The S&P 500 capped an increase of 2.34 points or 0.1 percent and reached a record 1,762.11. The trend was followed by Japan’s Nikkei 225 which went up 1.1 percent at 14,477.57 and Hong Kong’s Hang Seng increased by 0.8 percent to reach 23,037.05.
Yesterday’s gloomy trading day has now been followed by a brighter trading day today as Asian stocks rose to a great extent.
Nonetheless, today’s trading day is on a positive track as the Dow Jones Industrial Average hit an all-time high amidst the expectations the Federal Reserve of the U.S. is all set to keep its economic stimulus fully in place until next year. The Fed had earlier indicated that it would not shun the stimulus if there is no great improvement in employment and other vital indicators.
Like Japan’s Nikkei 225, China’s Shanghai Composite was up 0.8 percent at 2,144.84.
Except for Malaysia and Indonesia, which reversed by midday, almost all indexes in Asia gained to a great extent. Whereas the MSCI Asia Pacific Index advanced 0.5 percent at 2:15 p.m. in Tokyo, Japan’s Topix index climbed 0.7 percent amidst the reports that yen has not yet able to appreciate.
Japan’s industrial production increased by 5.4 percent in September from a year earlier, however, factory output in South Korea contracted 3.6 percent percent last month from a year earlier. The major gainer in today’s trade is China Petroleum & Chemical Corp. which climbed 1.8 percent in Hong Kong after third-quarter net income beat estimates on higher prices.
Another company that attracted attention from investors is Daiwa Securities Group Inc. which jumped 3.2 percent in Tokyo. Earlier the company reported that it has obtained higher profit in the three months than expected.
Reportedly, more than fifty percent of companies in the S&P 500 have reported earnings for the third quarter and many of them have been able to rack in profits and keep investors’ confidence up. Nonetheless, with bright fourth quarter data coming from the estimates and fine observation by analysts, keeps hope alive for the better performance of stocks.
There are some exceptions to the positive growth as the Markit iTraxx Asia index of 40 investment-grade borrowers outside Japan headed for its biggest monthly drop since June 2012. Similarly, there has been drop in the yields on 10-year Japanese government bonds; these have fallen to a great extent that they are the lowest since May this year.
To contact the reporter of this story: Jonathan Millet at email@example.com