Smart Recovery In Asian Markets

Asian markets recovered from the lows on Friday amidst a recovery in crude oil prices and positive U.S. stock futures. All major benchmarks closed in the green despite investors anxiously awaiting the Federal Reserve’s annual Jackson Hole conference later in the week for cues on possible asset purchase tapering timeline.

China’s Shanghai Composite Index rallied by 1.45 percent or 49.80 points to end trade at 3,477.13 amidst relief over reports that there were no new locally transmitted Covid-19 cases for the first time since July. Sentiment also improved upon govt official’s comment on the country’s cross-cyclical macroeconomic policy and its stabilizing effect on economic fluctuations.

Japan’s Nikkei 225 gained 480.99 points or 1.78 percent to close at 27,494.24, recovering smartly from Friday’s multi-month low. Auto components supplier Denso Corp, marine transporting company Kawasaki Kisen Kaisha and international shipping company Mitsui O.S.K Lines were the top gainers with uptick of more than 5 percent. Kobe Steel declined by 1.71 percent followed by Sumitomo Osaka Cement Co that fell by 1.55 percent.

Korean Stock Exchange’s Kospi Index gained 29.70 points or 0.97 percent to close at 3090.21. Trading was within the range of 3064.65 to 3111.81. Shares of battery maker LG Chem Ltd declined 11.14 percent following General Motors Co’s recall of extra 73,000 Chevrolet Bolt cars that use the South Korean firm’s batteries.

The Hang Seng Index of the Hong Kong Stock Exchange recovered from a nine-month low in the previous week to gain 265.28 points or 1.07 percent to close at 25,115.00. The day’s high was at 25,479.00 and low was at 25,051.12.

The S&P ASX200 gained 29 points or 0.39 percent in Monday’s trade to close at 7,489.90, around 1.87percent below its 52-week high of 7632.80. Markets mostly shrugged off multi-month lows in manufacturing and services PMI data as well as coronavirus induced lockdown situations.

Pilbara Minerals bounced back 11.39 percent after a two-week sell-off. Artificial Intelligence company Appen Ltd gained 7.09 percent in the run-up to results declaration on Thursday. Aerial survey company Nearmap, coal producer Whitehaven Coal and property investment management company Charter Hall group all gained more than 6 percent.

Health insurer NIB Holdings lost 11.03 percent despite upbeat results upon concerns over deferment in healthcare treatments. TPG Telecom declined by 5.78 percent and G8 Education lost 5.71 percent. Ampol which bid for New Zealand’s Z Energy shed 4.76 percent whereas Super Retailer Group declined by 4.62 percent.

The NZX50 of the New Zealand Stock Exchange gained 123.58 points or 0.95 percent to close at 13,064.07 amidst relief on RBNZ’s status quo on interest rates last week. The index closed trading at 4.25 percent below the 52-week high of 13643.78.

Oil and gas refiner and marketer Z Energy topped the price charts with a rally of 14.10 percent following confirmation that it received bid from ASX-listed fuel retailer Ampol which owns the Gull chain. Corporate travel technology company Serko gained 10.88 percent. Cancer diagnostics company Pacific Edge gained 6.30 percent whereas transport and logistics company Mainfreight added 4.97 percent.

Telecommunications network company Chorus was the biggest loser with a decline of 2.94 percent in the backdrop of disappointing results. Heartland group declined by 2.78 percent whereas Tourism Holdings lost 1.73 percent.

On Friday, the Nasdaq 100 had closed at 15092.57, up 158.63 points or 1.06 percent whereas the Dow Jones Industrial Average had ended at 35,120.08, up 225.96 points or 0.65 percent as markets weighed in the dip in initial jobless claims to fresh pandemic low as well as the resurgence in the delta variant of coronavirus cases.

Source: Read Full Article