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ASIA STOCKS: Asian Equities Mixed, China Data Exceeds Expectations

ASIA STOCKS
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Asian equities are mixed today, with Chinese stocks leading the gains after the PBOC introduced a relending mechanism to support share buybacks. Chinese economic data for September exceeded expectations, adding to the positive sentiment. The MSCI Asia Pacific index gained 0.9%, led by Taiwan and TSMC's strong performance. Despite today’s rebound, the index is still set for its third consecutive weekly loss as regional focus shifts to earnings reports.

  • In China, the CSI 300 is +0.8%, while small-cap focused indices outperformed today with the ChiNext rallying more than 3%, CSI 1000 +1.75% & CSI 2000 +1.15%. The PBOC’s new relending mechanism aimed at boosting share buybacks added momentum. Retail sales grew 3.2% in September, beating estimates, though concerns remain over property prices, with new-home prices falling 0.71% m/m in September. Investors are also concerned about the longer-term economic outlook, especially in the property sector.
  • While in HK the HSI is 0.75% higher, bolstered by gains in tech shares, HSTech Index +1.05%.
  • Taiwan’s Taiex surged 2%, driven by a strong performance from TSMC +5.30%, which hit a record high following robust earnings and raised its sales forecast.
  • South Korean equities are lower today, with SK Hynix falling 4.60%, while Samsung is trading 0.70% lower. Foreign investors have again been selling local tech stocks, with a net outflow for the KOSPI of $280m, the KOSPI is trading 0.70% lower.
  • Japanese equities are little changed today, there was early support for exporters as the yen initially weakened above 150, however comments from Japan’s currency chief Mimura warned against one-sided moves which then saw some support for the currency. Earlier, Japan’s Headline National CPI for September printed in line with expectations at +2.5% y/y versus +3.0% prior. However, the Core and Core-Core measures printed above expectations at +2.4% y/y and +2.1% y/y respectively versus estimates of +2.3% and +2.0% and priors +2.8% and +2.0%.
  • Australia's ASX 200 is  0.90% lower today, giving back some of the week's gains. Mining stocks were the biggest drag, with iron ore futures falling sharply, pulling down major miners like BHP (-2.3%), Rio Tinto (-1.4%), and Fortescue (-3.1%). Gold miners, however, gained as gold extended its rally above $2,700 per ounce. New Zealand's NZX 50 closed 0.43% higher
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Asian equities are mixed today, with Chinese stocks leading the gains after the PBOC introduced a relending mechanism to support share buybacks. Chinese economic data for September exceeded expectations, adding to the positive sentiment. The MSCI Asia Pacific index gained 0.9%, led by Taiwan and TSMC's strong performance. Despite today’s rebound, the index is still set for its third consecutive weekly loss as regional focus shifts to earnings reports.

  • In China, the CSI 300 is +0.8%, while small-cap focused indices outperformed today with the ChiNext rallying more than 3%, CSI 1000 +1.75% & CSI 2000 +1.15%. The PBOC’s new relending mechanism aimed at boosting share buybacks added momentum. Retail sales grew 3.2% in September, beating estimates, though concerns remain over property prices, with new-home prices falling 0.71% m/m in September. Investors are also concerned about the longer-term economic outlook, especially in the property sector.
  • While in HK the HSI is 0.75% higher, bolstered by gains in tech shares, HSTech Index +1.05%.
  • Taiwan’s Taiex surged 2%, driven by a strong performance from TSMC +5.30%, which hit a record high following robust earnings and raised its sales forecast.
  • South Korean equities are lower today, with SK Hynix falling 4.60%, while Samsung is trading 0.70% lower. Foreign investors have again been selling local tech stocks, with a net outflow for the KOSPI of $280m, the KOSPI is trading 0.70% lower.
  • Japanese equities are little changed today, there was early support for exporters as the yen initially weakened above 150, however comments from Japan’s currency chief Mimura warned against one-sided moves which then saw some support for the currency. Earlier, Japan’s Headline National CPI for September printed in line with expectations at +2.5% y/y versus +3.0% prior. However, the Core and Core-Core measures printed above expectations at +2.4% y/y and +2.1% y/y respectively versus estimates of +2.3% and +2.0% and priors +2.8% and +2.0%.
  • Australia's ASX 200 is  0.90% lower today, giving back some of the week's gains. Mining stocks were the biggest drag, with iron ore futures falling sharply, pulling down major miners like BHP (-2.3%), Rio Tinto (-1.4%), and Fortescue (-3.1%). Gold miners, however, gained as gold extended its rally above $2,700 per ounce. New Zealand's NZX 50 closed 0.43% higher