Asian stocks started with a poor performance today; however, Japanese stocks stood against the wave and fared better. This is happening amidst the news that there is strong U.S. economic growth and hiring that is reinforcing expectations that the Federal Reserve will start cutting back stimulus soon.
Whereas China’s Shanghai Composite was down 0.2 percent to 2,102.79, Seoul’s Kospi dropped 0.3 percent to 1,979.55. The trend was followed by Australia’s S&P/ASX 200 which declined by 0.5 percent to 5,376.30. However, Japan’s Nikkei 225 cut short the losses and grew by 1 percent to 14,256.80. Whereas New Zealand’s NZX 50 Index slipped 0.6 percent, there was no respite for the other indexes in the regional market.
After devastating typhoon in Philippines, the stocks in Manila sank to a great extent. However, the major development has been that whereas investors were waiting to see China’s communist leaders, there is a likelihood that they will come up with reform plans to bolster the Chinese economy which is not in so good health today.
Major Losers and Gainers
In today’s trading, a major loser is Robinsons Retail Holdings Inc. The company that operates supermarkets and department stores controlled by billionaire John Gokongwei declined to a great extent. It fared the worst and slumped 5.4 percent on its trading debut following the largest Philippine IPO.
Similarly, Nexon Co. that makes online games was among the losses wherein it plunged 22 percent in Tokyo. The company had earlier announced that its net-income forecast missed estimates. On the other hand, Honda Motor Co., a Japanese carmaker gained 1.7 percent amidst the news that the U.S. economy is faring better.
Whereas the Asia-Pacific gauge climbed the past two months, Japan’s Topix index rallied 0.6 percent. Japan gained strength after its national currency fell 1 percent versus the dollar on the last week. Asia-Pacific gauge climbed and pushed valuations on the measure to 13.5 times estimated earnings as of Nov. 8 which is up from a multiple of 12.7 at the end of August.
A similar trend was followed by the Philippine Stock Exchange PSEi Index (PCOMP) which slumped 1.8 percent. The PCOMP has been on losing streak for long and heading for the biggest loss since Sept. 30. Similarly, Australia’s S&P/ASX 200 Index fell 0.4 percent amidst the news that data show that the nation’s home-loan approvals grew in September to a great extent.
To contact the reporter of this story: Jonathan Millet at email@example.com