· Asian stocks find footing but prevailing jitters keep dollar firm
Asian shares managed to claw back some of this week’s heavy losses on Thursday but were headed for their worst quarter since the pandemic hit, while the dollar held near a one-year high, helped by broad safe-haven demand and U.S. rate hike prospects.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.33%, but was still set for a 4.4% monthly decline and a 9.3% loss on the quarter.
· Hong Kong stocks fall nearly 1% as official data shows China factory activity unexpectedly contracting
Shares in Asia-Pacific traded mixed on Thursday, as investors reacted to the release of Chinese factory activity data for September.
Mainland Chinese stocks advanced, with the Shanghai composite up 0.37% while the Shenzhen component jumped 1.422%. Hong Kong’s Hang Seng index, on the other hand, fell 0.86%.
China’s official manufacturing Purchasing Managers’ Index for September came in at 49.6, below expectations for a reading of 50.1 by analysts in a Reuters poll.
PMI reading below 50 represent contraction while those above that level signify expansion. PMI readings are sequential and represent month-on-month expansion or contraction.
Meanwhile, a private survey on Chinese factory activity in September came in above expectations, with the Caixin/Markit manufacturing PMI for the month rising to 50 for the month as compared with August’s reading 49.2.
The September factory activity readings come as China continues grappling with a power crunch.
Hong Kong-listed shares of developer China Evergrande fell more than 4% by Thursday afternoon in the city as Reuters reported that some bondholders did not receive a due coupon payment by the close of Asia business hours on Wednesday.
· China Evergrande shares swing as bondholders await word on payments
· Japan's Nikkei extends falls, but marks best month in 10
Japan’s Nikkei share average wrapped up on Thursday its best month since November 2020 even as markets fell for a fourth straight session on concerns over China’s economic growth due to a worsening power crunch.
The Nikkei slipped 0.31% to 29,452.66 but posted a monthly gain of 4.85%. The broader Topix lost 0.4% to 2,030.16 but closed out September with a monthly rise of 3.54%, its biggest since March.
· European stocks rise, brushing off market jitters elsewhere
European stocks were higher on Thursday, unperturbed by declines in Asia-Pacific overnight and U.S. markets on Wednesday.
The pan-European Stoxx 600 climbed 0.8% in early trade, with tech stocks adding 1.5% to lead gains as all sectors and major bourses entered positive territory.
The solid start for European markets comes amid declines elsewhere; overnight in Asia-Pacific, shares traded mixed as investors reacted to the release of Chinese factory activity data for September.
· Dow futures jump more than 200 points after rising rates hit tech stocks on Wall Street
U.S. stock index futures jumped during early morning trading on Thursday, after tech stocks dipped again on Wednesday as investors digest the impact from higher rates.
Futures contracts tied to the Dow Jones Industrial Average gained 245 points. S&P 500 futures and Nasdaq 100 futures both also traded in positive territory.
The S&P 500 and the Dow Jones Industrial Average rose slightly on Wednesday, but the technology sector struggled again as the 10-year Treasury yield traded volatilely.
The Dow rose 90.73 points, or 0.26%, to 34,390.72, and the S&P 500 added 0.16% to close at 4,359.46. The tech-heavy Nasdaq Composite was the laggard, falling 0.24% to finish at 14,512.44. The moves came after the Nasdaq posted its worst day since March on Tuesday amid a spike in bond yields.
The 10-year Treasury yield eased on Wednesday morning to trade below 1.5% but bounced back toward 1.54% in afternoon trading. The benchmark yield rose as high as 1.56%.
Reference: Reuters, CNBC
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