Amidst the hope that the financial reforms in the country are going to enhance the comparatively slower economy, Chinese stocks moved higher on Wednesday. On a slightly better trading day the Shanghai Composite added 0.7%. Similarly, following the trend in the regional market Hong Kong’s Hang Seng Index rose 0.5% today.
The Shanghai Composite’s better performance is attributed to the fact that the head of China’s central bank assured the market of more financial reforms. It is expected that there will be some measures regarding free deposit rates and a more flexible currency.
The country is also going to allow more foreign institutions to invest in the domestic stock and bond markets.
Following the better trading trends today, Japan pared some of its earlier losses as the yen weakened in Asian trade. Though the U.S. dollar stabilized against the yen (USDJPY +0.40% in Asia, after losing 0.4% Tuesday), it is helping Japanese export to a great extent and that is visible in the stock performance of the Japanese companies.
The recent trend in the USDJPY shows that the Japanese currency has weakened to a great extent but that is not a worrying trend for the national economy of the country. Today, Japanese stocks fared better before the U.S. Thanksgiving holiday Thursday. It is expected that stocks will remain little unchanged due to the holiday in the U.S.
Other Stock Markets
Today’s trading in Australia came with slight fall as S&P/ASX 200 fell -0.45% amidst the news that gold miners are falling after a steep fall in bullion prices. Newcrest Mining fell to a great extent. It is Australia’s largest gold miner; however, as global gold prices are falling apart, it hit its lowest level in a decade, and was last down 4.3%.
On Tuesday trading, there was a slight growth for European stocks as they advanced amidst the data showing that consumer confidence in the U.S. has gone up. Whereas Vivendi SA gained 3.2 percent, Accor (AC) SA could not maintain the momentum and fell the most in seven months. The fall in Accor is attributed to the fact that it will separate the operation and ownership of hotels into two businesses; it did not go well with investors.
Following the trend in the market, the Stoxx Europe 600 Index added 0.3 percent to close at 323.03 at 8:08 a.m. in London. Similarly, whereas Standard & Poor’s 500 Index futures rose less than 0.1 percent on Tuesday, the MSCI Asia Pacific Index lost 0.2 percent.
To contact the reporter of this story: Jonathan millet at email@example.com