INGOT Brokers AU | Asian market report (2017-10-16)

Asian market report (2017-10-16)

Equities in Asia settled mostly higher in the green at today’s trading session to extended their gains for the second straight trading session, led by Wall Street’s gains on Friday and higher commodity prices as well as the weaker Japanese Yen.

Led by gains in steel and cosmetics firms, supported by the expectations that the political relationship between South Korea and China would improve, the South Korean market edged higher. However, these gains were limited by the tech sector profit-taking following SK Hynix recent rally.

Moreover, the disappointing trade balance data for the early parts of today’s trading session weighed on today’s gains. The South Korean stock market benchmark KOSPI added 0.26 percent or 6.43 point to settle higher at 2,480.05.

Meanwhile, the Chinese stock market lost grounds during today’s trading session over the disappointing profit forecasts, despite the positive inflation data as well as the People’s Bank of China Governor Zhou Xiaochuan stating that the economy was expected to grow 7 percent in the second half of this year, accelerating from the first six months and defying widespread expectations for a slowdown. China’s Shanghai Composite fell by 0.36 percent or 12.05 points to end lower at 3,378.47.

 

Japan (Nikkei 225)

Japan’s equity market rose to settle higher, boosted by the weaker domestic currency as well as the gains of the export and finance stocks. Furthermore, the expectations that the Prime Minister Shinzo Abe’s government will comfortably win elections on Sunday also lent support for the equities.

Japan’s Nikkei 225 rose by 0.47 percent or 100.38 points to settle higher for the ninth consecutive trading session at its fresh 21-years high.

The weaker Japanese Yen lift the major exporters, Automakers and Financials higher, with Sony and Mitsubishi Electric are rising more than 1 percent each. Toyota and Honda are slightly higher as well as Mitsubishi UFJ Financial and Sumitomo Mitsui Financial rising by more than one percent.

 

Australia (ASX 200)

Australia’s stock market index ASX200 settled higher in the green at 5,846.76 gaining 32.61 points or 0.56 percent at its highest level since June 2017 near its nine year’s high, supported by the higher commodity prices while the stronger domestic currency kept this gain limited.

The strong Chinese demand boosted by the strong import data from Friday’s trading session led the Iron ore prices higher by 4.5 percent thus the Mining sector settler higher as well.

BHP Billiton rose by more than two percent, Fortescue added more than one percent and Rio Tinto exceed a three percent gain.

Moreover, Australia’s four major banks were in the green at today’s session’s end, but these gains didn’t exceed the 0.7 percent mark.

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