China stocks rally as trading resumes
Asian stocks traded mixed on Thursday despite a positive lead from Wall Street, with Chinese equities outperforming after mainland markets resumed trade following a week-long holiday.
Major U.S. indexes closed higher overnight, helped by a recovery in health care stocks and gains in energy. The Dow Jones Industrial Average closed up 0.7 percent, while the S&P 500 and Nasdaq composite gained 0.8 and 0.9 percent, respectively.
The key focus of investors on Thursday was on China markets, which reopened after National Day holidays. The Shanghai Compositeclimbed 3.8 percent to 3,168.89 by midday.
“China is back from its week-long National Day celebrations and has plenty to catch up on,” said Evan Lucas, market strategist at IG. Since the market closed on October 1, the Hang Seng has risen 8 percent, while H-shares, or Chinese companies that trade on the Hong Kong stock exchange, have gained 10.5 percent, according to IG.
“Strap in for a rally in China’s stock markets today. They’ve been closed for the last five trading days during which global equities rallied steadily, including overnight in the U.S.,” added Tim Condon, head of research for Asia at ING Bank.
Elsewhere in Greater China, Taiwan’s Taiex edged down 0.4 percent and Hong Kong’s Hang Seng Index slipped 0.7 percent. Bucking the downtrend, shares of movie theater equipment maker IMAX China, rose in their trading debut in Hong Kong, last seen at around HK$33.20 ($4.28), compared with the initial public offering (IPO) price of HK$31.00.
ASX hits 5-1/2 week high
Australia’s benchmark S&P/ASX 200 index rose 0.3 percent to 5,204.2, its fourth straight day of gains and touching its highest intraday level since Aug. 31, helped by gains in materials, energy and resource-related stocks as investors sought bargains after months of heavy selling.
Heavyweights BHP Billiton and Fortescue Metals rose 2.9 percent and 4.3 percent, respectively,
Shares of Macquarie Group were halted from trade as the country’s top investment bank announced it had agreed to buy ANZ Banking Group’s dealer finance portfolio for A$8.2 billion ($5.91 billion). Macquarie’s bid beat offers from U.S. private equity giant Carlyle and China’s HNA Group.
Elsewhere in the financial space, shares of Bank of Queensland rallied over 7 percent after the lender posted a record full-year profit of $318 million ($228 million), up 22 percent on its 2014 result.
Nikkei slips on soft economic data
Japan’s Nikkei 225 edged down 0.8 percent as investors digested machinery orders data that fell well short of expectations.
Machinery orders – a leading indicator of corporate capital spending – fell 3.5 percent on year in August, well below the 4.2 percent rise forecast by economists polled by Reuters.
The weak data appears to be at odds with the Bank of Japan’s more sanguine view on the economy. On Wednesday after finishing its two-day monetary policy meeting, the central bank said: “Japan’s economy continues to recover moderately although exports and production have been affected by the slowdown in emerging economies.”
South Korean stocks ticked lower as investors took profits after three days of gains for the market. The Korea Composite Stock Price Index(KOSPI) was quoted at 2,005.09 points, little changed from the previous close at 2,005.84 points.
Meanwhile, equity markets in Southeast Asia traded mixed. Singapore’sSTI edged down 0.4 percent, while Malaysia’s KLCI and Indonesia’sJakarta Composite rose 0.3 and 0.5 percent, respectively.
Indonesian equities have been on a roll in recent days, gaining 6.6 percent in the past three sessions, according to Reuters, as the rupiah rallied and the government unveiled fresh stimulus measures to support the economy.
Source: CNBC – China stocks rally as trading resumes
