Global Markets:
- Asian Stock Markets : Nikkei up 2.17%, Shanghai Composite up 8.06%, Hang Seng down 1.25% ASX down 0.05%
- Commodities : Gold at $2672.35 (-0.14%), Silver at $31.80 (-0.24%), Brent Oil at $74.91 (1.36%), WTI Oil at $71.36 (1.47%)
- Rates : US 10-year yield at 3.793, UK 10-year yield at 4.029, Germany 10-year yield at 2.102
News & Data:
- (USD) ADP Non-Farm Employment Change 143K vs 124K expected
Markets Update:
Hong Kong stocks plunged on Thursday as the China stimulus rally lost momentum. The Hang Seng Index dropped 3%, reversing gains from the previous session when it surged over 6%, marking a 22-month high. The Hang Seng Mainland Properties Index tumbled more than 10%, with Longfor Group Holdings and New World Development seeing significant losses of 12.8% and 10%, respectively. The Hang Seng Tech Index also fell over 6%.
Mainland Chinese markets remain closed until October 8, following a strong rally driven by government support measures. However, there are concerns about the scale and timing of further fiscal policies from Beijing. Ting Lu, chief China economist at Nomura, cautioned that the eventual impact of these measures could be uncertain, advising a more cautious market outlook.
While Hong Kong struggled, most Asian markets traded higher. Japan’s Nikkei 225 rose 2.1%, and the Topix added 1.3%, supported by a weakening yen. Japan’s new prime minister, Shigeru Ishiba, indicated no immediate rate hike following discussions with the Bank of Japan.
Meanwhile, Australia’s S&P/ASX 200 gained 0.25% despite a dip in PMI data and a lower-than-expected trade surplus for August. Japan’s composite PMI showed a softer expansion at 52.0.
Other factors influencing markets include Middle East tensions, with Israel escalating military operations in Lebanon and Iran launching missile attacks in retaliation. U.S. markets remained flat, with the S&P 500 rising just 0.01%, and the Dow Jones and Nasdaq also showing minimal gains.
Upcoming Events:
- 12:30 PM GMT – USD Unemployment Claims
- 02:00 PM GMT – USD ISM Services PMI
