Asia report: Stocks rise after stormy weekend in China

Markets in the Asia-Pacific region closed mostly higher on Monday, with Hong Kong's Hang Seng index standing out as the top performer, largely driven by a significant surge in property stocks.

“The upcoming week in China will begin with a thorough assessment of Typhoon Saola's human and economic toll,” said Stephen Innes at SPI Asset Management.

“This powerful storm landed in Guangdong province over the weekend, unleashing its fury on Shenzhen, Hong Kong, and Macau.

“As authorities and communities grapple with the aftermath, the focus will be on understanding the extent of the damage and coordinating relief efforts to aid those affected by the typhoon's impact.

“Hence, following up on last week’s market optimism could be challenging.”

Hong Kong leads equities as property stocks jump

In Hong Kong, the Hang Seng Index gained a notable 2.51%, closing at 18,844.16 points.

That upward momentum was mainly fueled by significant gains in property-related stocks like China Resources Land, which rose by 9.95%.

Financial sectors also shined, as seen in China Merchants Bank Co, up 8.87%, while Semiconductor Manufacturing International Corporation, a key player in the tech industry, saw a 10.91% increase.

China's markets also delivered a robust performance, with the Shanghai Composite and Shenzhen Component indices increasing by 1.4% and 1.41%, respectively.

Companies like Heilongjiang Transport Development Co and Asia Cuanon Technology Shanghai each skyrocketed over 10%.

Japan's Nikkei 225 and Topix indices made gains of 0.7% and 1.02%, closing at 32,939.18 and 2,373.73 points, respectively.

Industrial and shipping companies showed resilience; Kobe Steel was up 6.1%, Kawasaki Kisen Kaisha gained 5.01%, and JFE Holdings increased by 4.64%.

South Korea's Kospi index rose by 0.81% to 2,584.55, with Hyosung TNC and Korea PetroChemical posting gains of 13.19% and 8.81%, respectively.

Australia's S&P/ASX 200 had a moderate uptick of 0.56% to reach 7,318.80, led by gains in Liontown Resources and Paladin Energy.

New Zealand's S&P/NZX 50, however, slid slightly by 0.14%, with Skycity Entertainment Group and Pacific Edge seeing significant losses of 13.3% and 6.54%, respectively.

Currency markets were relatively steady, with the dollar last up 0.13% on the yen at JPY 146.41, while it gained 0.06% on the Kiwi to NZD 1.6832.

The greenback did, meanwhile, slip 0.08% against the Aussie to change hands at AUD 1.5478.

Oil markets were also largely stagnant, as Brent crude futures dipped 0.15% on ICE to $88.42 per barrel, while the NYMEX quote for West Texas Intermediate was unchanged at $85.55.

New Zealand sees growth in quarterly trade figures, surpassing last year

In a relatively quiet day for economic news, New Zealand saw a rise in its trade activities for the quarter ended in June.

According to fresh government statistics, the nation's total trade value reached NZD 51.8bn (£24.37bn), marking a 4.9% increment in comparison to the same period last year.

The export sector played a notable role in the uptick, with the value of goods and services exported in the quarter amounting to NZD 25.3bn, up from the NZD 23.1bn recorded a year earlier.

On the import side, the country also saw growth, albeit at a more moderate rate.

Imports for the quarter were valued at NZD 26.6bn, slightly up from NZD 26.3bn in the corresponding period in 2022.

Reporting by Josh White for Sharecast.com.