Asian stock indices started the working week without any dynamics, while the stock markets of mainland China and Hong Kong went negative on the statistics.
China’s economy expanded 3.9% in the third quarter compared to the same period last year, the State Bureau of Statistics (GSO) said. Thus, the growth rate accelerated significantly compared to 0.4% in April-June. Analysts on average expected an increase of 3.4-3.5%.
China’s GDP in January-September increased by 3%. This is significantly below the target set by the authorities of the country as a whole for 2022 at the level of about 5.5%, experts say.
Retail sales in the country in September increased by 2.5% compared to the same month a year earlier, the CSO also reported. This is the minimum rate of recovery over the past four months. The consensus forecast assumed growth of 3.3%.
China’s foreign trade surplus widened unexpectedly in September, as import growth was significantly weaker than exports. Imports increased by only 0.3% in annual terms, exports grew by 5.7%. Analysts polled by The Wall Street Journal, on average, predicted the growth of the first indicator by 1%, the second – by 4%.
The Chinese Shanghai Composite index decreased by 1.2% by 08:37 Moscow time. Hong Kong’s Hang Seng plunged 5.4% to its lowest in more than thirteen years.
Shares of Internet companies Meituan (SPB: 3690) (-12.4%), Baidu Inc. (SPB: BIDU) (-10.7%) and Tencent (SPB: 700) Holdings Ltd. (-9.2%), as well as the developer Longfor Group Holdings Ltd. (-12.2%).
Retailers Alibaba Group (SPB: BABA) and JD.com Inc. (SPB: JD) lost 10.4% and 11%, respectively.
Among the components of Hang Seng, only six stocks show an increase in value, including HSBC bank (+0.5%), developer CK Infrastructure Holdings Ltd. (+3.4%) and electrical equipment manufacturer Techtronic Industries Co. (+1.1%).
The value of the Japanese Nikkei 225 increased by 0.5% by 08:33 Moscow time.
The stocks of the transport companies Kawasaki Kisen Kaisha Ltd. have risen most significantly. (+4.4%), Mitsui O.S.K. lines ltd. (+4.2%) and Nippon Yusen K.K. (+3.7%), as well as non-ferrous metal producer Sumitomo Metal Mining Co. (+4.1%).
The South Korean Kospi index added 0.9% by 08:30 Moscow time.
Quotes of securities of one of the world’s largest manufacturers of chips and electronics Samsung Electronics Co. rise by 2.7%, while the cost of automaker Hyundai Motor fell by a similar amount.
The Australian S&P/ASX 200 rose 1.5%.
The capitalization of the world’s largest mining companies BHP and Rio Tinto increased by 2.6% and 1.2%, respectively.
In addition, shares of all four largest banks in the country fell in price: Commonwealth Bank – by 1.2%, ANZ Bank – by 0.2%, Westpac Banking – by 0.6% and National Australia Bank – by 0.7%.
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.
Equity markets of the largest countries in the Asia-Pacific region fell on Friday following similar dynamics in other parts of the world, the only exception was the Hong Kong index.
Stock indices of Western European countries following the session on Thursday fell to multi-month lows, the American Standard & Poor’s 500 ended trading at the lowest level since November 2020 on concerns about the state of the global economy, as well as due to increased geopolitical tensions and expectations of further monetary tightening. – credit policy of a number of major world central banks.
China’s Shanghai Composite index fell 0.55%, to its lowest in almost five months, after losing 5.6% in September. Hong Kong’s Hang Seng edged up 0.3% on Friday, but fell 12% over the month. The fall of both indicators was recorded for the third month in a row.
Business activity in the industrial sector of China in September fell to 48.1 points compared to 49.5 points a month earlier, according to the Purchasing Managers’ Index (PMI), calculated by Caixin Media and S&P Global. This is the lowest level since May. A PMI value above 50 points indicates an increase in activity in the sector, below – its weakening.
Analysts, on average, expected the indicator to remain at the August level, according to Trading Economics.
Meanwhile, a similar official indicator rose to 50.1 points from 49.4 points in August, the State Statistical Office said. The indicator exceeded this level for the first time in three months.
The official PMI for services and construction fell to 50.6 points in September against 52.6 points a month earlier. Consolidated PMI fell to 50.9 points from 51.7 points. Thus, both indicators decreased to the minimum level over the past four months.
On the Hong Kong Stock Exchange, the most significant rise in value was shown by the papers of the developer Country Garden Holdings Co. (+9%), aluminum producer China Hongqiao Group Ltd. (+4.3%), pharmaceutical CSPC Pharmaceutical Group Ltd. (+3.1%), representatives of the financial industry China Construction Bank Corp. (+3%), ICBC (+2.8%) and China Life Insurance Co. (+2.3%), as well as oil China Petroleum & Chemical Corp. (+2.4%).
At the same time, the shares of sports goods manufacturers Li Ning (-6.4%) and Anta Sports Products (-4.3%), Internet company Meituan (-2.7%), automotive BYD (- 3.2%), online retailer JD.com (-1.7%).
The value of the Japanese Nikkei 225 fell 1.8% on Friday. In September, it fell by 7.7%.
The fall leaders were shares of automakers Mazda Motor (-8.2%), Mitsubishi Motors (-8%), Subaru (-6.3%), Nissan Motor (-6.3%).
In addition, the price of securities of the investment technology SoftBank Group (-2.6%), the manufacturer of consoles Nintendo (-3.1%), Fast Retailing Co, the largest clothing retailer in Asia, decreased. (-3.6%), consumer electronics manufacturer Sony (-3.2%).
South Korean index Kospi decreased by 0.7%.
Quotes of securities of one of the world’s largest manufacturers of chips and consumer electronics Samsung Electronics Co. rose 1%, while automaker Hyundai Motor fell 2.8%.
Retail sales in South Korea decreased by 1.8% in August compared to the previous month. The last time the growth rate was recorded in November last year.
Relative to August last year, sales increased by 2.3%, which was the first rise in three months.
On average, experts expected the first indicator to decrease by 0.1%, the second – by 0.8%.
Australia’s S&P/ASX 200 plunged 1.2% to its lowest in more than three months, trailing tech stocks. In September, it fell by more than 7%.
In particular, the share price of Xero Ltd (-4%), Wisetech Global (-5.6%) and Block Inc. decreased. (-5%).
At the same time, securities of gold mining companies, including Silver Lake Resources Ltd., rose in price. (+7.3%), Regis Resources Ltd. (+6.9%), St. Barbara Ltd. (+6.5%), Falcon Metals Ltd. (+5.3%).
The stock markets of the largest states of the Asia-Pacific region on Friday are declining following the world ones.
Stock indices of Western European countries following the session on Thursday fell to multi-month lows, the American Standard & Poor’s 500 ended trading at the lowest level since November 2020 on concerns about the state of the global economy, as well as due to increased geopolitical tensions and expectations of further monetary tightening. – credit policy of a number of major world central banks.
China’s Shanghai Composite index fell 0.3% by 8:24 pm, Hong Kong’s Hang Seng lost 0.1%.
Business activity in the industrial sector of China in September fell to 48.1 points compared to 49.5 points a month earlier, according to the Purchasing Managers’ Index (PMI), calculated by Caixin Media and S&P Global. This is the lowest level since May. A PMI value above 50 points indicates an increase in activity in the sector, below – its weakening.
Analysts, on average, expected the indicator to remain at the August level, according to Trading Economics.
Meanwhile, a similar official indicator rose to 50.1 points from 49.4 points in August, the State Statistical Office said. The indicator exceeded this level for the first time in three months.
The official PMI for services and construction fell to 50.6 points in September against 52.6 points a month earlier. Consolidated PMI fell to 50.9 points from 51.7 points. Thus, both indicators decreased to the minimum level over the past four months.
The most significant decline in quotations on the Hong Kong Stock Exchange is demonstrated by the shares of sports goods manufacturers Li Ning (-4.7%) and Anta Sports Products (-4.3%), the Internet company Meituan (-4.2%), automotive BYD (- 3.9%), online retailer JD.com (-2.9%).
The value of the Japanese Nikkei 225 fell by 2% by 08:20 Moscow time. Since the beginning of September, it has lost about 7%.
The fall leaders on Friday are shares of automakers Mazda Motor (-8.1%), Mitsubishi Motors (-7.1%), Subaru (-6%), Nissan Motor (-5.9%).
In addition, the price of securities of the investment technology SoftBank Group (-2.5%), the manufacturer of consoles Nintendo (-3.6%), Fast Retailing Co., the largest clothing retailer in Asia, is declining. (-4.3%).
The South Korean Kospi index decreased by 0.1% by 08:13 Moscow time.
Quotes of securities of one of the world’s largest manufacturers of chips and consumer electronics Samsung Electronics Co. rose 1.9%, while automaker Hyundai Motor – fell 2.2%.
Retail sales in South Korea fell by 1.8% in August compared to the previous month. The last time the growth rate was recorded in November last year.
Relative to August last year, sales increased by 2.3%, which was the first rise in three months.
On average, experts expected the first indicator to decrease by 0.1%, the second – by 0.8%.
Australia’s S&P/ASX 200 fell 1.1%, following technology stocks.
In particular, the share price of Xero Ltd (-3.9%), Wisetech Global (-5.6%) and Block Inc. decreased. (-3.3%).
