· Asian shares slip as surging coronavirus cases weigh on global economy
Asian stocks fell on Tuesday as investors were unnerved by the soaring global coronavirus cases that dampened the recovery outlook and slow progress on a U.S. stimulus deal.
U.S. shares however were set to bounce back from Wall Street’s worst day in a month with E-mini futures for the S&P 500 up 0.23%. London’s FTSE futures edged up 0.02%.
MSCI’s gauge of Asia Pacific stocks outside Japan was down 0.43%, while Australia’s ASX 200 closed down 1.7%, in its worst session in a month.
· HSBC beats estimates, reports 36% year-on-year fall in pre-tax profit for the third quarter
HSBC, Europe’s largest bank by assets, on Tuesday reported a 36% year-on-year fall in third-quarter pre-tax profit to $3.1 billion in the third quarter as it attempts to recover from the economic shock of the coronavirus pandemic.
· Nikkei closes little changed as upbeat earnings offset coronavirus woes
Japanese shares ended nearly flat on Tuesday, as strong earnings from camera and copy machine maker Canon helped counter weakness in travel and real estate stocks following a lower finish on Wall Street.
After dropping as much as 1.1% in early trade, the Nikkei share average was nearly flat at 23,485.80 while the broader Topix lost 0.09% to 1,617.53.
The market got support from upbeat earnings reports, with Canon jumping over 8% after raising its annual earnings outlook and legal portal service operator Bengo4.com reversing course to rise 7.5% on upbeat quarterly results.
Overall sentiment, however, was weaker as growing worries over a second wave of infections in the United States and Europe pressured Wall Street overnight.
· Healthcare, materials nudge China shares higher
Shanghai shares closed up in a subdued session on Tuesday as gains in materials and healthcare firms nudged the benchmark index higher, but slower profit growth at industrial firms in September underscored continuing challenges to China’s recovery.
Profits at China’s industrial firms rose 10.1% in September year-on-year, a fifth straight monthly rise, but growth slowed from August, data from the National Bureau of Statistics showed on Tuesday, as factory-gate deflation and rising raw materials costs undercut a recovery in the manufacturing sector.
China’s economic growth is expected to hit a 44-year low in 2020 as the country recovers from a coronavirus-induced slump, a Reuters poll showed on Tuesday.
At the close, the Shanghai Composite index was up 0.1% at 3,254.32. The blue-chip CSI300 index was up 0.17%, with the consumer staples sector up 0.33%, the real estate index down 1.67% and the healthcare sub-index up 2.76%.
· European markets mixed after sell-off, with virus surge in focus
European stocks were mixed Tuesday morning following from the previous session’s sell-off, as investors continue to monitor the rapid spread of coronavirus across the continent.
The pan-European Stoxx 600 edged 0.15% above the flatline in early trade, with banks jumping 1.7% after strong earnings while basic resources fell 0.9%.
The European blue chip index plunged 1.8% on Monday as soaring global coronavirus cases, including in major European countries, and further delays to a potential U.S. stimulus bill hammered sentiment.
Reference: CNBC, Reuters
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