Positive U.S. Data Boost Asian Stocks, What To Invest In?
Following a solid overnight session on Wall Street and a slew of encouraging news, Asian markets rose on Thursday. The tech-heavy Hong Kong benchmark led advances ahead of Alibaba Group’s second-quarter results.
The Hang Seng index in Hong Kong increased by as much as 2% in early trade, with the greatest gains going to tech giants Tencent Holdings Ltd (HK:0700) and Alibaba Group Holding Ltd (HK:9988).
As of 2251 ET, China’s Shanghai Shenzhen CSI 300 increased 0.4 percent, while Japan’s Nikkei 225 gained 0.5 percent (0251 GMT). Ahead of its second-quarter earnings, which are expected before the U.S. opens later in the day, Alibaba increased by about 5%. Because of declining trends in China, its biggest market, the e-commerce behemoth is predicted to report its first-ever revenue decrease.
China’s Economy Remains Under Pressure
Analysts however predict that when China’s economy recovers, its chances may improve later in the year. A solid overnight session on Wall Street encouraged sentiment in the Asian start. On the strength of strong earnings from PayPal (NASDAQ: PYPL), one of the day’s top performers, the Nasdaq Composite soared to a three-month high. Many solid earnings also helped to increase the S&P 500 and Dow Jones Industrial Average. An unfavorable manufacturing estimate earlier in the week was partially offset by encouraging service sector data from the United States. Australia’s leading ASX 200 indexes increased 0.2% because of the nation’s record-breaking trade surplus in June.
According to the estimate, Australia’s economy would likely continue to be supported by stable demand for its commodities exports despite internal challenges. In the meanwhile, growing worries about a possible conflict with China caused Taiwan equities to underperform their Asian counterparts. The Taiwan Weighted index decreased by 0.5%.
Drones are said to have flown over Taiwan’s remote islands as hackers attacked the website of the military ministry. This comes after China reacted angrily to Nancy Pelosi’s earlier this week arrival in Taipei as speaker of the US House of Representatives. According to reports, China is also conducting military exercises close to Taiwan’s maritime border.
