Asian Stock Market: Evergrande lifts sentiment with +10% gains

Asian equities track Wall Street gains amid an off in Japan.
Evergrande snaps seven-day downtrend despite mixed concerns.
Fed hints at tapering but a gap from rate-hike gains major attention.

Anil Panchal FXStreet

Markets in Asia-Pacific remain upbeat during early Thursday as headlines over Fed taper and Evergrande favored bulls amid a holiday in Japan.

That said, the MSCI’s index of Asia-Pacific shares outside Japan rises 0.47% by press time before the European session open.

Evergrande Chairman Hui Ka Yan sounds optimistic over the future performance and underpins over 10% upside of the stock on the Hong Kong Stock Exchange. The same helped the Heng Send index to rise around 0.60% on a day.

Also favoring the market sentiment are the chatters over US stimulus and covid booster shot, not to forget a lack of clarity over the Fed rate hike even as the tapering is likely to conclude in 2022.

Amid these plays, Australia’s ASX 200 and New Zealand’s NZX 50 gain 1.0% each whereas markets in China remain firmer, up near 0.60% on an average.

Further, South Korea’s KOSPI bucks the trend with 0.35% intraday loss but Indonesia’s IDX Composite and India’s BSE Sensex remain on the front foot to portray a rosy picture for investors.

The risk-on mood weighed on the US Dollar Index (DXY) but the commodities aren’t cheering the same as gold stays pressured while oil prices remain firmer at the latest.

Looking forward, flash readings of September month activity data from the Markit and weekly job numbers for the US will be important data to watch. Above all, the Bank of England’s (BOE) Quarterly Inflation Report (QIR) and updates over the troubled real-estate player will be the key to follow for fresh impulse.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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