Asia report: Markets finish stronger after solid US session overnight
Asian markets were in the green as they closed on Wednesday, as investors took their lead from a solid session on Wall Street overnight, which itself was boosted by a strong earnings season in the US.
AUD/USD
$0.6496
19:08 24/04/24
GBP/NZD
NZD2.0999
19:07 24/04/24
Hang Seng
17,201.27
10:21 24/04/24
Nikkei 225
38,460.08
09:44 24/04/24
USD/JPY
¥155.1010
19:08 24/04/24
In Japan, the Nikkei 225 was ahead 1.42% at 22,158.20, as the yen weakened 0.22% against the dollar to last trade at JPY 107.24.
Gains were seen across many sectors in Tokyo, with the broader Topix index being led 1.14% by oil plays, technology firms and retailers.
On the mainland, the Shanghai Composite was up 0.8% at 3,091.31, and the smaller, technology-heavy Shenzhen Composite grew 1.08% to 1,803.84.
The gains in China were led by banking stocks, which were boosted by a Tuesday announcement from Beijing that the reserve requirement ratio was being cut by 100 basis points for most banks in the country.
“China's reserve requirement ratio cut is supportive of risk sentiment as banks' profit is expected to improve with lower funding costs,” noted analysts at OCBC Bank.
On the downside were Chinese carmakers, as investors voiced their concern that recently-announced plans to deregulate the auto manufacturing market could hurt the local industry.
South Korea’s Kospi added 1.07% to 2,479.98, while the Hang Seng Index in Hong Kong advanced 0.74% to 30,284.25.
Financial stocks and manufacturers were leading the Seoul benchmark higher, while the technology sector finished mixed.
Among the star performers in the South Korean tech space was Samsung Electronics, which surged 2.76%.
The positive sentiment in Asia came after a seriously strong session on Wall Street overnight, as investors approved of the release of a number of strong earnings reports.
Earnings on the S&P 500 for the current quarter are expected to be 18.6% higher than a year ago, according to data from Thomson Reuters I/B/E/S.
Oil prices were higher, with Brent crude last up 1.5% at $72.67 per barrel and West Texas Intermediate adding 1.77% to $67.72.
In Australia, the S&P/ASX 200 finished the day 0.34% above the waterline at 5,861.40.
A marginal fall for the financials subindex was offset by gains in consumer products, energy plays and the materials sector.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.3%, led higher by online retail provider Trade Me, which was up 2.3%.
Shares in local construction conglomerate Fletcher Building remained in a trading halt, as investors digested Tuesday’s underwritten NZD 750m rights issue at a 23% discount.
Both of the down under dollars were weaker on the greenback, with the Aussie last off just 0.01% at AUD 1.2876 and the Kiwi retreating 0.29% to NZD 1.3660.