Asia report: Stocks rise, NZ inflation hits 32-year record
Markets were in the green in Asia on Monday, with Hong Kong’s bourse leading the gains, as consumer inflation reached a decades-high level in New Zealand.
In Japan, traders were enjoying a long weekend for the Marine Day holiday, as the yen strengthened 0.27% on the dollar to last trade at JPY 138.19.
On the mainland, the Shanghai Composite was ahead 1.55% at 3,278.10, and the technology-heavy Shenzhen Component was 0.98% firmer at 12,532.65.
South Korea’s Kospi was up 1.9% at 2,375.25, while the Hang Seng Index in Hong Kong jumped 2.7% to 20,846.18.
Chinese technology plays led the gains in the special administrative region, with the Hang Seng Tech Index leaping 3.02%.
Alibaba Group was up 1.66%, Longfor Group added 4.11%, Meituan jumped 5.86%, and Tencent Holdings was 2.34% higher.
The blue-chip technology stocks were stronger in Seoul as well, with Samsung Electronics up 3.17% and SK Hynix ahead 2.33%.
“Markets rallied in Asia, despite the possibility of further lockdowns in China amid increasing Covid-19 testing, as investors switched into risk-on mode as they leaned into the availability of more beaten down stocks, which could be providing attractive entry levels,” said Interactive Investor head of markets Richard Hunter.
Oil prices were higher at the end of the Asian day, with Brent crude futures last up 2.3% on ICE at $103.49 per barrel, and West Texas Intermediate 1.98% firmer on NYMEX at $99.52.
In Australia, the S&P/ASX 200 advanced 1.23% to 6,687.10, while across the Tasman Sea, New Zealand’s S&P/NZX 50 eked out gains of 0.37% to 11,163.63.
Fresh economic data out of New Zealand showed the country’s consumer price index jumping 7.3% year-on-year in the June quarter - the fastest price rise for 32 years.
Statistics New Zealand said the main impetus for the sharp jump was housing rental prices, and construction costs amid serious shortages for some key materials.
The data came after the Reserve Bank of New Zealand tacked 50 basis points onto its official cash rate last week, taking it to 2.5%.
Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.63% at AUD 1.4628, and the Kiwi advancing 0.31% to NZD 1.6181.
Reporting by Josh White at Sharecast.com.