INGOT Brokers AU | Asian market report (2017-10-02)

Asian market report (2017-10-02)

Asian equities traded higher in the green despite the thin trading volume due to the holidays in South Korea, China, India and Hong Kong.

These gains were led by the weaker domestic currencies as well as the strong economic data from China and South Korea, where China’s manufacturing activity grew at the fastest pace since 2012 in September as factories cranked up output to take advantage of strong demand and high prices and South Korea’s exports surging by 35 percent year-on-year to a record in September, its longest stretch of expansion since 2011, boosted by the steel product and memory chip sales.

 

Japan Stock Market (Nikkei 225)

Nikkei 225, the Japanese stock market index, settled higher at 20,347.48 rising by 0.18 percent or 37.02 points following the manufacturing data that expanded in September at a faster than expected pace.

Japanese’s manufacturers reported the strongest sentiment reading in a decade and the manufacturing PMI came out at 52.9, up from 52.2 in August.

Moreover, the weaker Japanese Yen lent further support for the equity market as the US Dollar firmed over the speculation that the US President Donald Trump might choose former Federal Reserve Governor Kevin Warsh to head the central bank, as he is considered more hawkish than current chair Janet Yellen thus he might lead to faster interest rates hikes.

 

Australian Stock Market (ASX 200)

Australian equities were in the green at today’s close, supported by the weaker Australian Dollar as well as the gains in the mining sector led by the strong Chinese factory activity that boosted the commodities higher.

The stock market index ASX 200 settled higher at 5,729.3 ginning 0.84 percent or 47.7 points.

Moreover, the Australian Industry Group stated that Australia's manufacturing sector continued to expand in September but a slower pace than expected.

The mining sector led today’s gains boosted by the rising commodity prices due to the strong Chinese factory activity, with BHP Billiton, Rio Tinto and Fortescue Metals Group rising by 1 to2 percent, while South32 jumped as much as 4.9 percent.

Furthermore, the banking sector settled higher led by the four major banks that closed higher gaining by more than one percent each.

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