economy was negatively affected by factors that could not be foreseen, including external events, coronavirus outbreaks and extreme weather events, MarketWatch quoted a MarketWatch official as saying. At the same time, overall business activity, from industrial production and investment to consumer spending, continues to grow, he added.
On Monday, it also became known that the People’s Bank of China injected 500 billion yuan ($69.6 billion) into the financial system under the medium-term lending program (MLF). At the same time, the rate on loans for a period of one year, issued under the MLF, was maintained at the level of 2.75% per annum, the NBK said.
Meanwhile, Indonesia’s trade surplus in September fell to $4.99 billion from $5.76 billion in August and was lower than analysts’ expectations of $5.30 billion.
Exports decreased by 11% in monthly terms and increased by 20.3% in annual terms, amounting to $24.80 billion. The decline is explained by falling prices for raw materials, including nickel and palm oil. Meanwhile, the volume of imports decreased by 10.6% compared to August and amounted to $19.81 billion.
Hong Kong’s Hang Seng index is down 0.4% by 8:26 a.m., renewing a minimum in 11 years. China’s Shanghai Composite, meanwhile, rose 0.2%.
Tianqi Lithium fell 4.4%, Contemporary Amperex 2.8% and Longi Green Energy 2%.
Shares of Alibaba (SPB: BABA) are down 2% in Hong Kong trading, while automaker Li Auto (SPB: LI) is down 2.5%.
The value of the Japanese Nikkei 225 index fell by 1.2%.
The decline leaders among the components of the index are shares of technology companies SoftBank Group (-1.8%), Tokyo Electron (-1.5%), Shift Inc. (-9%), M3 Inc. (-4.3%) and Recruit Holdings (-3%).
Fast Retailing fell 1.5%, Toyota Motor – 0.7%, Sumitomo Mitsui – 1.3%, Sony Group – 1.1%.
South Korean index Kospi rose by 0.3%.
The market value of one of the world’s largest chip manufacturers Samsung Electronics Co. increased by 1.1%, automaker Hyundai Motor – by 0.3%.
The Australian S&P/ASX 200 fell 1.4%.
The leader of the decline is the mining and energy sectors. Capitalization of BHP Group decreased by 2.7%, Fortescue Metals – by 2.9%, Rio Tinto – by 2.8%, Woodside Energy – by 2.6%, Santos Ltd – by 2.7%.
