Asian stock markets gained in early trading Wednesday as trade tensions eased and despite weaker-than-expected manufacturing data from China.
was up 1.5% following some robust earnings reports after Tuesday’s closing bell. Overnight gains in U.S. equities also helped the risk-on mood. Investors in Japanese equities are embracing risk amid the ongoing earnings season, with Mazda
up 2% ahead of its earnings report later today. Sony
was up 3.7% after it reported that its net profit beat forecasts by ¥173 billion after the closing bell yesterday. Honda’s
second-quarter profit also rose sharply, helping boost its shares today by 5.7%. Meanwhile, yields were higher across the board in long-term debt ahead of the Bank of Japan’s monetary policy announcement, where it is widely expected to stand pat. The benchmark 10-year JGB yield is up half a basis point at 0.120%. The U.S. dollar retreated against a basket of major currencies during Asian trading, adding to regional weakness concerns.
Chinese equity benchmarks were higher, amid lack of negative surprises from the latest economic data. The official manufacturing PMI was 50.2 in October compared to consensus 50.6 and 50.8 in the prior month, marking the lowest reading since July 2016. Non-manufacturing PMI showed similar weakness, at 53.1 versus 54.1 in September, its lowest in 14 months. Despite that, Chinese stocks rose, with the Shanghai Composite
up about 1% and the smaller-cap Shenzhen Composite
Hong Kong’s Hang Seng Index
also rose about 1%, with Sunny Optical
rising 7% and 5% respectively. Chinese energy stocks were doing well, too, with China Shenhua
adding 3.6% and 2.3% respectively. Among other major stocks, Tencent
rebounded 2.4%, AIA
added 1% and Xiaomi
New Zealand’s S&P/NZX 50
was 0.9% higher while Korea’s Kospi
rose a meager 0.2% as Samsung
slipped after posting record quarterly profit but disappointing phone sales. Australia’s benchmark S&P/ASX 200
was essentially flat. Benchmarks in Taiwan
posted strong gains.
Providing critical information for the U.S. trading day. Subscribe to MarketWatch’s free Need to Know newsletter. Sign up here.
Source : MTV