Asian Stock Markets Extend Rally Friday

September 6, 2019
Asian Stock Markets Extend Rally Friday

By Investors Hub

Asian stocks rose on Friday to extend gains from the previous session after separate surveys showed U.S. private payrolls and the services industry rebounding last month.

News that U.S.-China trade talks were back on the table also supported sentiment ahead of the release of U.S. jobs data for August later in the day.

Chinese stocks rose as Beijing continued to emphasize support for the economy. The benchmark Shanghai Composite Index climbed 13.74 points, or 0.5 percent, to 2,999.60 and ended the week up 3.9 percent, marking its best weekly gain since late June.

“(We) will use both broad and targeted RRR cuts in a timely manner as tools to guide financial institutions to guide more funds into inclusive finance, and ramp up support for the real economy,” China’s cabinet said in a meeting on Wednesday.

Hong Kong’s Hang Seng Index ended up 175.23 points, or 0.7 percent, at 26,690.76 despite global rating agency Fitch Ratings downgrading Hong Kong’s long-term foreign currency issuer default rating.

The rating agency observed that ongoing demonstrations have done long-lasting damage to international perceptions about the effectiveness of Hong Kong’s governance system and rule of law.

Japanese shares closed higher for the fourth straight day as the yen retreated against the dollar on the back of upbeat U.S. data and amid comments from Bank of Japan Governor Haruhiko Kuroda suggesting that cutting interest rates further into the negative zone is always an option.

The Nikkei 225 Index rose 113.63 points, or 0.5 percent, to 21,199.57, while the broader Topix closed 0.2 percent higher at 1,537.10.

Honda Motor jumped 3 percent and Panasonic gained 1.8 percent as the dollar climbed to a one-month high against the yen. Market heavyweight SoftBank declined 2.7 percent, while Fast Retailing rose 1.8 percent.

Daiwa Securities rose 0.9 percent after it announced a capital alliance with credit card company Credit Saison. Shares of the latter rallied 2.2 percent.

Rakuten slumped 5.2 percent on a Nikkei report that the e-commerce group will delay the commercial launch of its wireless carrier service by six months due to slow progress in building the network.

On the data front, a government report revealed that average household spending in Japan rose an annual 0.8 percent in July, matching expectations.

Australian shares eked out modest gains amid signs of a slight thaw in U.S.-China relations. The benchmark S&P/ASX 200 Index rose 34.10 points, or 0.5 percent, to 6,647.30, while the broader All Ordinaries Index ended up 31.90 points, or 0.5 percent, at 6,752.70.

Tech stocks paced the gainers after the Nasdaq closed up above 8,000 overnight. Afterpay Touch soared 4.1 percent and Computershare jumped 3.2 percent.

Rare earths producer Lynas Corp added 2.9 percent after it signed a pact with a city in Western Australia to explore a potential initial ore processing site.

Mining giants BHP and Rio Tinto rose 0.7 percent and 0.4 percent, respectively, while smaller rival Fortescue Metals Group gained 1.7 percent after completing a $600 million bond offering. The big four banks rose between 0.4 percent and 0.9 percent.

Gold miners Evolution, Newcrest, Northern Star, Regis Resources and Saracen Mineral Holdings lost 2-5 percent as gold fell its most in a day for 2019 on news that the U.S. and China plan to hold talks next month.

In economic news, investors shrugged off survey data showing that the construction sector in Australia continued to contract in August, albeit at a slower pace.

Seoul stocks extended gains for the third day as trade concerns abated and solid U.S. data helped ease global growth worries. The benchmark Kospi edged up 4.38 points, or 0.2 percent, to close at 2,009.13. Technology firms, financials and shipbuilders paced the gainers.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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