Wednesday 2nd October 2024: Asian Markets Surge on Beijing Stimulus Amid Global Geopolitical Tensions

Asian Markets Surge on Beijing Stimulus Amid Global Geopolitical Tensions

Global Markets:

•  Asian Stock Markets : Nikkei down 2.17%, Shanghai Composite up 8.06%, Hang Seng up 5.85% ASX down 0.25%
• Commodities : Gold at $2676.35 (-0.44%), Silver at $31.50 (-0.74%), Brent Oil at $74.91 (1.96%), WTI Oil at $71.36 (2.17%)
• Rates : US 10-year yield at 3.732, UK 10-year yield at 3.943, Germany 10-year yield at 2.043

News & Data:

• (USD) ISM Manufacturing PMI  47.2 vs 47.6 expected
• (USD) JOLTS Job Openings  8.04M vs 7.64M expected

Markets Update:

Hong Kong’s Hang Seng index surged over 6% on Wednesday, reflecting growing optimism around Beijing’s recent stimulus policies. Leading the charge were property developers, with China Vanke, Logan Group, and Longfor Group rising 40%, 32%, and 23%, respectively. Chinese tech giants also saw gains, with Baidu and JD.com up over 10%, and Alibaba, Tencent, and Xiaomi gaining more than 5%.

Meanwhile, mainland China markets remained closed for the Golden Week holiday. On Monday, China’s stocks experienced their best day in 16 years following Beijing’s stimulus measures, including interest-rate cuts, reduced bank reserve requirements, and enhanced liquidity.

In other Asia-Pacific markets, results were mixed on Wednesday. Australia’s S&P/ASX 200 traded flat, while South Korea’s Kospi slipped 0.2% and Japan’s Nikkei 225 dropped 2.2%. Japan’s new Prime Minister, Shigeru Ishiba, assumed office, sparking discussions on potential interest rate hikes by the Bank of Japan. Economy Minister Ryosei Akazawa, however, emphasized a cautious approach to future rate increases.

In the U.S., the Dow Jones Industrial Average fell over 173 points, with the S&P 500 and Nasdaq Composite also dipping. Oil prices spiked after Iran launched missiles at Israel, escalating tensions following Israel’s ground operations in Lebanon. Israeli Prime Minister Netanyahu promised retaliation, further heightening geopolitical risks. 

As investors eye Friday’s U.S. jobs report, concerns about rising unemployment and the impact of Middle East tensions are contributing to market uncertainty.

Upcoming Events: 

• 12:15 PM GMT – USD ADP Non-Farm Employment Change

The post Wednesday 2nd October 2024: Asian Markets Surge on Beijing Stimulus Amid Global Geopolitical Tensions first appeared on IC Markets | Official Blog.