Stocks in Asia moved higher early Tuesday, following through on Monday’s rally after U.S. stocks posted gains to start the week.
Japanese stocks rose with the Nikkei index
up about 0.5% in early trading. Auto and financial stocks took the lead, thanks partly to the yen’s weakening and gains in Treasury yields overnight.
is up 2.3%, Dai-ichi Life Holdings
is 1.9% higher, while SoftBank Group
added 2.0%. The U.S. dollar/Japanese yen is at 105.70, up from 105.57 as of Monday’s Tokyo stock market close. Investors are focusing on policy developments from the U.S. and Japan.
Hong Kong’s Hang Seng Index
was ahead 0.8%, in line with gains among broader Asian equities. Tech stocks are among the best performers, with Techtronic Industries
gaining 1.1%, AAC Technologies
up 1.4% and Sunny Optical Technology
adding 1.3%. Pharmaceutical stocks are also higher, with Sino Biopharmaceutical
gaining 1.3% and CSPC Pharmaceutical
up 0.7%. Among other stocks, Swire Pacific
rose 1.7% and Shenzhou International Group
is 1.5% higher.
The Singapore FTSE Straits Times Index
is up 0.5% in early trade, tracking U.S. stocks which rose overnight on positive signs regarding President Trump’s health. Singapore’s economy is also likely to continue its gradual recovery, Commerzbank says. REITs are higher. Mapletree Commercial Trust
gained 1.0%, Ascendas REIT
added 0.6% and CapitaLand Commercial Trust
rose 1.2%. Among consumer stocks, Thai Beverage
was up 0.8%, Wilmar
limbed 0.9% and Dairy Farm International
Malaysia’s stock benchmark Kuala Lumpur Composite Index
is up 0.2%. Gainers include Dialog Group,
which added 1.8% while casinos-to-plantations conglomerate Genting
was 1.6% higher. Malayan Banking
is up 0.7% while CIMB Group
gained 0.3%. Among losers on the index is plantation company Sime Darby Plantation
, which is down 1.4%.
In Asian airline ratings, Qantas Airways
is preferred by Goldman Sachs over Air New Zealand
for its exposure to the Australia-New Zealand aviation market. Goldman upgraded Qantas to buy from neutral while keeping Air New Zealand at sell.
The recovery in Australia’s domestic travel is still in its infancy and Qantas has greater flexibility in its business structure to profitably ride that recovery, Goldman Sachs says. An earnings recovery for Air New Zealand will be limited until international tourism resumes given its pre-Covid international capacity was about six times that of domestic, GS says.
South Korea’s headline inflation accelerated at a faster-than-expected pace to hit a six-month high in September. The benchmark consumer-price index gained 1.0% from a year earlier after rising 0.7% in August, said the statistical office Tuesday. The latest reading — the highest since March’s 1.0% pace — beat the median forecast of five economists polled by the Wall Street Journal for a 0.7% increase. The Bank of Korea expects the country’s inflation to average 0.4% this year–well below its 2% annual target.
South Korea’s stock benchmark Kospi
is up 0.6% in early trade. Technology, retail and banking stocks lead gains including index heavyweight and tech giant Samsung Electronics
, LG Electronics
, food company CJ CheilJedang
, retailer E-mart
, and Hana Financial Group
The story was compiled from Dow Jones Newswires and Associated Press reports.