Monday 20th November 2023: Asia-Pacific Markets Begin Week on High, China Holds Steady on Lending Rates

Global Markets:

  •  Asian Stock Markets : Nikkei down 0.64%, Shanghai Composite up 0.43, Hang Seng up 1.70% ASX up 0.13%
  • Commodities : Gold at $1982.05 (-0.13%), Silver at $23.69 (-0.64%), Brent Oil at $81.48 (0.93%), WTI Oil at $76.83 (1.00%)
  • Rates : US 10-year yield at 4.455, UK 10-year yield at 4.137, Germany 10-year yield at 2.586

News & Data:

  • (USD) Housing starts 1.37M vs 1.35M expected
  • (USD) Building Permits  1.49M vs 1.45M expected
  • (CAD) IPPI m/m -1.0% vs 0.2% expected
  • (CAD) RPPI m/m  -2.5% vs -2.0% expected

Markets Update:

Asian-Pacific markets commenced the week on an upward trend, bouncing back from the previous session’s downturns across major bourses. China opted to maintain its benchmark lending rates, with the one-year loan prime rate pegged at 3.45% and the five-year benchmark loan rate at 4.2%.

Japan’s Nikkei 225 initially hit a 33-year high but struggled to sustain this peak, eventually dipping by 0.64%. Simultaneously, the Topix index saw a decline of 0.31%. Attention turned to Japan’s forthcoming October inflation figures, set to be unveiled on Friday.

In contrast, Hong Kong’s stock market experienced a setback, led by a plunge in Alibaba’s shares following the e-commerce giant’s announcement of halting the full spinoff of its cloud group. The Hang Seng index managed to rise by 1.7%, while China’s CSI 300 fell by 0.23%.

South Korea’s Kospi saw a rise of approximately 0.75%, while the smaller-cap Kosdaq surged by 1.42%. Meanwhile, Australia’s S&P/ASX 200 index gained 0.13%.

Overall, the major US indices celebrated their third consecutive positive week, with the S&P 500 advancing by 2.2%, the Nasdaq surging approximately 2.4%, and the Dow closing the week with a 1.9% gain. This three-week winning streak marks a notable achievement, particularly for the Dow and S&P 500, breaking their streaks that dated back to July and the Nasdaq since June.

Upcoming Events: 

  • 3:00 PM GMT – USD CB Leading Index m/m
  • 3:30 PM GMT – AUD CB Leading Index m/m
  • 6:45 PM GMT – GBP BOE Gov Bailey Speaks