Asian markets experienced a positive trajectory on Thursday, buoyed by gains from U.S. stocks, boosted notably by stellar quarterly earnings from major firms like Morgan Stanley and United Airlines. Chinese markets saw a significant uptick as the government unveiled plans to expand financing options for housing projects, aiming to revive a stagnant property market plagued by stricter lending practices directed at developers.
In Hong Kong, the Hang Seng Index climbed 0.9%, closing at 20,460.86, while the Shanghai Composite Index edged up 0.1% to 3,205.95. Upcoming economic data from China is set to be released on Friday, with expectations indicating an annual growth rate of approximately 4.5% for the April-September quarter, which falls short of the government’s goal of around 5%. While Chinese leadership has assured further economic initiatives, many investors remain cautious, hoping for bolder reforms to address long-standing issues such as significant local debt and tepid consumer demand.
Reports suggest that the latest financial policies generally target gradual economic recovery rather than immediate, dramatic rebounds. Economists from ANZ Research highlighted that without substantial changes in housing policy, the current financial adjustments may not spur robust investment in real estate. However, they acknowledged that the new measures could ease financial strain on developers, reducing risks of a liquidity crisis.
Meanwhile, Japan’s Nikkei 225 index dipped 0.6% to 38,950.18, following the announcement of a 1.7% decrease in exports for September compared to the previous year, aggravating Japan’s trade deficit. Other regional performance included South Korea’s Kospi retreating 0.2% to 2,606.23 and Australia’s S&P/ASX 200 gaining 0.6% to 8,337.60. Taiwan’s Taiex rose 0.3%, whereas India’s Sensex recorded a slight decline of 0.3%. In Thailand, the SET index surged 0.7% after the central bank’s decision to lower its key interest rate to 2.25%.
In the United States, the S&P 500 closed up 0.5% to 5,842.47, recovering much of the losses from earlier high records. The Dow Jones Industrial Average soared by 0.8%, reaching a historic 43,077.70, while the Nasdaq Composite increased by 0.3%, finishing at 18,367.08. Morgan Stanley’s shares surged by 6.4% following its impressive quarterly results, with CEO Ted Pick commenting on the favorable global operating conditions. United Airlines’ stock soared by 12.4% after reporting a less severe dip in summer profits than anticipated and announcing a substantial $1.5 billion stock buyback program.
Energy stocks maintained stability, with Exxon Mobil gaining 0.3%, reflecting recent fluctuations in oil prices amid diminishing concerns regarding geopolitical tensions that could impact oil production from Iran. As market players brace for a challenging economic landscape, crude oil prices saw a modest increase in pre-market trading, with U.S. benchmark crude climbing to $70.60 per barrel.
The dollar experienced slight depreciation against the Japanese yen, transitioning from 149.64 to 149.48. At the same time, the euro dipped to $1.0858 from $1.0862. As global markets continue to fluctuate amidst evolving economic signals, investors remain vigilant, keeping an eye on developments that could further sway market dynamics.