Asia report: Seoul leads most markets higher in buoyant trading

Markets across the Asia-Pacific region finished on a mostly upward trajectory on Wednesday, with South Korean stocks being the pacesetter in gains.

Patrick Munnelly, market analyst at TickMill, said Asian equity markets followed the positive global sentiment driven by recent dovish comments from the Federal Reserve and optimism over potential stimulus measures in China.

“The Nikkei 225 gained, briefly surpassing the 32,000 handle,” he noted.

“Hang Seng and the Shanghai Composite also traded higher, with expectations of increased financial support and possible stimulus measures in China, including a higher budget deficit for the year to achieve its growth target.”

Seoul leads region’s gains on renewed positive sentiment

In South Korea, the Kospi surged by a substantial 1.98% to 2,450.08.

Among the prominent performers in Seoul were Kiwoom, rising 15.1%, and OCI, which appreciated by 12.43%.

Japan’s mixed-market picture featured the Nikkei 225 climbing 0.6% to 31,936.51, while the Topix modestly retracted by 0.19% to 2,307.84.

Notable gainers on Tokyo’s benchmark included Tokyo Electric Power, which saw a rise of 3.3%, followed by SoftBank Group and Advantest, which climbed 2.64% and 2.53% respectively.

Moving to China, marginal gains were seen with the Shanghai Composite ticking up 0.12% to 3,078.96, while the Shenzhen Component recorded a slightly higher increment of 0.35% to stand at 10,084.90.

Anhui Xinhua Media and Hainan Haiqi Transportation Group stood out in Shanghai, soaring 10.04% and 9.99% respectively.

In Hong Kong, the Hang Seng Index gained 1.29% to hit 17,893.10.

Sunny Optical Technology was a beacon, skyrocketing 12.23%, while Xinyi Solar and Semiconductor Manufacturing International Corporation also posted appreciable gains of 7.17% and 6.71%.

Australia's S&P/ASX 200 experienced a gentle ascent of 0.68% to 7,088.40, with Boss Energy and Summerset Group notably advancing by 6.7% and 5.75% respectively.

Meanwhile, New Zealand’s S&P/NZX 50 modestly appreciated by 0.12% to 11,306.44, with Contact Energy and SkyCity Entertainment Group each making mild gains of around 2%.

On the currency front, the dollar held steady against the yen at JPY 148.71, while it grew by 0.27% and 0.37% on the Aussie and Kiwi, positioning at AUD 1.5590 and NZD 1.6602 respectively.

Turning to the oil markets, both major benchmarks witnessed a slight decrease.

Brent crude futures were last down 0.26% on ICE at $87.42, while the NYMEX quote for West Texas Intermediate diminished by 0.37% to $85.65 per barrel.

Consumer spending and manufacturer confidence in focus

In economic news, China’s retail sales saw a 9% uptick during the holiday period of 29 September to 5 October , according to the Ministry of Commerce.

However, analysts noted a relative deceleration in the growth of consumer spending in comparison to pre-pandemic trajectories.

Notably, the data excluded sales figures from the final day of the Golden Week holiday, which might have provided a more comprehensive overview of the scenario during one of China’s peak shopping seasons.

Meanwhile, in Japan, business sentiment among substantial manufacturers showed a stoic demeanour, holding steady at +4 index points in October, as per the Reuters Tankan survey.

Despite global economic challenges, a silver lining appeared in the form of an incrementally optimistic view over the upcoming quarter.

Additionally, the services sector showed a modest uplift, with the index ascending to +24 in October, a slight elevation from +23 in the prior month.

That upward shift was attributed partially to a buoyant domestic demand, providing a partial counterbalance against the international economic pressures currently being experienced.

At the same time, an unconfirmed report from Kyodo News suggested the Bank of Japan (BoJ) could revise its inflation outlook upward, nudging it closer to the 3% mark for the business year ending in March.

The current forecast stood at 2.5%, with the uplift allegedly rooted in broader-than-anticipated price surges and escalating crude oil prices, along with the yen’s depreciation amplifying import prices.

Reporting by Josh White for Sharecast.com.