Friday 25th September: Asian markets mixed as new stimulus package hopes rise

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Global Markets:

  • Asian Stock Markets : Nikkei up 0.51%, Shanghai Composite down 0.12%, Hang Seng down 0.58%, ASX up 1.51%
  • Commodities : Gold at $1875.65 (-0.07%), Silver at $23.24 (+0.17%), Brent Oil at $42.07 (+0.31%), WTI Oil at $40.39 (+0.20%)
  • Rates : US 10-year yield at 0.668, UK 10-year yield at 0.205, Germany 10-year yield at -0.512

News & Data:

  • (GBP) Public Sector Net Borrowing 35.2B vs 40.6B expected
  • (USD) Unemployment Claims 870K vs 845K expected
  • (CHF) SNB Policy Rate -0.75% vs -0.75% expected
  • ECB’s Villeroy: Inflation Is Not Yet Where We Want It

Markets Update:

Asian stock markets are mixed on Friday following the positive cues overnight from Wall Street and on optimism about a U.S. stimulus package as House Democrats reportedly plan to unveil a new $2.4 trillion relief bill in the coming days. U.S. stocks ended positive in choppy trade on Thursday, led by a dogged comeback in the technology sector, having initially sold off on higher-than-expected unemployment claims.

In Japan, the Nikkei 225 and the Topix index both added 0.5%. Hong Kong’s Hang Seng index was down about 0.6%. Mainland Chinese stocks were also lower, with the Shanghai composite down 0.1% while the Shenzhen component dipped fractionally.

The broader S&P/ASX 200 index was higher by 1.5% on the day. The ‘Big Four’ banks got a boost after the federal government said it would simplify bank lending rules to help people obtain loans and boost the economic recovery.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 94.237 after rising from levels below 93 this week. The dollar’s strength this week has battered commodities, with gold set for its worst week in more than a month.

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