Asia: Stocks rise outside of Japan after Chinese industrial profits gain

Asian stocks were mostly higher after Chinese industrial profits gained.

Chinese industrial profits rose 0.4% in September after falling 0.6% a month earlier.

Hong Kong’s Hang Seng index ended 1.63% higher, while the Shanghai composite advanced 2.07%.

Japan, on the other hand, saw its Nikkei 225 fall 0.38% after the yen rose against the dollar to hurt exporters.

A report showed Japanese retail trade rose 2.3% year-on-year in September after a 1.2% increase a month earlier. Analysts had predicted a 0.8% increase.

Meanwhile, traders are awaiting the Federal Reserve’s policy decision on Wednesday when the US central bank is expected to end its monthly bond purchase programme and keep interest rates unchanged.

“I think any major surprises tomorrow is very unlikely simply because there is no press conference following the decision, which means there would be no opportunity to question any big changes in policy or stance,” said Alpari UK analyst Craig Erlam.

“There will be a statement released alongside the announcement, but I think the FOMC would rather save any big announcements for those meetings when they can explain themselves, the next one of which is in December.”

China to merge nation’s largest trainmakers

Chinese government officials said the State Council has ordered the merger of trainmakers China Northern Locomotive & Rolling Stock Industry Group Corp. and CSR Group into one company.

The move comes as China expands the world’s largest high-speed rail network.

China Railway Group rallied in Shanghai and in Hong Kong.

In other company news, Belle International Holdings advanced after the women’s shoe maker reported a rise in first-half profit.