Asian stocks uneven after shaky Wall Street lead


- Photo: AP

HONG KONG: Asian stocks got off to an uneven start on Thursday (Oct 31) following a weak lead from Wall Street, though better-than-expected manufacturing data from China provided a glimmer of good news for Beijing.

Investors appeared to be in a wait-and-see mood ahead of a coin-toss US election, and after a widely expected decision by the Bank of Japan to leave its main interest rate unchanged.

The three main US stock indices lost ground on Wednesday, while major European markets closed sharply lower as well.

Tokyo followed that lead on Thursday, dragged down by a drop in stocks linked to the semiconductor industry, which also saw a drop on Wall Street.

The Bank of Japan said in an outlook report accompanying its rate decision that there were "high uncertainties surrounding Japan's economic activities and prices", though it predicted continued growth and easing inflation in the next two years.

The central bank's decision to stand pat came after an election that saw the ruling coalition of Prime Minister Shigeru Ishiba lose its majority in the lower house for the first time since 2009.

Businesses and economists worry that as concessions to other parties whose support he now needs, Ishiba, 67, will offer tax cuts and higher spending, and go slow on reforms needed to improve Japan's competitiveness.

Seoul was also well down on Thursday, with Sydney, Wellington and Manila in the red as well.

"Asian equities are inheriting a wobbly baton today as earnings from U.S. tech giants failed to deliver the expected boost," said Stephen Innes of SPI Asset Management. "Wednesday's session was a clear nod to pre-election de-risking."

Shanghai and Hong Kong, however, saw healthy gains following a forecast-beating manufacturing report from China.

Factory output expanded this month for the first time since April, official data showed Thursday, rare good news for leaders struggling to boost activity in the world's second-largest activity.

The country is battling sluggish domestic consumption, a persistent crisis in the property sector and soaring government debt -- all of which threaten Beijing's official growth target of five percent for this year.

"The PMIs have overstated the weakness in China's economy during the past year," Julian Evans-Pritchard of Capital Economics said in a note.

"The good news is that, after turning a corner in September, the official surveys point to a further improvement in October, with an acceleration in manufacturing and services activity more than offsetting a further slowdown in construction."

Jakarta and Bangkok were also up, while Taipei was closed due to a typhoon.

Uncertainty over the outcome of this month's US elections, meanwhile, drove safe haven gold to a fresh high just shy of $2,790 an ounce on Thursday.

And oil prices continued their rebound in Asian trade, fuelled by good news on demand from the United States, as well as by press reports that OPEC countries are considering postponing an increase in crude supply. - AFP

Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In Aseanplus News

Thailand, Laos, and Myanmar launch haze control initiative
Sunandalaya building: A monument of love and learning in Thailand
New Indonesia defence chief harks back to dictator's rule
Shanghai braces itself for torrential rain as Typhoon Kong-rey advances
Devoted fan welcomes baby at superstar Jay Chou’s Malaysia concert, making headlines
Bank of Japan warns of 'high uncertainties' after election
Celebrity revelations raise issue of marital sexual abuse in South Korea
MACC arrests two enforcement officers for soliciting RM5,000 bribe
Let this season light our path to a bright and just future, Anwar says in Deepavali message
Remembering our furry family: Filipinos honour deceased pets, strays

Others Also Read