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Asian Stocks Recovered Sharply

Highlights:

  • USA
    The Dow Jones advanced by 0.30% or 102.32 points, to 34,416.99. Meanwhile, the S&P 500 increased by 0.41% or 17.83 points, to 4,363.55. The Nasdaq gained 0.47% or 68.08 points, to 14,501.91. 
  • ASIA
    The Nikkei added 0.54% or 149.34 points to 27,678.21.
    The Kospi closed with a rise of 1.76% or 51.15 points to 2,959.46.
    Hong Kong’s Hang Seng Index rose by 3.07% or 735.24 points, to 24701.73.
  • EUROPE
    The EuroStoxx 50 index increased by 1.36%, the FTSEurofirst 300 gained 1.08%, and the Stoxx 600 recovered by 0.99%.

The pressure is a little less strong on Wall Street

Wall Street limited its decline on Wednesday. The markets erased part of their initial losses with the decline in energy prices, and an indicator of employment seemed encouraging.

Wall street settled in the positive territory on Wednesday. The Dow Jones advanced by 0.30% or 102.32 points, to 34,416.99. Meanwhile, the S&P 500 increased by 0.41% or 17.83 points, to 4,363.55. The Nasdaq gained 0.47% or 68.08 points, to 14,501.91. 

Wall Street rallied after Republicans in the US Senate offered US President Joe Biden and his party a deal to suspend the debt ceiling. Analysts say that October is getting its reputation as the most volatile month of the year. 

Most sectors managed to record gains. The utility sector was the biggest winner, adding 1.53%. Meanwhile, essential goods gained 1%, while the energy sector was the most affected, dropping by 1.05%.

Among the most prominent companies listed on the Dow Jones, Microsoft climbed by 1.51%. Also, Procter & Gamble added 1.36%, and Salesforce expanded by 1.29%. 

On the other hand, Dow Inc posted the biggest decline of 3.28%, Cisco shed 1.37%, and MSD lost 1.12%.

Oil prices are falling

The government will publish the September employment report on Friday. Meanwhile, ADP disclosed that 568,000 jobs were created in the private sector that month. The figure is better than expected. 

Another source of relief is that crude oil prices are falling again. They have jumped nearly 25% in a month and a half, following an increase in US crude inventories last week.

US equity markets have been trying to pause for several days after the sharp downward movement at the end of last month. 

The recent rise in energy prices has fueled the scenario of less short-lived inflation than expected. Meanwhile, central banks are preparing to reduce their asset buyback program.

Nikkei rebounded for the first time in 9 days

The Nikkei rebounded today due to a rise in US stocks. It gained 0.54% or 149.34 points to 27,678.21. Meanwhile, the Topix index dropped by 0.12% or 2.29 points. 

The Nikkei has been trading in the negative during the last two weeks. It was caused by external factors such as the crisis of the Chinese real estate giant Evergrande and the possibility that the United States would incite a suspension of payments of the national debt.

Meanwhile, the new Japanese Prime Minister, Fumio Kishida, outlined economic measures. He has spoken of pressuring companies to raise wages rather than increasing their dividends and increasing the tax burden on large corporations. 

These measures have been like cold water on the Nikkei, accumulating optimism before the change of the Administration. 

The technology giant Softbank climbed by 0.79%. Meanwhile, electronics and maritime transport accumulated the highest profits. 

Ship operators saw notable advances. Nippon Yusen rallied by 5.2%. Meanwhile, Kawasaki Kisen surged by 6.9%, and Mitsui OSK added 4%. 

Lasertec gained 2.73%, and Tokyo Electron advanced by 1.61%. Meanwhile, the video game company Nintendo increased by 1.10%. 

Kospi increased on bargain hunting

The Kospi closed with a rise of 1.76% or 51.15 points to 2,959.46. The Kosdaq technology stock index improved by 3.37% or 31.07 points, to 953.43.

Institutions net bought 613.5 billion won, driving the index up. It is the largest net purchase since the 14th of September. 

On the previous day, Senate Majority Leader Mitch McConnell proposed a plan to defer the debt limit until December. Expectations for an agreement on the debt limit issue led to improved investor sentiment. The expectation that the recently re-emerged tension between the US and China will be further eased also played a positive role.

Stocks with the highest capitalization recorded gains. High-tech Samsung Electronics raised by 0.42%.

Naver, South Korea’s leading internet service provider, expanded by 5.5%. Meanwhile, the pharmaceutical company Samsung Biologics gained 3.03%.

Hyundai Motor, the largest South Korean automaker, posted a rise of 3.61%, and its subsidiary Kia surged by 6.83%. 

Kakao, a banking and financial technology company, enjoyed a rise of 3.45%.

In contrast, SK Hynix, the country’s second-largest chipmaker, slipped by 0.83%. The chemical company LG yielded 0.81%.

 

The rise in technology boosted Hang Seng 

Hong Kong’s Hang Seng Index rose by 3.07% or 735.24 points, to 24701.73. 

The Hang Seng Enterprises Index advanced by 3.57% or 300.33 points to close at 8713.05. Meanwhile, the Hang Seng Technology Index gained 5.21% or 305.89 points to close at 6172.04.

Cheung Kong Group enjoyed a rise of 1.22%. Sun Hung Kai Properties progressed by 2.41%. Meanwhile, Henderson Land soared by 7.05%.

Technology companies such as Meituan and Alibaba enjoyed the biggest increases of the day. Meituan surged by 9.71%, and Alibaba added 7.28%.

Other tech companies also performed well. Tencent gained 5.6%, and Xiaomi climbed by 3.89%.

China Mobile expanded by 0.85%, and HSBC Holdings climbed by 1.89%. 

Meanwhile, real estate companies settled in positive territory. Apart from the aforementioned Henderson Land, New World Development and CG Services stood out. They grew by 2.97% and 2.88%, respectively.

Unlike the rest of the oil companies, Sinopec managed to avoid losses and appreciated a rise of 0.99%.

As for the financial companies, China Merchants Bank grew by 2.67%, and the insurance company Ping An soared by 7.03%.

 

European Equities rebounded

The main European stock markets increased on Thursday morning, mostly recovering the losses of the day before. The stock market has been supported by the decline in the risk in the United States and the drop in energy prices.

The EuroStoxx 50 index increased by 1.36%, the FTSEurofirst 300 gained 1.08%, and the Stoxx 600 recovered by 0.99%.

Hopes of a temporary Senate deal buoyed European indices. 

The markets are also supported by the decline in oil and natural gas prices. In recent days, sharp increases in the commodity have fueled fears of soaring inflation and faster-than-expected reduction of central banks’ support.

The European energy index slid by 0.34% while all the other sectors were in positive territory.

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