Asia report: Markets rise amid big IPOs in Tokyo, Hong Kong

23rd Oct 2024 08:53

(Sharecast News) - Asian markets mostly rose on Tuesday, diverging from a lacklustre session on Wall Street.

Gains were led by major market debuts in Japan and Hong Kong, while South Korea also saw a notable uptick.

However, Japan's major indices faced pressure due to losses in key stocks.

"Following the conflicting signals from Wall Street overnight, Asian stock markets are mainly trading higher on Wednesday as traders react to the Biden administration's fresh drive for a Middle Eastern ceasefire," said Patrick Munnelly at TickMill.

"The markets are being weighed down by the recent increase in bond rates and declining hope on the direction of the interest rate.

"CME Group's FedWatch tool shows an 89.6% possibility of a 25 basis point rate decrease next month, based on recent remarks made by US Fed officials implying the central bank intends to progressively lower rates."

Munnelly noted that Japanese markets saw slight declines in volatile trading on Wednesday, continuing their losses from the last two sessions, as a result of the mixed signals from Wall Street overnight.

"The Nikkei 225 is trading below the 38,300 level, with traders remaining cautious ahead of the upcoming general election this weekend.

"China and Hong Kong stocks rose on Wednesday, boosted by the prospect of government support for the economy, despite the uncertainty surrounding the extent and timing of stimulus measures."

Most markets rise as IPOs steal the spotlight

In Japan, the Nikkei 225 slipped 0.8% to close at 38,104.86, while the Topix fell 0.55% to 2,636.96.

Despite the broader market decline, Tokyo Metro's debut was a highlight, with shares surging 45% after its initial public offering.

The public transport operator raised JPY 348.6bn (£1.76bn), marking the largest Japanese IPO in six years, priced at the top of its range.

China's major indices edged higher, with the Shanghai Composite up 0.52% and the Shenzhen Component adding 0.16%.

Gains were driven by industrial stocks like Hangzhou Cable and Jinan High Tech Development, each climbing over 10%.

In Hong Kong, the Hang Seng Index jumped 1.27% to 20,760.15, also bolstered by a strong debut.

China Resources Beverage shares surged around 15% on their first day of trading, after the company raised $650m on its stockmarket premiere.

South Korea's Kospi 100 gained 1.36%, closing at 2,611.97, buoyed by tech and materials stocks, including Posco Future M and NCsoft, both up over 7%.

Australia's S&P/ASX 200 posted a modest 0.13% increase to 8,216.00, with mining and airline stocks such as Ora Banda Mining and Qantas Airways performing well.

Meanwhile, New Zealand's S&P/NZX 50 dropped 0.2% to 12,787.60, pressured by declines in KMD Brands and Auckland International Airport.

In currency markets, the dollar was last up 0.91% on the yen, trading at JPY 152.46, while it added 0.33% against the Aussie to AUD 1.5015, and advanced 0.25% on the Kiwi, changing hands at NZD 1.6588.

Oil prices were weaker, with Brent crude futures last down 0.74% on ICE at $75.48 per barrel, and the NYMEX quote for West Texas Intermediate off 0.77% at $75.48.

Core inflation rises in Singapore, China plans to issue Macau bonds

In economic news, Singapore's core inflation rose by 2.8% in September compared to the same period last year, slightly above expectations.

The increase exceeded the 2.7% forecast by Reuters, and marked a slight rise from August's 2.7%, according to the data from the city-state's Department of Statistics.

Meanwhile, headline inflation grew by 2% year-on-year, also surpassing the anticipated 1.9%, though it continued to slow for a second consecutive month.

In China, the finance ministry announced plans to issue CNY 5bn (£540.25bn) in yuan-denominated bonds to investors in Macau.

The initiative was designed to bolster Macau's financial sector and encourage broader economic diversification.

The bonds were scheduled for issue on 30 October, aligning with the 25th anniversary of Macau's return to China from Portuguese control.

Reporting by Josh White for Sharecast.com.