INGOT Brokers AU | Asian market report (2017-10-03)

Asian market report (2017-10-03)

Asian equity markets expanded their gains except for the Australian market following the green colored trading session on Wall Street, which was supported by the strong US economic data, even though the trading volume remains thin with China, Hong Kong and South Korea closed for the holiday.

The US manufacturing activity surged to its 13-year high in September at 60.8 up from 58.8 thus beating the market expectations as reported by the Institute for Supply Management. Moreover, construction spending rose following its two consecutive declines.

 

Japan Stock Market (Nikkei 225)

Japanese equities traded higher in the green boosted by the weaker Japanese Yen as well the strength from Wall Street’s yesterday’s trading session, where the Nikkei 225 settled higher near its one month’s high at 20,614.07 gaining 1.05 percent or 213.29 points.

Moreover, the gains of the automakers and the banking sector supported these gains, led by Honda Motor Co Ltd that rose by 1.1 percent and Mitsubishi UFJ Financial that added 0.43 percent, in addition to the gains of major exporters led by Canon Inc. that settle by 1.44 percent higher.

Meanwhile, the oil sector witnessed some losses due to the sharp decline in Oil futures, where Inpex Corp. lost 0.88 percent and Japan Petroleum fell by 1.28 percent.

The weakening Japanese Yen continues to provide support for the stock market, affected by the stronger US Dollar and the lack of any news that weigh on the safe haven.

 

Australian Stock Market (ASX 200)

Despite the weak domestic currency and the strong performance from Wall Street, Australian shares managed to settle lower ahead of the Reserve Bank of Australia’s interest rate decision where it left its interest rate unchanged at 1.5 percent.

ASX 200, Australia’s stock market index, lost 0.49 percent or 27.89 points to settle lower at 5,701.44 while the mining sector was in the green at today’s close with BHP Billiton Ltd up by 0.11 percent, Rio Tinto adding 0.49 percent and Fortescue Metals Group Ltd rising by 0.57 percent.

Even though that Sonic Healthcare’s UK joint venture Health Services Laboratories has received a 12-year contract to provide pathology and laboratory services to two London hospital, the company's shares fell by 0.7 percent.

The Australian Bureau of Statistics stated that the total number of building permits issued in Australia was up by 0.4 percent on month in August, coming in at 18,514, while the Housing Industry Association reported that new home sales in Australia by 9.1 percent on month in August

The Australian Dollar remained weaker due to the stronger US Dollar and the Reserve Bank of Australia leaving its interest rate unchanged at 1.5 percent, where the banking sector witnessed some losses with Commonwealth Bank of Australia shading 1.55 percent.

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