Asian Shares Appreciate Amid Fall in Chinese, Hong Kong Stocks

November 29, 2018
Asian Shares Appreciate Amid Fall in Chinese, Hong Kong Stocks

By Investors Hub

Asian stocks rose broadly on Thursday, though markets in China and Hong Kong ended in the red amid anxiety ahead of crucial meeting between President Donald Trump and Chinese President Xi Jinping on the sidelines of the G20 summit later this week.

While a substantive breakthrough is unlikely, the two sides may agree on a communiqué for a de-escalation of trade tensions.

Underlying sentiment remained supported across the region after Federal Reserve Chairman Jerome Powell said current interest rates are ?just below? neutral.

Chinese stocks fluctuated before closing sharply lower ahead of the much-anticipated meeting between the U.S. and Chinese presidents this weekend.

The benchmark Shanghai Composite Index tumbled 34.29 points or 1.3 percent to 2,567.44, while Hong Kong’s Hang Seng Index dropped 231.53 points or 0.9 percent to 26,451.03.

Japanese shares advanced despite the dollar weakening against the yen on expectations of a slowdown in the pace of rate hikes by the Fed. The Nikkei 225 Index rose 85.58 points or 0.4 percent to 22,262.60, while the broader Topix Index closed 0.4 percent higher at 1,659.47.

Consumer electronics and video game company Nintendo soared 4.1 percent after its Switch console set two new records from Thanksgiving to Cyber Monday. Nissan Motor rose 1.4 percent to snap a two-day losing streak.

In economic news, retail sales in Japan surged up a seasonally adjusted 1.2 percent in October, a government report showed. That exceeded expectations for an increase of 0.4 percent following the 0.2 percent decline in September.

Australian markets pared some gains after hitting a more than two-week high earlier in the day. The benchmark S&P/ASX 200 Index still closed up 33.30 points or 0.6 percent at 5,758.40 amid broad-based buying. The broader All Ordinaries Index climbed 35.60 points or 0.6 percent to 5,835.70.

Higher iron ore and copper prices helped lift miners. BHP Billiton gained 1.2 percent as its Spence copper mine resumed operations after a union strike. Rio Tinto advanced 1.7 percent after approving a $2.6 billion investment in its Koodaideri iron ore mine in Western Australia.

Financials followed their U.S. peers higher, with banks ANZ, Commonwealth and Westpac rising between half a percent and 0.7 percent.

On the other hand, waste management company Bingo Industries slumped 5.3 percent after the competition regulator criticized its proposed merger with rival Dial A Dump.

Energy stocks ended mixed despite oil prices falling more than 2 percent overnight. Poker machine maker Aristocrat Leisure declined 2.6 percent after reporting its full-year results.

In economic news, total new capital spending in Australia fell a seasonally adjusted 0.5 percent sequentially in the third quarter of 2018, official data showed, missing forecasts for an increase of 1.0 percent.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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