Hong Kong shares lifted at open by fresh us rate hopes
Hong Kong stock climbed at the open, tracking a record close on Wall Street fuelled by a tech rally, with another batch of soft US jobs data boosting hopes the Federal Reserve will cut interest rates this year.
The Hang Seng Index gained 0.83 percent, or 152.62 points, to 18,577.58.
The Shanghai Composite Index rose 0.13 percent, or 4.04 points, to 3,069.44, while the Shenzhen Composite Index on China’s second exchange added 0.15 percent, or 2.54 points, to 1,708.86 .
Australian stocks rise
Australian shares rose on Thursday, with financials leading the gains in broad-based buying as economic growth data eased fears of further interest rate hikes, while soft US labour market data firmed bets of a September easing.
The S&P/ASX 200 index was up 0.6 percent at 7,812.9, as of by 0029 GMT, touching a nine-session high.
Data showed on Wednesday that Australia’s real gross domestic product (GDP) rose 0.1 percent in the first quarter, just under market forecasts of 0.2 percent, as high borrowing costs and still-elevated inflation put the brakes on consumer spending.
Financial markets have already priced out any risk of a further hike in the Reserve Bank of Australia’s 4.35 percent cash rate, but neither do they see much chance of a cut anytime soon.
Futures are not fully priced for a cut to 4.10 percent until May next year.
Meanwhile, US labour data firmed investor hopes for a Federal Reserve rate cut in September, leading to gains in equities across the globe.
Indian shares open higher
Indian shares opened higher on Thursday, a day after they posted their best one-day jump in over three years as Prime Minister Narendra Modi was set to return for a third term.
The NSE Nifty 50 index was up at 0.5 percent at 22,733, as of 9:17 a.m IST, and the S&P BSE Sensex rose 0.6 percent to 74,774.
The benchmarks had closed over 3 percent higher on Wednesday.
Twelve out 13 major indexes were trading in the green on the day.
Asia shares rally as rate cut bets gather momentum
Asian shares gained on Thursday on rising expectations the US Federal Reserve will likely cut interest rates in September, while the euro advanced ahead of the European Central Bank policy meeting where a rate cut is widely expected.
The shifting Fed expectations lifted oil prices and dragged Treasury yields to their lowest in two months after data this week hinted the US labour market was easing. MSCI’s broadest index of Asia-Pacific shares outside Japan was 1.14 percent higher, led by tech stocks.
The index was on course for a 2.7 percent gain in the week and snap its two-week losing streak.
Japan’s Nikkei rose 1 percent. China stocks also gained, with the blue-chip index up 0.38 percent, while Hong Kong’s Hang Seng index added 0.81 percent.
Indian stocks were poised for a muted start to the session in a turbulent week after Prime Minister Narendra Modi was formally named to lead a new coalition government for a third straight term.
Japan’s Nikkei jumps
Japan’s Nikkei share average rose more than 1 percent on Thursday, as Tokyo Electron and other chip-related stocks tracked their US peers higher.
The Nikkei was up 1.18 percent at 38,944.31, as of 0203 GMT, after briefly crossing the 39,000 level earlier in the session.
“Chip shares lifted the Nikkei, but its gains were capped as investors sold stocks as soon as the index crossed a milestone,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory, referring to the 39,000 level.
Chip-making equipment maker Tokyo Electron jumped 4.68 percent to provide the biggest boost to the Nikkei. Chip-testing equipment maker Advantest jumped 5.22 percent.
US chip stocks leapt 4.5 percent overnight, buoyed by gains to Nvidia and Taiwan Semiconductor Manufacturing.
Nvidia’s market value hit the $3 trillion mark for the first time as the chipmaker overtook Apple to become the world’s second-most valuable company.
“Until the market confirms policy path of central banks in the US, Europe and Japan, it will be hard to make active bets on stocks,” Yasuda said.
Gulf markets end mixed
Stock markets in the Gulf were mixed on Wednesday amid steady oil prices, while soft U.S. labor market data reaffirmed expectations of an interest rate cut by the Federal Reserve in September.
Oil prices, a catalyst for the Gulf’s financial markets, edged up 0.7 percent after hitting near four-month lows in the previous session, with Brent trading at $78.07 a barrel at 1300 GMT.
The Qatari benchmark stock index rose 0.3 percent, gaining for a fifth straight session, supported by a 1.9 percent increase in Industries Qatar and a 0.7 percent rise in Qatar Gas Transport.
Meanwhile, energy giant QatarEnergy signed a deal to supply Taiwan’s state-owned oil firm CPC with liquefied natural gas (LNG) for 27 years.
The Abu Dhabi benchmark index was up 0.3 percent, with Aldar Properties rising 2 percent and conglomerate International Holding Co (IHC) up 1.5 percent to 414.50 dirham per share, its highest level since listing in October 2005. IHC is part of a business empire including climate fund Alterra, overseen by its chair Sheikh Tahnoon bin Zayed al-Nahyan.
Sri Lanka shares end higher
Sri Lankan shares closed higher on Wednesday, led by gains in financials and consumer staples stocks.
The CSE All-Share index settled 0.71 percent higher at 12,189.85.
Ceylon Beverage Holdings Plc and LOLC Holdings Plc were the top gainers on the index, up 23.3 percent and 1.9 percent, respectively.
Trading volume on the index fell to 37.2 million shares from 39.5 million shares in the previous session.
The equity market’s turnover rose to 1.25 billion Sri Lankan rupees ($4.14 million) from 899.9 million rupees in the previous session, according to exchange data.
Foreign investors were net sellers, offloading stocks worth 180.2 million rupees, while domestic investors were net buyers, purchasing shares worth 1.17 billion rupees, the data showed.