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Markets Update: APAC stocks traded mostly higher on Monday, led by strength in China's property sector.
Economic Calendar
Global Markets Roundup: 04 Sep 2023
APAC stocks traded mostly higher on Monday, led by strength in China's property sector.
Country Garden Holdings surged by a double-digit percentage after it made a payment on a ringgit-denominated bond and won approval to extend its onshore private bond maturity by three years. Other property developers also saw gains, with Sunac China up 6% and Evergrande up 4%. The gains in the property sector were supported by hopes that the Chinese government will introduce more measures to support the sector. The Shanghai Composite index closed up 1.3%, while the Shenzhen Composite index closed up 1.6%.
ASX 200
The ASX 200 was positive, with the resources sector underpinned after Albemarle sweetened its offer for Liontown Resources. However, further advances in the index were limited by soft data and ahead of tomorrow's RBA meeting.
Nikkei 225
The Nikkei 225 gained as automakers were boosted by higher US sales updates. Japan's government also announced plans to set aside around JPY 20bln to support fishery businesses following China's import ban on Japanese marine products.
Hang Seng and Shanghai Comp The Hang Seng and Shanghai Composite were the biggest gainers amid optimism in the property sector after recent reports of measures to support the industry. Shares in developer Country Garden Holdings surged by a double-digit percentage after it made a payment on a ringgit-denominated bond and won approval to extend its onshore private bond maturity by three years. President Xi had also pledged to widen market access for the service industry and promote cross-border service trade. Overall, Asian markets were positive on Tuesday, with investors encouraged by the recent gains in the property sector in China and the support measures announced by the Japanese government. The risk sentiment remained positive, but markets were cautious ahead of the RBA meeting tomorrow.
European equity futures are indicative of a higher open with the Euro Stoxx 50 futures +0.3% after the cash market closed down 0.3% on Friday.
The gains in European futures are in line with the gains in APAC stocks.
Investors are awaiting the release of the German trade balance and the EZ Sentix index later today.
Forex
The US dollar index (DXY) is contained above the 104 mark.
The euro (EUR) is trading sub 1.08 against the dollar.
The Japanese yen (JPY) and the British pound (GBP) are trading above 146 and 1.26 respectively against the dollar.
Commodities
Crude futures were uneventful but held on to recent gains after climbing to the highest in seven months.
The UAE's Adnoc set the October Murban crude OSP at USD 87.28/bbl, an increase from the September OSP of USD 80.78/bbl.
The agreement between Australia's Offshore Alliance and Legeneering on decommissioning rates for Thevenard offshore decommissioning work scopes is expected to support crude prices.
Spot gold eked marginal gains as the US dollar took a breather following last Friday's advances.
Copper futures were kept afloat amid the property sector optimism in China, the world's largest consumer of the metal.
Highlights
German trade balance
EZ Sentix index
ECB's Lagarde, Elderson, Lane & Panetta
Holiday Closure in the US & Canada for Labor Day
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
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