On Friday, Asian equities saw an upward trend, with the exception of China, as Wall Street’s recovery led investors to review economic reports from both China and Japan, along with remarks made by Jerome Powell, the Federal Reserve Chair. Retail sales in China for October surpassed forecasts, climbing 4.8% year-over-year, outpacing the anticipated 3.8%. However, both industrial production and investment figures fell short of predictions, showing a growth of 5.3% compared to the expected 5.6%.
The urban unemployment rate dipped to 5%, down from 5.1% in September. The CSI 300 index in mainland China declined by 1.75%, ending at 3,968.83, while Hong Kong’s market saw a slight increase of 0.04% during its final trading hour. Japan’s third-quarter GDP grew by 0.3% year-over-year, breaking a trend of consecutive contractions.
Quarterly, the GDP experienced a 0.2% rise, in line with predictions from a Reuters poll. The Nikkei 225 increased by 0.28%, closing at 38,642.91, and the Topix rose by 0.39% to finish at 2,711.64. The yen showed slight strengthening against the U.S. dollar, settling at 156.19.
Asian markets rise despite mixed economic data
In South Korea, the KOSPI saw a minor decline, finishing at 2,416.86, even as Samsung Electronics shares surged by 7.21% after the company secured an initial wage agreement with its primary labor union. The small-cap Kosdaq index experienced a 0.57% rise, closing at 685.42.
Australia’s S&P/ASX 200 rose by 0.74%, ending at 8,285.2.
In the United States overnight, all three major stock indexes experienced a downturn, with the Dow Jones Industrial Average falling by 0.47%, the S&P 500 decreasing by 0.6%, and the Nasdaq Composite losing 0.64%. On the corporate front, Hyundai Motor announced the appointment of Jose Munoz as its new president and CEO, effective January 1, marking a historic first for a non-Korean leader. Indonesia’s trade figures for October indicated a sharp increase in exports by 10.25% year-on-year, while imports rose by 17.49%.
The trade surplus fell to $2.48 billion from the previous $3.26 billion. Citibank has identified a South Korean firm as a major beneficiary of Nvidia’s latest AI chips, predicting a potential 40% increase in the company’s stock within the next year. Investors continue to remain cautiously optimistic, closely watching economic data and central bank communications.
The mixed reports from China and Japan, coupled with Powell’s remarks, illustrate an economic recovery landscape that is interwoven with various challenges.
