Asia Markets: Autos, financials and tech stocks help propel Asia markets to second day of gains

Asia Markets: Autos, financials and tech stocks help propel Asia markets to second day of gains

6 Oct    Finance News

Stocks in Asia moved higher early Tuesday, following through on Monday’s rally after U.S. stocks posted gains to start the week.

Japanese stocks rose with the Nikkei index NIK, +0.40%   up about 0.5% in early trading. Auto and financial stocks took the lead, thanks partly to the yen’s weakening and gains in Treasury yields overnight.

Honda Motor 7267, +2.55%   is up 2.3%, Dai-ichi Life Holdings 8750, +2.14%   is 1.9% higher, while SoftBank Group 9984, +1.98%   added 2.0%. The U.S. dollar/Japanese yen is at 105.70, up from 105.57 as of Monday’s Tokyo stock market close. Investors are focusing on policy developments from the U.S. and Japan.

Hong Kong’s Hang Seng Index HSI, +0.67%   was ahead 0.8%, in line with gains among broader Asian equities. Tech stocks are among the best performers, with Techtronic Industries 669, +0.77%   gaining 1.1%, AAC Technologies 2018, +5.52%   up 1.4% and Sunny Optical Technology 2382, +3.81%   adding 1.3%. Pharmaceutical stocks are also higher, with Sino Biopharmaceutical 1177, +3.36%   gaining 1.3% and CSPC Pharmaceutical 1093, +2.53%   up 0.7%. Among other stocks, Swire Pacific 19, +2.27%   rose 1.7% and Shenzhou International Group 2313, +0.44%   is 1.5% higher.

The Singapore FTSE Straits Times Index STI, +0.77%   is up 0.5% in early trade, tracking U.S. stocks which rose overnight on positive signs regarding President Trump’s health. Singapore’s economy is also likely to continue its gradual recovery, Commerzbank says. REITs are higher. Mapletree Commercial Trust M44U,   gained 1.0%, Ascendas REIT CY6U,   added 0.6% and CapitaLand Commercial Trust C31, +0.36%   rose 1.2%. Among consumer stocks, Thai Beverage Y92, -0.84%   was up 0.8%, Wilmar F34, +1.33%  limbed 0.9% and Dairy Farm International D01,   rose 0.4%.

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Malaysia’s stock benchmark Kuala Lumpur Composite Index FBMKLCI, +0.33%   is up 0.2%. Gainers include Dialog Group, 7277, -0.26%   which added 1.8% while casinos-to-plantations conglomerate Genting 2291, +0.51%   was 1.6% higher. Malayan Banking 1155, +1.26%   is up 0.7% while CIMB Group 1023, +0.65%   gained 0.3%. Among losers on the index is plantation company Sime Darby Plantation 5285,  , which is down 1.4%.

In Asian airline ratings, Qantas Airways QAN, +1.39%   is preferred by Goldman Sachs over Air New Zealand AIR, +3.65%   for its exposure to the Australia-New Zealand aviation market. Goldman upgraded Qantas to buy from neutral while keeping Air New Zealand at sell.

The recovery in Australia’s domestic travel is still in its infancy and Qantas has greater flexibility in its business structure to profitably ride that recovery, Goldman Sachs says. An earnings recovery for Air New Zealand will be limited until international tourism resumes given its pre-Covid international capacity was about six times that of domestic, GS says.

South Korea’s headline inflation accelerated at a faster-than-expected pace to hit a six-month high in September. The benchmark consumer-price index gained 1.0% from a year earlier after rising 0.7% in August, said the statistical office Tuesday. The latest reading — the highest since March’s 1.0% pace — beat the median forecast of five economists polled by the Wall Street Journal for a 0.7% increase. The Bank of Korea expects the country’s inflation to average 0.4% this year–well below its 2% annual target.

South Korea’s stock benchmark Kospi 180721, +0.17%   is up 0.6% in early trade. Technology, retail and banking stocks lead gains including index heavyweight and tech giant Samsung Electronics 005930, +0.17%  , LG Electronics 066570, +1.52%  , food company CJ CheilJedang 097950, +2.76%  , retailer E-mart 139480, +0.69%  , and Hana Financial Group 086790, -0.51%  .

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The story was compiled from Dow Jones Newswires and Associated Press reports.

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