Mixed Asian markets after China’s economy grow 3.9% in Q3
by Brian Neeley October 24, 2022 in Market
Mixed Asian markets after China’s economy grow 3.9% in Q3
TOKYO – Asian stocks rose mostly on Monday, but benchmarks in Hong Kong and Shanghai fell after Beijing reported that the Chinese economy has picked up in the previous quarter.
Market watchers are keeping a watchful eye on inflationary pressures and any signs of a risk of a regional slowdown.
The second-largest economy grew at a 3.9% annual pace from 0.4% last quarter, but it was still among the slowest expansions in decades as the country repeatedly shut down cities to fight the virus outbreak. Wrestled with
Japan’s benchmark Nikkei 225 NIK, up +0.62%, added 0.6% in morning trade. Australia’s S&P/ASX 200 XJO was up +1.52% by 1.5% and South Korea’s Kospi 180721, gained +0.92% 0.9%. Hong Kong’s Hang Seng HSI -4.99%, dropped 4.9%, while the Shanghai Composite Index SCHCOMP, -0.89%, dropped 0.9%. Stocks in Taiwan Y9999, gained +0.47% and Indonesia JAKIDX, up +0.85%.
In China, Xi Jinping awarded himself a third five-year term as leader of the ruling Communist Party. Xi gave no indication of a plan to change the grim “zero-Covid” strategy that has crippled trade and business. He also indicated no change in policies for strained relations with Washington and its Asian neighbours.
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The future of London’s FTSE 100 was cut short after former Prime Minister Boris Johnson announced that he would not run to lead the Conservative Party. Former Treasury chief Rishi Sunak is now the favorite to replace Liz Truss, who last week caused turmoil in financial markets following his tax-cut economic package.
Wall Street ended last week with a broader rally, with technology stocks, retailers and health care companies taking a big chunk of the gains.
The S&P 500 SPX rose +2.37% to 3,752.75, a weekly gain of 4.7%, its biggest weekly gain since June.
The Dow DJIA, up +2.47% 2.5%, closed at 31,082.56 and the Nasdaq Composite comp, +2.31% added 2.3%
Investors focus on corporate earnings as they look for clues about how inflation and rising interest rates are shaping global economies.
The Federal Reserve is expected to raise interest rates by another three-quarters of a percent at its meeting in November. This is three times the size of the Fed’s usual move.
In currency trading, the US dollar USDJPY was up +0.82% from 147.65 yen to 148.82 Japanese yen. The Bank of Japan intervened on Friday to boost the yen after the dollar crossed the 150 yen level. The dollar fell after the intervention of the report. The EUR/USDEUR is trading +0.27% up at 98.30 cents, down from 98.62 cents.
The rising strength of the dollar against the yen and other currencies has added to inflationary pressures in those countries by raising the cost of imports and debt repayment.
Benchmark US crude CLZ22, -0.58% in energy trading, fell 43 cents to $84.62 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude BRNZ22, the international standard, fell 25 cents to $93.24 a barrel, down -0.53%.
Source: news.google.com
