Asian stocks rise as global gains ease China


SHANGHAI: Asian stocks mostly rose on Tuesday after the US and some European markets advanced overnight, though the hangover from China’s slowing growth still lingered.

A Reserve Bank of Australia decision to leave interest rates unchanged at a record low 2.0 percent gave the Aussie dollar a kick, and the S&P/ASX 200 index was also buoyed by more bullish sentiment.

The Dow Jones Industrial Average pushed back into positive territory for 2015 on Monday, rising 0.94 percent — lifted by a technical bounce in petroleum shares and data showing a seven-year peak in US construction spending.

US spending on building new homes, highways and other projects came in at an annual pace of $1.09 trillion in September, the highest level since March 2008.

That added to the cheer as an acceleration in eurozone manufacturing activity helped push most European stocks higher on Monday.

But China, the world’s second largest economy, remains the spoiler after a closely watched measure of manufacturing activity showed contraction.

In New York Monday the broad-based S&P 500 gained 1.19 percent, while the tech-rich Nasdaq Composite Index jumped 1.45 percent.

“Investors have realised the world isn’t about to end,” said Shane Oliver, a Sydney-based global strategist at AMP Capital Investors. “The rally has been partly contingent on support from central banks, with the easing in China and talk of easing in Europe.”

Sydney closed up 1.42 percent after Tuesday’s central bank decision to keep the cash rate at 2 percent, while Seoul advanced 0.65 percent.

Shanghai had slipped 0.25 percent at the close, while Hong Kong ended 0.89 percent higher.

Wellington rose 0.64 percent to a fresh record high.

The Tokyo market was shut for a public holiday.

China’s Purchasing Managers’ Index came in at 48.3 in October, below the 50 point mark which separates expansion from contraction, an independent survey issued by financial publisher Caixin Media showed on Monday.

Standard Chartered cuts jobs
Elsewhere, Asia-focused British bank Standard Chartered said Tuesday it would axe 15,000 jobs and raise $5.1 billion in capital after posting a “disappointing” third-quarter loss as it struggles to return to growth.

The job losses are part of a major restructuring that will cost around $3 billion, the bank said.

Standard Chartered shares closed down 2.5 percent in Hong Kong.

Oil prices were mixed in Asia Tuesday, hinting at caution before the release of US government data that will gauge crude demand in the world’s biggest economy.

At around 0830 GMT Tuesday, US benchmark West Texas Intermediate for delivery in December was up six cents at $46.08. Brent crude for December turned lower and was trading 24 cents down at $48.55 a barrel.

Asian stocks had fallen Monday and oil prices dropped as investors fretted over the China manufacturing data.

“The savage selling yesterday particularly looked to be overdone,” Evan Lucas, a markets
strategist at IG in Melbourne, said in an e-mail to clients.

In Singapore trade at around 0830 GMT, the US dollar was down against the Singapore dollar, Taiwan dollar, South Korean won, Philippine peso, Indonesian rupiah, Chinese yuan, Indian rupee, Malaysian ringgit and Thai baht.



Please follow our commenting guidelines.

Comments are closed.