· Asian shares reverse early gains, euro falls to one-week lows
Asian equities pared early gains on Thursday amid growing worries about Sino-U.S. relations while the euro hit a one-week low as traders wagered on central bank action to tame the single currency.
MSCI’s broadest index of Asia-Pacific shares outside of Japan, which was up more than 0.5% earlier in the session, slipped 0.1% with Chinese and Hong Kong shares leading the losses.
· Nikkei hits 30-year high in dollar terms as stimulus hopes spur sentiment
Japan’s Nikkei share average hit a six-month high on Thursday and reached its highest level in three decades in dollar terms, as hopes of more global and domestic economic stimulus boosted sentiment.
Nikkei rose 0.94% to 23,465.53, its highest close since Feb. 21. Converted to dollars, that put the index at its highest since 1990.
“Coronavirus infections are slowing in many parts of the world as various social distancing and hygienic measures have been taken. So clearly, we can say the economy is improving after a brief lull in August,” said Nobuhiko Kuramochi, market strategist at Mizuho Securities.
“The Japanese government is likely to extend support for employment and the U.S. yield curve is not pricing in any hike until 2024, prompting investors to buy risk assets,” he added.
The broader Topix rose 0.48% to 1,631.24, a six-month high.
· China stocks end lower as high-flying consumer shares retreat
China stocks ended lower on Thursday, as investors pulled out of high-flying consumer firms on worries over lofty valuations, while Sino-U.S. tensions also dented sentiment, outweighing optimism stemming from upbeat services sector data.
The blue-chip CSI300 index fell 0.6%, to 4,817.10, while the Shanghai Composite Index eased 0.6%to 3,384.98.
· European markets rise with economic data in focus; Melrose up 8.8%
European markets advanced Thursday morning as investors monitored key economic data from around the world.
The pan-European Stoxx 600 added 0.9% at the start of trading, with travel and leisure stocks jumping 1.7% to lead gains as almost all sectors and major bourses entered positive territory.
In terms of individual share price action, Melrose Industries gained 8.8% in early trade after reporting stronger-than-expected trading over the summer months and projecting a recovery in the aviation and automotive sectors, despite profit falling sharply for the first half.
Reference: CNBC, Reuters
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