INGOT Brokers Australia | Asian market report (2017-11-01)

Asian market report (2017-11-01)

Asian markets ended Wednesday’s session in positive territories as investors digested extended gains in oil prices and the release of China's Caixin manufacturing Purchasing Managers' Index, which met expectations, with markets in Japan and South Korea leading the gains in the region.

Regarding the U.S central bank meeting, today expectation shows that the federal reserve is likely to keep interest rates at its current levels. However, investors will be looking for any indicators regarding interest rates rise next month.

Regarding the U.S Presidents choice for a new Fed Chair, Donald Trump is expected to reveal his decision for the new Fed Chair on Thursday, Analyst and news stations are expecting Trump to pick Fed Governor Jermore Powell.   

In greater China, major markets ended the session mostly in positive territories, with the Shanghai Composite edging up 0.08 percent to trade at 3,396.07 at the close, while the Shenzhen Composite edged up 0.058 percent to end the session at 2,003.44. Moreover, in Hong Kong, the Hang Seng index advanced 1.23 percent to trade at 28,594.06 at the close.

In economic news, China's Caixin manufacturing Purchasing Managers' Index for October met expectations, coming in at 51.0. The official PMI released on Tuesday had fallen just short of expectations.

Over in South Korea, equities ended the session in green territories, with significant gains in Teck stocks led the Kospi higher, South Korea’s leading index KOSPI rose by 1.31 percent to settle at 2,556.47 at the close.

In earnings news, Macau-based casino operator SJM Holdings announced a 16.5 percent decline in third-quarter profit compared to a year ago. Net profit for the quarter stood at 428 million Hong Kong dollars ($54.9 million). SJM shares performed worse than other Hong Kong casino stocks, trading lower by 0.15 percent.

 

Japan (Nikkei 225)

Japan’s Nikkei 255 ended the session on positive note on Wednesday to trade at 22,420.08 at the close; the index took a push from raising oil prices which reflected on the energy sector.

Against the yen, the U.S. currency rose to trade at 113.83, compared to Tuesday's close of 113.67 yen. Softness in the Japanese currency came after the Japanese central bank kept its monetary policy steady earlier this week.

In corporate news, Sony on Tuesday revised upwards its full-year profit for the fiscal year ending Mar. 31, 2018. The Japanese conglomerate said it expects full-year operating income to come in at 630 billion yen ($5.5 billion), substantially above a forecast of 585.8 billion.

 

Australia (ASX 200)

The Australian benchmark index ASX200 rose on Wednesday, Aussie share took a breath from the rise in the energy stocks apon rising oil prices. Australia’s leading benchmark ASX 200 advanced 0.49 to end the session at 5,937.76. at the close.

Energy stocks were particularly well supported as oil prices continued to push higher. Beach Energy jumped 7.7 per cent on a quarterly production update, while Oil Search was the exception after the stock fell 3 per cent after revealing an Alaskan acquisition.

Furthermore, the big four banks also provided support, with ANZ, NAB and Westpac climbing in the vicinity of 0.6 per cent, while CBA edged 0.1 per cent higher. NAB releases annual profits tomorrow

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