Asian stock markets demonstrated resilience and posted positive gains, driven by positive cues from the Dow Jones and other international indices.
In Tokyo, the Nikkei closed at 31,075.36 points, marking a substantial gain of 548.48 points or +1.80%. The surge was attributed to investors seizing opportunities to acquire undervalued stocks after five consecutive days of market declines. The Nikkei’s performance mirrored the upward trajectory observed in US and other Asian stock markets.
Australia’s S&P/ASX 200 and All Ordinaries also ended the day on a positive note. The S&P/ASX 200 closed at 6,925.50 points, advancing by 35.30 points or +0.51%, while the All Ordinaries secured an increase of 35.30 points or +0.50% to close at 7,117.50 points. The bullish sentiment was fueled by reports of Australia surpassing expectations with a higher trade surplus in September. Investors are now eagerly awaiting the release of Australia’s August retail sales report.
However, the South Korean Composite (KOSPI) faced challenges for the second consecutive day, closing at 2,403.60 points, down 2.09 points or -0.09%. Concerns persist over the possibility of the US Federal Reserve (Fed) maintaining high-interest rates for an extended period to combat inflationary pressures.
Hong Kong’s Hang Seng Index rebounded from an 11-month low, closing at 17,213.87 points, registering an increase of 18.03 points or +0.10%. The recovery followed two consecutive days of losses and aligned with the performance of foreign stock markets. This rebound was underpinned by the decline in US government bond yields, which retreated from a 16-year high following the release of US private sector employment figures that fell below expectations. This development has stoked expectations that the Federal Reserve (Fed) may postpone interest rate hikes.
It’s worth noting that the Chinese stock market remained closed today in observance of National Day.
As markets across Asia respond to evolving global dynamics, investors are closely monitoring central bank policies and economic indicators for cues on future market direction.