Asia-Pacific stock indices are rising in trading on Monday.
Investors continue to monitor the quarterly earnings season and evaluate fresh statistics from China.
China’s Shanghai Composite index was up 0.4 percent by 8:20 a.m. Hong Kong Hang Seng added 3.6%.
Traders remained optimistic amid unconfirmed reports last week that Chinese authorities may start loosening covid restrictions and abandon its zero-tolerance COVID-19 policy in March. However, Beijing made clear over the weekend that it is still committed to a tough fight against the coronavirus, Trading Economics wrote.
Meanwhile, Goldman Sachs experts think that the optimism of market participants may persist for 2 to 3 months and the market itself may grow by 20% due to this.
Shares of semiconductor maker Hua Hong Semiconductor Ltd. jumped 16%. The company plans to list on the Shanghai Stock Exchange and may raise up to $2.5 billion.
On the Hong Kong Stock Exchange, shares of developer Country Garden Holdings Co. Ltd. (+13.4%), optical device maker Sunny Optical Technology Group Co. Ltd. (+8.4%) and biopharmaceutical Wuxi Biologics (Cayman) Inc. (+7.7%).
China’s exports in October fell 0.3% year on year to $298.37 billion, according to the General Administration of Customs of the People’s Republic of China. Analysts polled by The Wall Street Journal had forecast a 4% increase. It added 5.7% in September.
Imports fell 0.7% year on year to $213.17 billion in October after rebounding 0.3% in September. Economists had expected the figure to be unchanged last month. China’s foreign trade surplus reached $85.2 billion in October, compared with $84.7 billion a month earlier and $84.8 billion a year earlier. Experts estimated the October surplus at $95.8 billion.
Japan’s Nikkei 225 was up 1.2% by 8:35 a.m.
Shares of toy maker Sanrio Co. that owns the Hello Kitty brand are up 13%. The company increased its net profit 1.5 times in the first fiscal year and improved its full-year outlook.
Also among the leaders in the Japanese indicator are securities of JFE Holdings Inc.(+7.5%) investing in the steel business, transport and logistics company Kawasaki Kisen Kaisha Ltd. (+6.6%) and printer maker Konica Minolta Inc. (+5.8%).
Sharp Corp., the Japanese unit of electronics maker Foxconn Technology Group, was down 2.7 percent. The company reported a net loss last quarter and cut its outlook for the year.
South Korea’s Kospi index was up 0.9 percent by 8:45 a.m.
The stock price of Samsung Electronics Co., one of the largest chip and electronics makers in the world, rose 1.2%, the value of Hyundai Motor jumped 4%.
Australia’s S&P/ASX 200 index rose 0.6% on Monday.
Share prices of the world’s largest mining companies BHP and Rio Tinto added 5% and 3.8% respectively.
Meanwhile, Coronado Global Resources Inc. shares are down 7% on news that the company terminated merger talks with U.S.-based Peabody Energy Corp.
European stock indexes are falling during trading on Monday following the stock markets of the Asia-Pacific region (APR).
Market sentiment continues to be influenced by concerns about the impact of higher interest rates on global economic growth, writes Trading Economics. In addition, the situation in Ukraine is again in the focus of investors’ attention.
The composite index of the largest enterprises in Europe Stoxx Europe 600 by 11:17 qoq fell by 0.63% to 389.21 points.
The German DAX loses 0.27%, the French CAC 40 – 0.9%, the British FTSE 100 – 0.71%, the Italian FTSE MIB – 0.53%. The Spanish IBEX 35 is down 0.6%.
The Bank of England will increase the maximum volume of daily auctions for the purchase of government bonds as part of a temporary program, the launch of which it announced on September 28. The British Central Bank still plans to fully complete the redemption of government bonds on Friday, October 14, according to its press release. Since the launch of the program, the regulator has held 8 auctions, in which it bought bonds for a total of 5 billion pounds ($5.5 billion), although it was ready to purchase papers for 40 billion pounds.
Shares of TotalEnergies (SPB:TOT) SE fell 1.5%. The energy company has offered to hold annual wage talks with unions in France ahead of schedule, subject to the completion of strikes at refineries.
British online retailer THG PLC is the drop leader, dropping 7.8%.
In addition, the shares of the German energy company Uniper SE (-7.5%) and the manufacturer of lighting equipment ams-OSRAM AG (-6.7%) are getting cheaper.
Renault SA gained 3.1% after the French automaker confirmed it was in talks for an alliance with Japan’s Nissan Motor Co., including a potential investment in Renault’s new electric car business.
Shares of Societe Generale SA are up 0.8%. French bank COO Galle Olivier will leave the company at the end of the year amid a management reshuffle, Societe Generale said in a statement.
Stock markets in the Asia-Pacific region are falling during trading on Monday.
Exchanges in Japan are closed due to the celebrations on the occasion of Health and Sports Day.
Chinese stock indexes show the most severe decline after the US stepped up measures to control the export of semiconductor products to China.
The Hong Kong Hang Seng fell 2.5% by 8:15 qoq, the Shanghai Shanghai Composite – 0.4%.
The stock prices of microelectronics manufacturers Semiconductor Manufacturing International Corp. are falling most significantly on Chinese stock exchanges. (-2.7%), Advanced Micro-Fabrication Equipment Inc. (-17.6%) and GigaDevice Semiconductor Inc. (-7%).
US authorities on Friday imposed new restrictions on the supply of advanced chips and equipment for the production of semiconductors to China to prevent the development of the Chinese military industry through these products.
Among the drop leaders on the Hong Kong Stock Exchange are also shares of casino operator Sands China Ltd. (-7.6%), China Merchants Bank Co. Ltd. (-6%) and IT company Meituan (-5.9%).
Purchasing Managers’ Index (PMI) for China Services, calculated by Caixin Media Co. and S&P Global, fell to 49.3 points in September from 55 points in August due to the negative impact on the sector of coronavirus restrictions.
An index value below 50 points indicates a drop in business activity in the service sector. The indicator fell below this mark for the first time in four months.
The South Korean Kospi index decreased by 0.2% by 8:25 a.m.
The value of shares of automaker Hyundai Motor fell by 1.4%.
Quotes of securities of one of the world’s largest manufacturers of chips and electronics Samsung Electronics Co. are down 0.2%, while shares of its rival LG Electronics are up 1.4%.
The Australian S&P/ASX 200 fell 1.2%, following shares of mining companies.
The price of Silver Lake Resources Ltd. fell 7%, Chalice Mining Ltd. – by 6.8% and Evolution Mining Ltd. – by 6.7%.
Stock markets in Western Europe are actively rising during trading on Tuesday, following the US stock market and stock exchanges in the Asia-Pacific region (APR).
The composite index of the largest companies in the Stoxx Europe 600 region rose by 2.01% by 11:18 a.m. to 398.70 points.
The German DAX index rose by 2.25%, the French CAC 40 – by 2.7%, the British FTSE 100 – by 1.46%. The Italian FTSE MIB and the Spanish IBEX 35 gained 2.46% and 2.02% respectively.
American stock indices finished the first trading session of the fourth quarter with a steady growth, the rise of the Dow Jones Industrial Average was the highest since February, amounting to 2.7%.
Global markets are supported by hopes that incoming pessimistic statistics may force central banks to slow down the pace of tightening monetary policy, writes Trading Economics.
Statistical data, published on Monday, showed a decline in the index of business activity in the US manufacturing sector in September to the lowest level since May 2020. This was taken by the market as a signal that the tightening of the policy of the Federal Reserve System (Fed) is beginning to suppress economic activity, experts say.
The ISM Manufacturing Index fell to 50.9 last month from 52.8 a month earlier, according to the Institute for Supply Management (ISM). Analysts on average expected it to fall to 52.2 points, according to Trading Economics.
Shares of Credit Suisse Group AG rise in price by 4.5%, recovering from the fall the day before on concerns about the ability of the Swiss bank to restructure its business. At the same time, the head of Credit Suisse, Ulrich Körner, announced the stability of the bank’s finances.
Papers of the British Legal & General Group added 4.9%. The insurance company said it would continue to support pension fund clients hit by the sharp rise in interest rates.
The leading gainer among the components of the Stoxx Europe 600 index is British bakery chain Greggs PLC, which gained 9.3%. The shares of the Swiss manufacturer of vacuum equipment VAT Group AG (+6.9%) and the French IT company Atos SE (+6.8%) are also actively growing.
The main stock indexes of the Asia-Pacific region (APR) are steadily rising during trading on Tuesday following the US stock market.
American stock indices finished the first trading session of the fourth quarter with a steady growth, the rise of the Dow Jones Industrial Average was the highest since February, amounting to 2.7%.
Mainland China’s stock exchanges are closed for the Founding Day of the People’s Republic of China holidays, Hong Kong’s stock exchanges for the Double Ninth Festival.
The value of the Japanese index Nikkei 225 to 8:27 CSK increased by 2.8%.
Among the components of the index, the growth leaders are Nippon Sheet Glass Co. Ltd. (+8.4%), Itochu Corp. (+7.9%) and Marubeni Corp. (+6.8%).
In addition, the price of securities of investment and technology SoftBank Group (+5.1%), consumer electronics manufacturer Sony (+2.3%), automotive Nissan Motor (+2%) and Toyota Motor (+2.7%) is rising.
The South Korean Kospi index increased by 2.4% by 8:30 am KSK.
Purchasing Managers Index (PMI) in the processing industry of South Korea, calculated by S&P Global, fell to 47.3 points in September from 47.6 points a month earlier. A PMI value above 50 points indicates an increase in activity in the sector, below – its weakening. Thus, activity in the sector has been declining for the third month in a row.
Quotes of securities of one of the world’s largest manufacturers of chips and consumer electronics Samsung Electronics Co. grew by 4%, while automaker Hyundai Motor – by 1.4%.
The Australian S&P/ASX 200 added 3.75%.
Shares of the world’s largest mining companies BHP and Rio Tinto increased by 3.8% and 3.1%, respectively.
The Reserve Bank of Australia (RBA) unexpectedly slowed down the pace of key interest rate hikes, noting the deterioration of the global economic outlook.
The rate was raised on Tuesday by 25 basis points (bp) to 2.6%. The vast majority of economists expected it to increase by 50 bp, writes The Wall Street Journal.
The RBA raised the bet by 50 bp. in June, July, August and September, in an effort to slow inflation, which the Central Bank expects to peak by the end of 2022 at around 8%.
Stock indices of the Asia-Pacific region (APR) do not show a single dynamics during trading on Tuesday.
Equity markets are under pressure amid fears of persistently high inflation and the risk that central bank measures to contain it could trigger a recession in the global economy, writes MarketWatch.
Investors mainly focused on the actions of the US Federal Reserve System (FRS), which last week raised the federal funds rate by 75 basis points, to a range of 3-3.25% per annum, which is the maximum level since the financial crisis of 2008. At the same time, based on FRS estimates, by the end of 2022 the rate will reach 4.4% per annum.
Additional pressure on the equity markets in recent days has been exerted by volatility in the foreign exchange markets.
In addition, market participants are preparing for the start of a new reporting season, as the third quarter of this year is coming to an end. The results of the companies will allow them to better understand how the business copes with high inflation.
The Japanese Nikkei 225 index added 0.3% by 8:26 Moscow time.
The leaders of growth among the components of the indicator are shares of Hitachi Zosen Corp. (+4.1%), Konami Group Corp. (+4%) and Mitsui E&S Holdings Co. Ltd. (+2.8%).
The Chinese Shanghai Composite index rose 0.75% by 8:33 Moscow time, while the Hong Kong Hang Seng decreased by 0.9%, while earlier in the course of trading it fell to a minimum of more than 11 years.
The total profit of large Chinese industrial enterprises decreased by 2.1% in January-August 2022 compared to the same period a year earlier and amounted to 55.25 trillion yuan ($7.72 trillion), according to the State Bureau of Statistics (GSO) of the country.
Meanwhile, the People’s Bank of China (PBOC, the country’s central bank) accelerated the injection of liquidity into the financial system towards the end of the quarter. The regulator injected 175 billion yuan through open market operations, the NBK said in a statement.
Shares of Link Real Estate Investment Trust (-4.1%), Shenzhou International Group Holdings Ltd are among the drop leaders in Hong Kong. (-3.9%) and Budweiser Brewing Co. APAC Ltd. (-3.9%).
The South Korean index Kospi by 8:37 Moscow time fell by 1%.
Shares of one of the world’s largest manufacturers of chips and consumer electronics Samsung Electronics Co. rose in price by 0.1%, automaker Hyundai Motor – by 0.55%.
The Australian stock index S&P/ASX 200 rose by 0.25%.
Mining BHP Group rose 2.2%, Rio Tinto – 2.6%.
