INGOT Brokers AU | Asian market report (2017-10-19)

Asian market report (2017-10-19)

Following the mixed economic data from China and Japan released throughout the Asian trading session today, equities’ settled in both directions with Japan and Australia expanding their winning streak.

The Chinese stock market witnessed a red colored trading session led by the declines in the financials and property developers as well as the mixed economic data, Shanghai Composite dropped by 0.34 percent or 11.62 points to settler lower at 3,370.17.

China's third-quarter GDP numbers came in line with expectations and Industrial Production as well as Retail Sales were above their estimates on their yearly basis while Fixed Asset Investment came in below their expectations.

Although that the GDP numbers were in line with their estimates, the market pricing of a larger economic growth weighed negatively on the country’s stock market.

South Korea’s KOSPI lost 9.85 points or 0.4 percent to end the session at 2,473.06 after the Bank of Korea kept its interest rate unchanged at the record low of 1.25 percent for the 13th straight month in addition to the decline of the tech sector heavyweights Samsung Electronics and  SK Hynix.


Japan (Nikkei 225)

Japan’s stock market index Nikkei 225 rose by 0.4 percent or 85.47 points to settle higher at 21,448.52 posting fresh several years’ high and expanding its winning streak to thirteenth consecutive trading session.

Today’s gains are boosted by the weaker Japanese Yen that continues to provide support the country’s exporters and automakers.

Meanwhile, the mostly negative trade data weighed heavily on today’s trade thus limiting today’s gains.

On the other hand, Kobe Steel Ltd surged by 6.65 percent to end today’s trading session at 881.5 after the announcement from three Japanese automakers that they haven't found any vehicle safety issues from aluminum supplied by them.


Australia (ASX 200)

The positive labour market data led the Australia stock market higher posting its seventh consecutive gain where the ASX 200 gained 0.1 percent or 5.65 points to settle at 5,896.13.

Australia’s Unemployment Rate fell to its four years low at 5.5 percent after adding more jobs than the expectations for the month of September.

Meanwhile, the losses in the mining sector kept today’s gains in check as Rio Tinto Ltd lost 2.54 percent and South32 Ltd fell by 2.48 percent after warning of cost pressures from rising raw material costs and a weaker US Dollar.

Rio Tinto and two of its former executives are accused of inflating the value of an African coal business that cost the company a $2.9 billion write-down.

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