Asia report: Most markets rise on back of Wall Street gains

Asia-Pacific markets put in a mixed but mostly higher performance on Thursday, following Wall Street’s broad-based rally ahead of Thanksgiving stateside.

Japan’s traders were also enjoying the day off for the country’s Labor Thanksgiving Day holiday.

“Investors have reasons to be thankful this week with rising stocks, cooling inflation, declining Treasury yields, and a positive resolution to the OpenAI turmoil with Sam Altman returning as CEO,” said SPI Asset Management managing partner Stephen Innes.

“The cheery feeling is also tied to historical patterns, as US stocks typically experience gains over the Wednesday and Friday sessions surrounding Thanksgiving, according to data from Dow Jones going back to 1950.

“This historical trend contributes to the overall Pollyannaish mood among investors during the Thanksgiving week.”

Innes added that the American consumer remained resilient, consistently contributing to economic growth even during challenging times.

“Despite sentiment levels being below pre-pandemic levels and resembling those observed after the 2008 financial crisis, consumer spending continues to grow.

“This steadfastness is a source of market optimism and adds to investors’ giddy mood.

“But Black Friday is facing a looming shadow; at minimum, it could test the spendthrift US consumer thesis.”

Most bourses close with small gains

In China, the Shanghai Composite rose by 0.6% to 3,061.86, while the Shenzhen Component gained 0.78% to 9,933.02.

Leading the gains in Shanghai were Beijing Dalong Weiye Real Estate Development, Harbin Dongan Auto Engine, and Hubei Mailyard Share, all surging by 10% each.

Hong Kong’s Hang Seng Index climbed 0.99% to close at 17,910.84, with Longfor Properties, Country Garden Services, and Zhongsheng Group posting gains of 13.37%, 12.13%, and 6.8%, respectively.

South Korea’s Kospi index edged up by 0.13% to 2,514.96.

Leading the gainers in Seoul were Sam Yang Foods, Hybe, and Chong Kun Dang Pharmaceutical, with increases of 6.7%, 6%, and 5.11%, respectively.

Australia’s S&P/ASX 200, however, experienced a decline of 0.62%, closing at 7,029.20.

Notable losers included Nickel Industries, down by 5.2%, Star Entertainment Group, which fell by 4.76%, and Allkem, with a decrease of 4.28%.

New Zealand’s S&P/NZX 50 index saw a modest increase of 0.16%, closing at 11,187.52.

Wellington’s gains were led by Restaurant Brands New Zealand, up by 4.83%; NZX, with an increase of 2.88%; and KMD Brands, which saw a rise of 2.53%.

In currency markets, the dollar was last down 0.21% on the yen, trading at JPY 149.23, while it dipped 0.39% against the Aussie to AUD 1.5224.

The greenback also decreased 0.45% on the Kiwi, changing hands at NZD 1.6530.

On the oil front, Brent crude futures were last down 0.96% on ICE at $81.17 per barrel, while the NYMEX quote for West Texas Intermediate declined 0.87% to $81.17.

Business activity contracts down under, Singapore prices jump

In economic news, Australia’s business activity contracted at its swiftest rate in 27 months, according to fresh estimates from Judo Bank.

The nation’s composite purchasing managers index (PMI) came in at 46.4 for November, indicating a more rapid contraction than October’s 47.6.

The manufacturing PMI hit a 42-month low at 47.7, while the services PMI reached a 26-month low at 46.3.

Judo Bank attributed the decline to “sharper new business downturns in both the manufacturing and service sectors” and cited softening economic conditions and high-interest rates negatively impacting budgets as contributing factors.

Meanwhile, in Singapore, the consumer price index surged by 4.7% year-on-year in October, surpassing September’s 4.1% increase.

That figure also exceeded economists’ expectations of 4.45% and marked the second consecutive month of accelerating inflation in the country.

The Monetary Authority of Singapore’s (MAS) core inflation measure, which excludes accommodation and private transport prices, rose to 3.3% in October from 3% in September.

MAS attributed this increase primarily to higher inflation in services, retail, and other goods and rising electricity and gas costs.

Reporting by Josh White for Sharecast.com.