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How Did Asian Markets Perform on October 26?

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Updated

Economic calendar

8:30 AM EST – US goods trade balance (September)

8:30 AM EST – US initial jobless claims

10:00 AM EST – US pending home sales (September)

10:30 AM EST – FOMC member Kashkari speaks

7:30 PM EST – Japan’s Tokyo core consumer price index (October)

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China

Following a brief pullback last week, China’s Shanghai Composite Index started this week on a mixed note. However, the market moved higher as the week progressed and gained in the first three trading days of the week. On Thursday, the Shanghai Composite Index rose to the highest daily close in 22 months.

Market sentiment

The market sentiment was weak last week amid the release of China’s weaker-than-expected 3Q17 economic data. However, the market regained strength this week amid increased optimism about China’s economic outlook. The sentiment improved after the government revealed the Politburo Standing Committee’s leadership, which is headed by President Xi Jinping. On Thursday, the market was driven by improved sentiment and strength in the life insurance and retailers sectors.

On October 26, the Shanghai Composite Index closed at 3,408.24 after rising 0.33%. The SPDR S&P China ETF (GXC) fell 0.38% on October 25, 2017.

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Hong Kong

After pulling back last week and closing flat, Hong Kong’s Hang Seng Index started this week on a weaker note and fell in the first two trading days. The Hang Seng Index rebounded on Wednesday as Wall Street indices rose to record highs but lost strength on Thursday. The fall in Wall Street indices overnight on October 25 along with profit-booking in the Hang Seng Index weighed on Hong Kong’s markets on October 26. The Hang Seng Index closed at 28,232.00—a fall of 0.25%. On October 25, 2017, the iShares MSCI Hong Kong Index (EWH) fell 0.44%.

Japan

After breaking the 16-day gaining streak on Wednesday, the Nikkei Index regained strength on October 26. The market opened the day on a mixed note amid the pullback in Wall Street. However, the market regained strength as the day progressed due to the release of strong corporate earnings reports. On October 26, the Nikkei Index closed the day at 21,755.00 with a gain of 0.22%. The iShares MSCI Japan (EWJ) fell 0.81% on October 25.

In the next part of this series, we’ll see how European markets performed in the morning session on October 26, 2017.

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