BANGKOK — Asian markets showed positive momentum on Thursday, buoyed by a rise in U.S. stocks following stronger-than-expected earnings reports from major corporations.
Chinese markets experienced gains after the government announced plans to increase financing for housing projects aimed at revitalizing a struggling property sector. The Hang Seng index in Hong Kong rose 0.9% to 20,460.86, while the Shanghai Composite index edged up 0.1% to 3,205.95.
In a key economic update, China is set to release its growth data for the April-September quarter on Friday, with analysts predicting an annual growth rate of approximately 4.5%, which falls short of the government’s target of around 5%.
Chinese leaders have indicated intentions to implement further measures to boost economic activity, although specific details regarding substantial stimulus have been sparse. Analysts suggest that the current measures appear to be more of a gradual recovery plan rather than an immediate “V” shaped rebound in the market.
Reports indicate that unless there is a major shift in housing policies, significant investment in real estate may remain elusive. However, credit injections are seen as an effective strategy to mitigate financial risks and liquidity challenges faced by developers and their supply chains, potentially averting a crisis similar to the U.S. subprime situation.
In Japan, the Nikkei 225 index dipped 0.6% to 38,950.18 after the government released data showing a 1.7% decline in year-over-year exports for September, resulting in an expanded trade deficit.
Overall, other Asian markets experienced mixed results, with South Korea’s Kospi slipping 0.2% to 2,606.23, while Australia’s S&P/ASX 200 saw a gain of 0.6% to 8,337.60. Taiwan’s Taiex increased by 0.3%, whereas India’s Sensex decreased by 0.3%. In Thailand, the SET gained 0.7% following a central bank decision to lower interest rates by 0.25 percentage points to 2.25%.
In the U.S., the S&P 500 rebounded 0.5% to 5,842.47, recovering a portion of the losses from its previous all-time high. The Dow Jones Industrial Average reached a record high, up 0.8% to 43,077.70, while the Nasdaq composite climbed 0.3% to 18,367.08.
Morgan Stanley shares surged 6.4% after reporting better-than-expected profits for the last quarter. CEO Ted Pick noted a positive environment across its global operations, highlighting the firm’s management of increased client assets.
United Airlines’ stock rose by 12.4% after revealing a smaller-than-anticipated decline in summer profits and announcing plans for up to $1.5 billion in share buybacks. J.B. Hunt Transport Services also saw an increase, rising 3.1% after posting strong financial results.
Energy stocks remained stable, with Exxon Mobil gaining 0.3% despite recent declines. The oil market has been responding to easing tensions regarding potential strikes on Iranian facilities, alongside concerns about demand due to China’s economic slowdown.
As of early Wednesday, U.S. benchmark crude oil prices saw a slight increase, trading at $70.60 per barrel, while Brent crude rose to $74.41 per barrel. The U.S. dollar dipped against the Japanese yen and euro, signaling ongoing fluctuations in currency markets.
