Asian Stocks Climbed Despite Inflation Fears

Highlights:

• • USA
    The Dow Jones Industrials slipped by 0.025% or 8.69, to 34,746.25. The S&P 500 yielded 0.19% or 8.42, to 4,391.34. Meanwhile, the Nasdaq shed 0.51% or 74.48 at 14,579.54. 
  • ASIA
    The Nikkei settled with an increase of 1.6% or 449.26 points, to 28,498.20.
    The Kospi did not operate on Monday for the national holiday in South Korea.
    Hang Seng climbed by 1.96% or 487.24 points, to 25,325.09. 
  • EUROPE
    The EuroStoxx 50 index cut 0.18% while the FTSEurofirst 300 added 0.08% and the Stoxx 600 shed 0.14%.

Wall Street ended last week with gains

Wall Street returned to profits at the beginning of a usually volatile month. Disappointment by the September employment report was neglected after the temporary suspension of the debt ceiling. 

The US released employment figures on Friday, reporting 194,000 jobs created in the private sector in September. The number was lower than expected, indicating a slowdown in the labor market after August’s and July’s figures. 

The unemployment rate slipped by 4.8% in September, and bond yields rose above 1.6%. The data have raised hopes that the Fed will delay the withdrawal of its monetary stimulus. 

Meanwhile, the US Senate voted to suspend borrowing until December. It prevented the country from incurring a suspension of payments on its national debt as of December.

Wells Fargo analysts believe that it will help more robust earnings in the coming months. Experts think the volatility will persist in the market this week too, and the stock market will operate with less volume.

Even though they are settling in the negative territory, main indexes on Wall Street posted weekly gains.

The Dow Jones Industrials slipped by 0.025% or 8.69, to 34,746.25. The S&P 500 yielded 0.19% or 8.42, to 4,391.34. Meanwhile, the Nasdaq shed 0.51% or 74.48 at 14,579.54. 

On the other hand, the Dow Jones added 1.26% every week, the S&P 500 gained 0.98%, and the Nasdaq increased by 0.60%.

 

Nikkei keeps rising for the third consecutive day

The Tokyo Stock Exchange closed with a rise today after the Japanese Prime Minister commented that he will not immediately raise rates on business profits. It created a sense of security, and the Japanese stock market has remained in the high price range since then. 

The Nikkei settled with an increase of 1.6% or 449.26 points, to 28,498.20. Among the equities, 208 of them advanced, 13 stocks dropped, and four stocks remained unchanged. 

The trading volume of the first section was 1,194,170,000 shares, and the trading value was 2,708.5 billion yen. 

By industry, the shipping, air, and mining sectors registered the highest rate of increase. Only the electricity and gas industry fell. 

Softbank Group was the top contributor to the price increase, followed by Fast Retailing. In addition, Panasonic surged by 6.67%, and Nexon climbed by 6.61%. 

On the other hand, Tokyo Electron was the top contributor to the price decline, followed by Yaskawa Electric. Meanwhile, Shiseido lost 1.23%. 

Electronics maker Sony advanced by 4.42%.

Meanwhile, semiconductor component manufacturers ended in the negative territory. Lasertec slipped by 2.81%, and Tokyo Electron lost 1.20%.

 

The Hang Seng neared a four week high

The Hong Kong stock market closed higher on Monday and reached a high of nearly four weeks. The surge of technology giants such as Alibaba and Meituan supported the rise. 

Hang Seng climbed by 1.96% or 487.24 points, to 25,325.09. 

The Hang Seng Technology Index gained 3.17% or 196.92 points, to 6,403.69. 

Meanwhile, e-commerce giant Alibaba jumped by 7.91%, and Meituan rallied by 8.36%.

After five months of investigations, the Chinese market regulator imposed a sanction of about 533 million dollars on Meituan for “monopolistic conduct.” A fine of 3% of China’s domestic sales in 2020 of 114.748 billion yuan, amounting to 3.442 billion yuan.

 

But Jefferies analysts said that with the elimination of regulatory suspense, Meituan’s long-term prospects are bright.

Alibaba rose for the fourth consecutive trading day. Previously, according to the publicly disclosed information, Daily Journal Corp, chaired by Berkshire Hathaway’s vice chairman Charlie Munger, took Alibaba’s shareholding in the third quarter. An increase of 83%.

Sun indices closed mixed. The services sector shed 1%, while the Real estate declined by 0.05%. On the other hand, Finance gained 0.73%, and Commerce and Industry extended by 3,25%.

In the financial area, China Merchants Bank rallied by 4.98%. On the contrary, the insurer AIA slid by 1.5%. 

In Real estate, Country Garden yielded 3.23%, and CG Services added 3.28%. 

Chinese companies had a positive day. Operator China Unicom hiked by 1%, and the oil company Petrochina gained 1.23%.

 

Sensex and Nifty posted slight gains

Indian stock market indices add a slight 0.1%. On the Nifty, metal, media, financial services, auto, and banking sectors climbed by more than 1%. The IT sector was the biggest loser, followed by the technology companies. 

On the Sensex, 20 stocks closed with an increase, and ten stocks dropped. Top gainers were Maruti, Powergrid, and ITC. Meanwhile, TCS, Tech Mahindra, and Infosys slipped the most. 

Nifty touched a high of 18,041.95, and Sensex touched 60,476.13 during the day. 

The trend remains positive, but analysts think picking stocks from a short-term perspective should be treated with caution. 

 

Europe is looking for a trend, commodities in support

The main European stock exchanges started Monday trading mixed. Fears about inflation and expectations of quarterly results of companies weigh on the market. 

The EuroStoxx 50 index cut 0.18% while the FTSEurofirst 300 added 0.08% and the Stoxx 600 shed 0.14%.

Brent oil reached its highest level for three years. Meanwhile, the ten-year German Bund yield, the benchmark for the eurozone, hit its highest since May at -0.124%. 

Bond yield rise supported the banking sector. Their Stoxx Index advanced by 0.74%. Société Générale in Paris increased by 0.71%.

Also, Carrefour, which registered some gains at the beginning of the session, dipped by 0.78%.

The British online fashion and cosmetic retailer ASOS lost 14% after issuing a warning on its results and announcing the resignation of its CEO.