Tuesday 8th October: Asian markets gain amid trade talk hopes

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Global Markets:

  • Asian Stock Markets : Nikkei up 1.01%, Shanghai Composite up 0.46%, Hang Seng up 0.71%, ASX up 0.45%
  • Commodities: Gold at $1495.45 (-0.59%), Silver at $17.44 (-0.58%), Brent Oil at $58.84 (+0.84%), WTI Oil at $53.23 (+0.91%)
  • Rates : US 10-year yield at 1.582, UK 10-year yield at 0.447, Germany 10-year yield at -0.548

News & Data:

  • (CNY) Caixin Services PMI 51.3 vs 52.1 expected
  • (AUD) ANZ Job Advertisements m/m 0.30% vs -2.60% previous
  • (AUD) NAB Business Confidence 0 vs 1 previous
  • (JPY) Current Account 1.72T vs 1.68T expected
  • (JPY) Household Spending y/y 1.00% vs 0.90% expected
  • (JPY) Average Cash Earnings y/y -0.20% vs -0.20% expected
  • (USD) Consumer Credit m/m 17.9B vs 14.9B expected
  • (GBP) BRC Retail Sales Monitor y/y -1.70% vs -0.80% expected
  • (EUR) Sentix Investor Confidence -16.8 vs -12.9 expected
  • (GBP) Halifax HPI m/m -0.40% vs 0.40% expected
  • (CHF) Foreign Currency Reserves 777B vs 767B previous
  • (EUR) German Factory Orders m/m -0.60% vs -0.40% expected
  • (JPY) Leading Indicators 91.70% vs 91.80% expected
  • (JPY) Economy Watchers Sentiment 46.7 vs 43.4 expected
  • (CHF) Unemployment Rate 2.30% vs 2.10% expected

Markets Update:

Asian shares inched up on Tuesday, with Chinese shares making modest gains after a week-long holiday, though investors remained cautious over U.S.-China trade talks after President Donald Trump said a quick trade deal was unlikely.

On Wall Street, the market extended its losing streak into a fourth week on Monday. S&P 500 lost 0.45% on Monday, unable to sustain gains made after positive tweets and news headlines about the trade talks.

Japan’s Nikkei climbed 1.01% while MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.73%, led by gains in tech shares in South Korea and Taiwan. Hong Kong shares extended gains after the territory’s leader said she had no plans to use the emergency regulation ordinance to introduce other laws.

Shanghai shares rose 0.3% after the week-long break though gains were led mainly by defensive shares ahead of the crucial trade talks. Down under, ASX is trading 0.45% in green.

U.S. debt yields jumped back as $78 billion in note and bond supply slated for auction this week helped push prices lower after last week’s dramatic rise. The 10-year U.S. Treasuries yield last stood at 1.582%. Major currencies were more range-bound. The dollar traded at 107.40 yen, up 0.15% after having found some support around 106.50 yen in the past few sessions.

Oil prices rose on Tuesday, as unrest in oil-producing countries Iraq and Ecuador raised concerns of supply disruption. Brent crude futures rose 0.84% to $58.84 a barrel while U.S. West Texas Intermediate (WTI) crude gained 0.91% to $53.23 per barrel. Prices of the safe-haven gold rose on Tuesday in Asia amid lowered rate cut expectations.

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