Asian stock markets experienced a surge as China made a strategic move to reduce the proportion of bank reserves, setting a positive tone for regional trading. Here’s a roundup of how the major markets fared:
Tokyo’s Nikkei: The index closed higher for the fifth consecutive day, finishing at 32,710.62 points, marking a gain of 91.28 points or +0.28%. Investors kept a keen eye on the upcoming release of US non-farm payrolls, which is expected to offer valuable insights into the direction of Federal Reserve (Fed) interest rates.
Australia’s S&P/ASX 200: This index closed at 7,278.30, reflecting a slight dip of 27.00 points or -0.37%. Similarly, the All Ordinaries index concluded at 7,489.90, down 27.90 points or -0.37%. Weak corporate results and reports of slower-than-anticipated household lending in Australia contributed to this performance.
South Korean Composite (KOSPI): The South Korean index closed slightly higher at 2,563.71 points, marking an increase of 7.44 points or +0.29%. Investors in South Korea eagerly awaited the release of key US employment reports while observing the strengthening of the South Korean won against the US dollar.
China’s Shanghai Composite: The Shanghai Composite index concluded at 3,133.25 points, up 13.37 points or +0.43%. Real estate stocks led the gains as Chinese authorities unveiled various measures to bolster the housing market. Additionally, positive momentum stemmed from China’s manufacturing index, which returned to expansion in August.
In Hong Kong, stock exchanges suspended trading on September 1st as the Hong Kong Observatory raised its warning for Super Typhoon Saola to Level 8, prioritizing safety amid adverse weather conditions.
China’s decision to reduce the proportion of bank reserves has generated optimism in the region, with investors closely monitoring global economic indicators, particularly the US non-farm payrolls release, for insights into the future trajectory of the Federal Reserve’s interest rates. While certain markets faced challenges, the overall sentiment remained buoyant, reflecting the resilience of Asian economies in the face of evolving economic dynamics.