Dipo Olowookere
By Investors Hub
Asian stocks rose on Tuesday as hopes grew of progress towards resolving the U.S.-China trade war and reports suggested British Prime Minister Boris Johnson has prepared a blueprint for a new Brexit deal.
Chinese and Hong Kong markets were closed for the 70th anniversary of the founding of the People’s Republic of China.
Japanese shares advanced despite the release of weak economic data. The Nikkei average climbed 129.40 points, or 0.6 percent, to 21,885.24, while the broader Topix closed 1 percent higher at 1,603.
Japan’s manufacturing sector contracted the most in seven months in September, as firms reduced production amid weak demand, survey data from IHS Markit showed. The corresponding index dropped to 48.9 from 49.3 in August.
Separately, the Bank of Japan’s quarterly Tankan survey revealed the manufacturing sector in Japan continued to expand in the third quarter, albeit at a slower pace, with a large manufacturing diffusion index score of +5.
That beat forecasts for +1, although it was down from +7 in the three months prior. The outlook came in at +2, exceeding expectations for 0 but also down from +7.
The unemployment rate in Japan came in at a seasonally adjusted 2.2 percent in August, beneath expectations for 2.3 percent and unchanged from the previous month.
Honda motor, Nissan Motor and Panasonic climbed around 3 percent as the yen weakened amid easing U.S.-China trade tensions.
Apple-related companies gained ground as JP Morgan raised its iPhone volume forecasts for the September and December quarters. Murata Manufacturing advanced 2.8 percent and TDK Corp gained 2.7 percent.
Australian markets rose sharply as the Reserve Bank of Australia reduced its interest rates further as widely expected.
The board of the Reserve Bank of Australia, governed by Philip Lowe, decided to reduce the cash rate by 25 basis points to 0.75 percent, saying an extended period of low interest rates will be required to reach full employment and achieve the inflation target.
Meanwhile, investors shrugged off survey results from IHS Markit showing that Australia’s manufacturing sector expanded at a slower pace in September.
The benchmark S&P/ASX 200 Index jumped 54.50 points, or 0.8 percent, to 6,742.80 while the broader All Ordinaries Index ended the session up 52.40 points, or 0.8 percent, at 6,853.
Adelaide Brighton, a manufacturer of cement, lime and dry blended products, rallied 2.3 percent after home prices in the country posted their biggest monthly jump in 2-1/2 years in September.
Retailers Wesfarmers and Woolworths Group rose around 1 percent. Airline Qantas Airways surged up 2.4 percent after oil futures plunged overnight, sending U.S. prices to their lowest settlement in a month.
Seoul stocks rose for the second straight day as the country’s consumer prices declined for the first time on record in September and exports continued to fall, adding pressure on the central bank to ease monetary policy.
Consumer prices fell 0.4 percent year-on-year in September after staying flat in August, a government report showed. The benchmark Kospi gained 9.37 points, or 0.5 percent, to finish at 2,072.42, led by bio and chemical stocks.
Samsung BioLogics soared 5 percent as it won a patent lawsuit against Switzerland-based pharmaceutical giant Lonza.
