Asia close: Stocks mostly higher ahead of Biden-Xi summit

by | Nov 15, 2021

Asia Pacific stocks put in modest gains at the start of the week, buoyed by a raft of mostly better-than-expected macroeconomic data out of China and ahead of a virtual summit between the leaders of the US and China scheduled for Monday evening US time.
Commenting on the market backdrop, Craig Erlam, senior market analyst at Oanda, said: “The market recovery has well and truly stalled in Europe while Asia is still struggling to get much uplift and the US is failing to build on record highs.

“In many ways, I’m encouraged by the resilience we’re seeing in the markets which are again factoring in higher inflation and earlier rate hikes. But then I wonder what will be the catalyst for the rally to continue.

“Of course, Covid restrictions this winter could be relatively light touch as vaccinations keep hospitalisations and fatalities low which would be a big plus for companies and economies, and support equity markets. But that will only become clear over time.”

The Shanghai Stock Exchange’s benchmark index dipped 0.16% to 3,533.39, but the Nikkei-225 finished 0.46% higher at 29,776.80.

Dragging on Chinese stocks was data showing that house prices dropped at a 0.25% pace on the month in October, their second consecutive drop.

Shares of China Vanke slipped 1.8% and those of PolyDevelopments and Holdings by 2.6%.

Hong Kong’s Hang Seng was up by 0.25% to 25,390.91 alongside, while South Korea’s Kospi climbed 1.98% to 1,029.03.

Boosting the Kospi index were electronics and biotech names, with Dow Jones Newswires pointing to continued net buying by foreign investors through the session on the back of optimism towards the semiconductor industry.

Memory-chip maker SK Hynix jumped 4.2% and Apple supplier, LG Innotek, leaped 6.2% higher.

Biotech outfit Celltrion jumped 9.1% after the European Commission gave its Covid-19 antibody treatment the green light.

Most other benchmark equity indices ended the day on a positive note as well.

Crude oil futures moved lower but natural gas futures were bouncing back on reports that Russia was keeping a tight grip on supplies to much of Europe.

Dollar/yen was roughly unchanged at 113.89.

Readings for Chinese industrial production and retail sales for October beat economists’ forecasts.

Pantheon Macroeconomics said Chinese industry appeared to have put the worst behind them, although retail sales were likely enjoying a “false dawn” and the property sector remained under pressure.

As an aside, Vietnam was set to start lifting restrictions on foreign tourists.

Japanese third quarter gross domestic product was reported down by 3.0% in seasonally-adjusted and annualised terms.

The figures were published ahead of the expected announcement on 19 November by Tokyo of a fiscal package, Pantheon Macroeconomics pointed out, adding that the outlook for new Covid-19 cases in the country was improving “so there is hope for a rebound [in household consumption] even before fiscal support kicks in”.

Related articles

Asia report: Most markets fall as US bond yields surge

Asia report: Most markets fall as US bond yields surge

(Sharecast News) - Asia-Pacific stock markets had a mainly downward trajectory on Thursday, following Wednesday's gains, as rising US Treasury yields and surging oil prices posed challenges for investor confidence. The benchmark 10-year US Treasury yield surged...

Latest Articles

US open: Stocks steady as inflation continues to ebb

US open: Stocks steady as inflation continues to ebb

(Sharecast News) - Wall Street was on a firmer footing on the last trading day of the third quarter as a key inflation indicator printed slightly below the consensus forecasts. "The September rut in stock indices paused into quarter end as both Eurozone and the Fed's...

FTSE 100 movers: Severn Trent, JD Sports rally

FTSE 100 movers: Severn Trent, JD Sports rally

(Sharecast News) - London's FTSE 100 was up 0.5% at 7,642.68 in afternoon trade on Friday. Severn Trent was the standout performer on the index after saying it was seeking to raise £1bn for a transformation plan expected to create 7,000 jobs across the Midlands. JD...

Annual UK property sales fall in August – HMRC

Annual UK property sales fall in August – HMRC

(Sharecast News) - Annual house sales fell sharply in August, provisional government data showed on Friday. According to HM Revenue and Customs, the seasonally-adjusted estimate of UK residential transactions was 87,010 last month. That was a 1% uptick on July 2023...

BofA Merrill Lynch upgrades Marks & Spencer to ‘buy’

BofA Merrill Lynch upgrades Marks & Spencer to ‘buy’

(Sharecast News) - Bank of America Merrill Lynch upgraded Marks & Spencer on Friday to 'buy' from 'neutral' as it argued the stock is still too cheap and consensus earnings too low. The bank said that despite the stock's outperformance year-to-date, it believes that...

Retail sales climb as September heatwave fades – BDO

Retail sales climb as September heatwave fades – BDO

(Sharecast News) - High street sales pushed higher last week, industry research showed on Friday, as delayed autumn spending finally looked to have got underway. According to the latest BDO High Street Sales Tracker, total like-for-like sales rose by 5.51% in the week...

Join our mailing list

Subscribe to our mailing list to receive regular updates!

No Fields Found.