Asian stock markets showed a generally positive trend on Thursday, following a rise in U.S. stocks propelled by strong earnings reports from major companies such as Morgan Stanley and United Airlines.
In contrast, Chinese markets experienced declines after Beijing announced an expansion of financing for housing projects, a move aimed at addressing the ongoing slump in the property sector. This downturn has been exacerbated by a government crackdown on excessive borrowing by property developers.
The Hang Seng index in Hong Kong fell 1% to close at 20,082.63, while the Shanghai Composite index dropped 1.1% to finish at 3,169.38. China is set to release its economic growth data for the third quarter on Friday, with economists predicting an annual growth rate of approximately 4.5%, which falls short of the government’s target of around 5%.
Chinese leadership has indicated intentions to implement additional measures to stimulate the economy; however, the specifics of these stimulus plans have yet to materialize, leaving investors concerned. Analysts at ANZ Research noted that the current plans appear to be more of a “bailout” intended to foster a gradual recovery rather than a quick “V” shaped rebound in prices.
“Without announcing a major shift in housing policy, these measures are unlikely to generate significant investment demand in real estate,” the report stated. Nonetheless, it acknowledged that “the package of credit injections is an effective measure to mitigate financial risks and alleviate the liquidity crunch faced by developers and their supply chains, helping to avert a subprime crisis in China.”
In Tokyo, the Nikkei 225 index declined 0.7% to 38,911.19, following the release of data indicating a 1.7% drop in Japan’s exports year-on-year for September, widening the nation’s trade deficit.
In South Korea, the Kospi edged down by less than 0.1% to 2,609.30. Conversely, Australia’s S&P/ASX 200 gained 0.9% to close at 8,355.90. Other regional markets also showed mixed results, with Taiwan’s Taiex rising 0.2%, while India’s Sensex fell 0.5%. Thailand’s SET index climbed 0.6% following a decision by the central bank to cut its key interest rate by a quarter percentage point to 2.25%.
On Wednesday, the S&P 500 in the U.S. rose by 0.5% to 5,842.47, recovering a significant portion of its recent losses. The Dow Jones Industrial Average set a record high, climbing 0.8% to 43,077.70, while the Nasdaq composite added 0.3% to reach 18,367.08.
Morgan Stanley’s shares surged 6.4% after the bank reported quarterly profits that exceeded analysts’ expectations. CEO Ted Pick noted that the investment bank thrived in a “constructive environment” globally, managing increased funds for clients as stock prices remain near record levels.
Meanwhile, United Airlines saw a significant increase in its stock price, up 12.4%, after reporting a smaller-than-expected decline in summer profits and announcing plans to return up to $1.5 billion to shareholders through stock buybacks. J.B. Hunt Transport Services also saw a 3.1% rise following better-than-expected financial results.
Energy stocks remained relatively stable, with Exxon Mobil gaining 0.3% after experiencing significant losses the previous day. These fluctuations have been influenced by oil prices, which have been declining due to reduced concerns over potential Israeli attacks on Iranian oil facilities in retaliation for recent missile strikes. Iran, a key crude oil producer, is critical to global oil exports, and any disruption could significantly impact markets.
As of early Wednesday, U.S. benchmark crude oil traded at $70.25 per barrel, down 14 cents in electronic trading on the New York Mercantile Exchange. Brent crude, the international benchmark, fell 15 cents to $74.07 per barrel.
The dollar strengthened slightly, rising to 149.78 Japanese yen from 149.64 yen, while the euro dipped to $1.0859 from $1.0862.
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