Stock indexes in Asia are rising during trading on Tuesday, including due to good quarterly reports of companies.
Investors’ attention this week is focused on the meeting of the Federal Reserve, which, as most analysts expect, will once again raise the base rate by 0.75 percentage points (pp). Then its range will be 3.75-4% per annum.
Meanwhile, the Reserve Bank of Australia (RBA) raised its key interest rate by 0.25 percentage points on Tuesday. – up to 2.85% per annum. This coincided with the forecast of most analysts, according to Trading Economics.
The Central Bank raised the rate for the seventh time in a row. It is currently at its highest since April 2013. At the same time, RBA management does not exclude its further rise to curb inflation, which remains at a high level.
The Australian S&P/ASX 200 rose 1.65% on Tuesday.
Share prices of the world’s largest mining companies BHP and Rio Tinto rose by 2.8% and 2.6%, respectively.
In addition, shares of all four largest banks in the country rose in price: Commonwealth Bank – by 1.3%, ANZ Bank – by 1.6%, Westpac Banking and National Australia Bank – by 0.9%.
The value of the Japanese index Nikkei 225 to 8:31 CSK increased by 0.2%.
The stock prices of Japan Tobacco Inc. have risen most significantly. (+9.1%), NTN Corp. (+6.4%) and Panasonic (+6%).
In addition, the value of such large companies as SoftBank Group (+3.2%), Sony Group (+0.7%), Fast Retailing (+0.1%) is growing.
At the same time, the share price of Toyota Motor falls by 2.2%. The automaker in July-September reduced its net profit by 31%, while it turned out to be worse than expected.
The Chinese Shanghai Composite index increased by 1% by 8:36 am CSK. The Hong Kong Hang Seng soared 3.4% after hitting a 13.5-year low a day earlier.
The leading gainers on the Hong Kong stock exchange are China Resources Beer (+9.2%), Internet company Meituan (+8.9%), Sino Biopharmaceutical (+8.4%), and chipmaker Sunny Optical Technology Group. Co. (+8.2%).
In addition, Tencent Holdings Ltd. rose by 7.2%, retailers Alibaba Group and JD.com Inc. – respectively by 5.3% and 5.1%.
AIA Group Ltd., one of the largest Asian insurers, increased the value of new business (the volume of contracts sold) in July-September by 1%. Quotes of the company’s papers jumped by 5.9%.
The South Korean index Kospi by 8:28 KSK added 1.4%.
Quotes of securities of one of the world’s largest manufacturers of chips and electronics Samsung Electronics Co. rise by 0.7%, while the cost of automaker Hyundai Motor decreased by 0.6%.
The next four ships with 115 thousand tons of agricultural products left the ports of Chornomorsk and Pivdenny on Wednesday for Africa, Asia and Europe, the Ministry of Infrastructure of Ukraine reports.
“Four ships left the berths, including Magnum Fortune, which transports 51 thousand tons of Ukrainian wheat for Bangladesh, and Almeray with 32.4 thousand tons of corn for Libya,” the agency noted on Facebook.
In total, after the release of the first vessel with Ukrainian food, 5.4 million tons of agricultural products were exported, and the total number of vessels leaving Ukrainian ports for the countries of Asia, Europe and Africa reached 235.
The agency indicated that the day before, the most capacious vessel of the time of the initiative, the Capesize Maran Excellence, with 115,000 tons of grain, left the port of Pivdenny.
As reported, in Istanbul on July 22, with the participation of the UN, Ukraine, Turkey and Russia, two documents were signed on the creation of a corridor for the export of grain from three Ukrainian ports – Chornomorsk, Odessa and Pivdenny.
The next four ships with 88.17 thousand tons of agricultural products left the ports of Odessa and Pivdenny on Friday for the countries of Asia and Europe, the Ministry of Infrastructure of Ukraine reports.
“MAINLAND, NEW FAITH, USICHEM departed from the berths of the port of Odessa. From the port of Pivdenny – KARTERIA,” the agency noted on Facebook.
In general, since the launch of the first vessel with Ukrainian food, taking into account today’s vessels, 4.9 million tons of agricultural products have been exported. In total, 222 ships with agricultural products departed from Ukrainian ports, sent to the countries of Asia, Europe and Africa.
As reported, on July 22 in Istanbul, with the participation of the UN, Ukraine, Turkey and Russia, two documents were signed on the creation of a corridor for the export of grain from three Ukrainian ports – Chornomorsk, Odessa and Pivdenny.
Metinvest B.V. (the Netherlands), the parent company of the international vertically integrated mining and metallurgical group Metinvest, in 2020 reduced sales of products in Europe by 21% compared to the previous year, to $ 2.851 billion.
According to the audited consolidated financial results for 2020, sales in Europe fell mainly due lower sales prices for steel products. This was also affected by a decrease in sales of semi-finished products by 31% and iron ore products by 48%. As a result, the region’s share in total revenue decreased by 7 percentage points (p.p.) compared to the previous year, to 27%.
In 2020, revenue in Ukraine decreased by 7%, to $ 2.939 billion, mainly due to a decrease in the average price for metal products and coke, as well as a 26% reduction in pellet sales. The decrease in revenues was partially offset by an increase in the supply of long products by 23%, coke by 14% and iron ore concentrate by 43%. In general, the share of Ukraine in the consolidated revenue decreased by 1 p.p. compared to 2019, to 28%.
Revenue in the Middle East and North Africa region rose 9%, to $ 1.8 billion, mainly driven by an increase in slab (2.5 times) and flat products (12%) shipments. As a result, the region’s share in the consolidated revenue increased by 2 p.p., to 17%.
Revenue in Southeast Asia rose 56%, to $ 1.467 billion thanks to the resumption of sales by Metinvest to China amid strong demand in the country. During the reporting period, the group sold 862,000 tonnes of semi-finished products and finished metal products in the country. In addition, supplies of iron ore products to China increased 1.7 times. As a result, the market share of the region in total revenue increased by 5 p.p., to 14%.
Revenue in the CIS decreased by 23%, to $ 635 million due to a decrease in sales volumes and sales prices for flat products. The region’s share in the consolidated revenue decreased by 2 p.p., to 6%.
KSG Agro agricultural holding in 2020 increased export of agricultural products to African and Asian markets by 46%, to 7,770 tonnes, the holding’s press service has said.
“Last year, we expanded our presence in export African and Asian markets. In the context of the quarantine crisis, the issue of diversifying supplies and expanding the range of products supplied is especially acute,” Serhiy Kasyanov, the head of the board of directors of KSG Agro, said.
According to the agricultural holding, in 2020, the export of wheat flour to Libya increased by 3.6 times compared to 2019, to 3,000 tonnes.
It is clarified that KSG Agro exported 172 tonnes of sugar to Libya, 4,000 tonnes of corn to Malaysia, 600 tonnes of barley to Oman.
KSG Agro is a vertically integrated holding. It is engaged in pig breeding, production, storage, processing and sale of grain and oilseeds.
For the nine months of 2020, the agricultural holding received $ 4.77 million in net profit, which is 52% less than in the same period in 2019, revenue decreased by 17%, to $ 14.67 million.
Ukraine can intensify trade with Asian countries, while maintaining focus on European markets, the Deputy Minister for Development of Economy, Trade and Agriculture, Ukraine’s Trade Representative Taras Kachka has said.
“We have a good dialogue with these countries. It is very likely that we will continue to talk about the intensification of trade. There are requests from Indonesia. There are talks with Malaysia,” he said during the discussion “Trade Wars: the Art of Defense.”
According to the trade representative, the demand for Ukrainian products from Asia is growing and this is a phenomenon of 2020.
“The fact that this year the dynamics of trade with Asia is greater than with the EU does not mean that we should forget the EU and flee to Asia,” he said.
Kachka added that next year Ukraine will “evolutionarily” update its Export Strategy, which will allow the country to be more predictable in terms of trade policy.
“The less “somersaults” we have, the better. In fact, we need a gradual systematic work in all directions,” the official said.
