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Asian Stocks followed the rise of Wall Street

Highlights:

USA
The Dow Jones slipped by 0.2% or 56 points, to 35,399. Meanwhile, the S&P 500 gained 0.4% or 319.42 points, to 4,528.89. The Nasdaq climbed by 0.9% or 136.39 points to 15,265.89.
ASIA
The Nikkei edged up by 1.08% or 300.25 points and ended at 28,089.54.
The Kospi closed with an increase of 1.75% or 55.08 points to 3199.27.
The Hang Seng Index climbed by 1.33% or 339.45 points to 25,878.99.
EUROPE
The Stoxx 600 was trading with a rise of 0.14%.

The Dow Jones slipped, but S&P 500 and Nasdaq hit new records

The Wall Street closed mixed, but the Nasdaq and S&P 500 posted new records on Monday. It followed the Fed’s Chairman Jerome Powell’s dovish speech.

The Dow Jones slipped by 0.2% or 56 points, to 35,399. Meanwhile, the S&P 500 gained 0.4% or 319.42 points, to 4,528.89. The Nasdaq climbed by 0.9% or 136.39 points to 15,265.89.

The financial sector posted the most significant drop. Capital One lost more than 6%, and Wells Fargo slipped by 2.8%.

Airlines were also affected after the EU proposal to member states to re-include in the list of countries to which non-essential travel is not recommended.

The popular US brokerage application Robinhood also experienced a bad day, plunging by around 7%. It followed the SEC’s Gary Gensler’s speech that it was not ruled out to ban the controversial tool.

As for the records Wall Street indicators reached, according to analysts, they have been produced by the good corporate results presented this season.

Reopening could lead to higher earnings for stocks

LPL Financial Director of Markets Strategy Ryan Detrick stated that risks such as the Delta variant, supply chain disruptions, or inflation pressure, particularly on wages, cannot be discounted. However, the efficiency of US companies and the strength of reopening could lead to higher earnings for stocks.

More than half of the sectors ended the day with gains. Real estate led the advances by adding 1.15%. Meanwhile, the technology sector increased by 1.09%, and non-essential consumer goods expanded by 0.92%. In contrast, the financial, energy, and raw materials sectors led the losses.

Among the 30 prominent companies listed on the Dow Jones, the profits of Apple were significant. The company surged by 3.04%. Meanwhile, Microsoft gained a solid 1.29%, and Home Depot climbed by 1.15%. American Express was the most affected of the day, losing 2.60%. Boeing followed sliding by 1.84%, and Travelers, yielding 1.63%.

The Nikkei closed in the green after consecutive declines

The Nikkei average was significantly firmer today and was pushed up by brands like Fast Retailing and East Electrabel. It edged up by 1.08% or 300.25 points and ended at 28,089.54.

The trading volume of the first section was 1,235,240,000 shares, and the trading value was 3,013.7 billion yen.

By industry, the shipping, steel, and precision equipment had the highest rate of increase. On the other hand, the air transportation, land transportation, and electricity/gas industry had the highest rate of decline.

The Tokyo stock market started the day with losses, weighed down by the declines on Wall Street. The Nikkei entered positive territory after the mid-session pause and finished with a solid gain thanks to investors’ appetite for bargains.

Among the equities with the highest market capitalization, the technological Softbank increased by 0.47%. The Japanese automobile leader, Toyota Motor gained 0.60%.

The consumer electronics corporation Sony also added 1.11%. Meanwhile, the manufacturer of components for semiconductors Tokyo Electron advanced by 1.43%.

As for Fast Retailing, the multinational textile company gained 2.09%.

Kospi climbed up on foreign buying

The Kospi rose by nearly 2% supported by foreign buying. It closed with an increase of 1.75% or 55.08 points to 3199.27. Its rise followed China’s economic indicators falling short of expectations.

Looking at the trading tendency, foreigners alone made a net purchase of 1.16 trillion won. On the other hand, individuals and institutions net sold 985.4 billion won and 186.9 billion won, respectively.

The trading volume was 647.3 million shares and the transaction value amounted to 15,198.2 billion won.

By industry, there was a lot of increase. Non-ferrous metals raised by 3%. Meanwhile, electrical products, semiconductors, and semiconductor equipment, non-life insurance, and oil and gas sectors rose by 2%. As for the losses, Internet and catalog retail, publishing, and credit cards slipped by 1%.

Tech giant Samsung Electronics, gained 2.82%, while the world’s second-largest memory chip maker, SK Hynix, advanced by 2.9%.

At the same time, Naver added 2.57%, and Kakao gained 2.31%.

Also, Samsung Biologics advanced by 1.90%, Samsung SDI surged by 3.93%, Hyundai Motor added 1.19%, and Celltrion posted a 0.69% gain.

Meritz Financial Group soared by 6.48% on the news that it was about to acquire 50 billion won worth of treasury stock. Besides, SK Bioscience climbed by 4.67% after reporting phase 3 clinical administration of a COVID-19 vaccine candidate.

Hang Seng advanced, supported by the Tech sector

The Hang Seng Index closed higher and hit a two-week high. Technology stocks led the gains today. The Hang Seng Index climbed by 1.33% or 339.45 points to 25,878.99. At the same time, the Hang Seng China Enterprises rose by 2.09% or 187.94 points, to 9,183.76 points.

This month, the Hang Seng index slipped by 0.3%, which is its three-month consecutive decline, longest since March 2020.

Meituan’s share price rose more than 9% due to user expansion and other second-quarter revenue exceeding expectations.

Tencent and Alibaba saw increases of 2.36% and 3.48%, respectively.

Xiaomi lagged behind the rest of the technology leaders, only adding 0.40%.

The information and communications group performed best. Kingsoft surged by 9.68%, Hengteng Networks added 7.61%, and China Communications Services increased by 6.7%.

Except for Commerce and Industry, all the sub-indices closed in negative.

Real Estate slid by 0.36%. Finance shed 0.60% and Services lost 0.18%.

As for the state oil companies, their results were mixed. Petrochina and Sinopec expanded by 3.33% and 2.43%, respectively. Meanwhile, Cnooc dropped by 0.26%.

The insurance sector had a bad day. Ping An or AIA saw some of the steepest falls of the day, losing 3.90% and 1.28%, respectively.

In the real estate sector, Longfor Group saw the biggest drop of the day, shedding 4.85%.

The WH Group food processing group had the highest increase of the day, surging by 7.45%. It was followed by the Haidilao restaurant chain, adding 6.80%.

European stocks show a positive trend

The main European stock markets tried to continue a positive trend on the last days of the month.

The Stoxx 600 was trading with a rise of 0.14%.

The rise followed the news about a slower pace of growing factory activity in China. The official manufacturing Purchasing Managers’ Index for August came in at 50.1 in China, against July’s reading of 50.4.

Dutch technology investor Prosus rose by 3.65% after agreeing to acquire the Indian payments platform BillDesk for $4.7bn.

Travel stocks retreated. British Airways, Iberia parent IAG and budget airlines such as Wizz Air and EasyJet traded with losses.

Banks also fell.

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