Asian Markets Are Strong on November 9 amid Improved Sentiment
8:00 AM EST – U.K. NIESR GDP estimate
8:30 AM EST – US initial jobless claims
1:00 PM EST – German Bundesbank President Weidmann speaks
1:20 PM EST – European Central Bank Lautenschlaeger speaks
11:30 PM EST – Japan Tertiary Industry Activity Index
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Despite a pullback last week, China’s Shanghai Composite Index started this week on a stronger note and rose to the highest levels traded since January 2016. The Shanghai Composite Index rose in the first three trading days of the week and opened with a strong sentiment on Thursday.
The pullback in China’s markets last week was due to doubts about overgrowth in China’s economy in the third quarter. China’s stronger-than-expected CPI (consumer price index) and producer price index data released on Wednesday after the market closed improved the market sentiment overnight in China. According to the National Bureau of Statistics of China, China’s CPI rose 1.9% in October, which is better than the forecast of 1.8% growth. October’s strong inflation data eased economic slowdown concerns and improved the market sentiment.
On November 9, the Shanghai Composite Index rose 0.36% and closed the day at 3,427.79. The SPDR S&P China (GXC) rose 0.11% on November 8.
After a brief pullback on Wednesday, Hong Kong’s Hang Seng Index regained strength on Thursday and rallied to ten-year high price levels. The strength in US markets along with the improved market sentiment in China made the Hang Seng Index open higher on Thursday. The Hang Seng Index rose 0.84% and closed the day at 29,150.00. The iShares MSCI Hong Kong Index (EWH) rose 0.92%.
Following a rally for eight consecutive trading weeks, Japan’s Nikkei Index started this week on a stable note. It regained strength as the week progressed and rose to record high price levels. The Nikkei Index opened Thursday on a stronger note and traded above the 23,000 price level, which is a 26-year intraday high. The market pulled back amid profit-booking at elevated levels. Nikkei closed the day at 22,868.71 with a loss of 0.2%. The iShares MSCI Japan (EWJ) rose 0.62% on Wednesday.
In the next part, we’ll discuss how European markets performed in the early hours on November 9.