When the People’ Bank of China has decided not to give further stimulus, Chinese short-term money market rates are in the spotlight. Due to this the seven-day repo rate opened at 5 percent in early trade and then fell back to around 4.7 to 4.8 percent. Market observer and investors question the decision on the part of the PBOC.
Today Asian equities were mixed; this happened amidst the news that Chinese manufacturing data hit a seven-month high in October, which is quite a good indication, but the national economy is yet to touch the magic figure that it did a couple of years ago. According to market observers upbeat manufacturing data will increase market rates triggered liquidity fears.
Whereas Australia’s S&P ASX 200 fared well and hovered close to the previous day’s five-year high, Japan’s Nikkei and South Korea’s Kospi erased earlier gains to enter positive territory. On the other hand, Indian stocks hit a new three-year high which is quite encouraging news as their economy is in its worst situation in almost two decades.
Nikkei and BSE Doing Better Today
Reports coming from Shanghai and Tokyo indicate that whereas Shanghai is down 0.9 percent, Nikkei is up 0.4 percent. Shanghai benchmark index fell to its lowest level since late September and trading at a 35-point discount to its 200-day simple moving average (SMA) of 2,199 points. On the other hand, Japan’s benchmark index reversed earlier losses in the final hour of trade and bounced off a two-week low.
Earlier yesterday European stock-index futures advanced a bit as investors weighed corporate results. The better trading was also influenced by China’s manufacturing data that showed upbeat manufacturing in September this year. This strengthened more than forecast. U.S. index futures and Asian shares also gained strength.
Some remarkable performances were from Daimler AG, Credit Suisse Group AG, and ABB Ltd. A better performance from ABB Ltd. means it may be active after posting earnings that beat projections. Similarly, Daimler AG may be active after reporting third-quarter earnings which are better than what was expected from it.
Nonetheless, it was Credit Suisse Group AG which gave bright prospects for traders and investors as the company recorded net income that increased by 79 percent. On a better trading day, futures on the Euro Stoxx 50 expiring in December added 0.7 percent to 3,026 at 7:06 a.m. in London.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org