Asian stock markets rebounded on Friday, buoyed by better-than-expected economic growth in China. However, the Asia-Pacific region remained mixed, with significant movements across various indexes. In contrast, U.S. stocks reached new heights, with the Dow Jones Industrial Average closing at a record level.
Asian Market Performance
The Nikkei 225 in Japan rose marginally by 0.11%, the Shanghai Composite surged by 1.99%, and Hong Kong’s Hang Seng index climbed 2.03%. In stark contrast, Australia’s ASX 200 fell by 0.82%.
China’s economy reported a third-quarter GDP growth of 4.6% year-on-year, slightly surpassing economists’ predictions but still declining from the 4.7% growth seen in the previous quarter. This marks the lowest growth rate since mid-2023, continuing the trend away from Beijing’s annual target of 5%.
Retail sales in September grew by 3.2% year-on-year, exceeding expectations, while industrial production accelerated by 5.4%. Despite these positive signs, the Chinese real estate market faces challenges, with house prices falling 5.8% compared to a year earlier, deepening from the 5.3% drop recorded in August. In reaction to these mixed signals, the CSI 300 index in mainland China rose by 2.19%, and Hong Kong’s Hang Seng saw a more than 2% gain amid volatile trading.
Asian Markets Rebound on Strong China Growth
Japan and South Korea
Japan’s economic data showed headline inflation at 2.5% for September, with core CPI, excluding fresh food prices, ticking up to 2.4%, just above expectations. This contributed to a slight increase in the Nikkei 225 by 0.2% and a modest gain in the Topix index. Meanwhile, South Korea’s Kospi index fell by 0.6%, and the smaller Kosdaq index decreased by 1.57%.
U.S. Market Highlights
In the U.S., the Dow Jones Industrial Average set a new record, closing up 161 points (0.37%) at 43,239.05. Strong economic indicators released earlier in the week drove this surge. The S&P 500 experienced a slight dip of 0.02%, finishing at 5,841.47, while the Nasdaq Composite increased by 0.04% to close at 18,373.61. All three major indexes are on track to achieve their sixth consecutive positive week.
Economic Indicators
Recent U.S. economic data included unemployment claims totaling 241,000, aligning with expectations. Core retail sales rose by 0.5%, surpassing the anticipated 0.1%. Retail sales also showed a solid increase of 0.4%, exceeding the forecast of 0.3%.
Commodity Prices
In the commodities market, gold trades at $2,727.35, marking a 0.74% increase, while silver is priced at $32.20, up 1.54%. Brent oil is $74.64 (0.36% increase), and WTI oil is $70.90 (0.42% increase).
Looking Ahead
Investors will be closely watching upcoming economic releases scheduled for 12:30 PM GMT, which include U.S. unemployment claims, core retail sales month-on-month, and overall retail sales month-on-month.
As the markets continue to respond to economic data from Asia and the U.S., analysts remain cautiously optimistic about the region’s future growth prospects.
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