Source – invezz.com
Asian stocks rose on Friday, with significant gains in Hong Kong and other Chinese markets, buoyed by China’s recent economic support measures. The Hang Seng index in Hong Kong led the charge, surging 3.7% to 20,659.03, while the Shanghai Composite index jumped 2.1% to 3,065.29. These gains came as China’s central bank implemented a reserve requirement cut for banks, part of a broader set of measures aimed at supporting the property industry and financial markets.
The boost in the market was a direct response to China’s attempts to stimulate its economy, which has been facing challenges from a sluggish property sector and weakening industrial performance. Investors reacted positively to the central bank’s moves, as these efforts signal the government’s commitment to reviving economic growth.
In addition, the Shanghai Stock Exchange experienced technical issues early Friday, causing delays in order processing. This disruption led to an unexpected 6.4% surge in the Shenzhen index, as investors shifted their focus to that market during the glitch. Trading returned to normal by noon, with the Shanghai Stock Exchange later stating that they were investigating the cause of the disruption.
Industrial Profits Fall While Property Giant Soars
Despite the Chinese market rally, China’s economy still faces significant challenges. The government reported that industrial profits in August fell by nearly 18% year-on-year, a clear sign of the ongoing struggles in the world’s second-largest economy. This decline underscores the pressure on China’s manufacturing and industrial sectors, even as financial markets respond positively to government stimulus measures.
One of the day’s biggest stock movers was New World Development, a major property conglomerate based in Hong Kong. Its shares skyrocketed by 21.5% after a leadership change, with Adrian Cheng, the company’s third-generation leader, being replaced. This reshuffling came after the firm posted its first annual loss in almost 20 years, amounting to over $2.4 billion. The market welcomed the news, driving a significant surge in the company’s stock price.
Chinese Markets and Other Asia’s Markets Show Mixed Results
Elsewhere in Asia, Japan’s Nikkei 225 index rose by 1.4%, closing at 39,451.25. This increase followed the election of new leadership in Japan’s ruling Liberal Democratic Party, though no significant policy changes are expected. The Nikkei also benefited from data showing that Tokyo’s consumer inflation slowed to 2.2% in September, matching market expectations. This easing of inflation is seen as a positive sign for the Japanese economy.
In contrast, South Korea’s Kospi index shed 0.2%, closing at 2,666.01, while Australia’s S&P/ASX 200 edged slightly higher by 0.1%, finishing at 8,208.70. These mixed results across the region reflect varying economic conditions and market responses to global developments.
U.S. Markets Hit Record Highs
Meanwhile, in the U.S., the S&P 500 closed 0.4% higher on Thursday, reaching a new all-time high of 5,745.37. This marked the index’s 42nd record close of the year. The Dow Jones Industrial Average also gained 0.6%, ending at 42,175.11, while the Nasdaq composite rose by 0.6% to 18,190.29. Micron Technology led the way, jumping 14.7% after reporting stronger-than-expected quarterly profits, largely driven by sales related to artificial intelligence (AI) technologies.
Electronics manufacturer Jabil also saw its stock climb 11.7% after announcing better-than-expected profits and revenue, along with a $1 billion stock buyback plan. However, not all tech companies fared well—Super Micro Computer fell 12.2% after news broke that the U.S. Department of Justice is investigating the company. This comes after the firm’s stock had more than tripled last year amid the AI boom.
As markets in Asia continue to react to both domestic developments and global trends, investors remain focused on the broader economic outlook and potential policy shifts in key economies like China and Japan.
