Global Stocks Rise Higher Ahead of US Employment Report

Highlights:

• USA
  The Dow Jones decreased by 0.14% or 48.20 points, to 35,312.53. Meanwhile, the selective S&P 500 increased by a very slight 0.03% or 1.41 points, up to 4,524.09. The Nasdaq index rose by 0.33% or 50.15 points to 15,309.38. 
• ASIA
  The Nikkei gained 0.33% or 92.49 points, to 28,543.51.
  The Kospi dropped by 0.97% or 31.17 points to 3207.02.
  The Hang Seng Index climbed by 0.24% or 62.14 points to 26,090.43.

• EUROPE
  The EuroStoxx 50 index gained 0.14%, the FTSEurofirst 300 increased by 0.12%, and the Stoxx 600 added 0.24%.

Wall Street started a new month on a mixed ground

Wall Street closed mixed this Wednesday. 

The Dow Jones decreased by 0.14% or 48.20 points, to 35,312.53. Meanwhile, the selective S&P 500 increased by a very slight 0.03% or 1.41 points, up to 4,524.09. The Nasdaq index rose by 0.33% or 50.15 points to 15,309.38. 

With the start of the new month, investors’ eyes are already focusing on the employment figures for August. It will be revealed by the authorities this Friday.

The employment number is below expectations

The human resources management firm ADP has reported that private companies have added 374,000 new jobs. It’s 44,000 more than in July, but considerably below expectations of around 600,000.

The government plans to announce the number of people on the payroll on Friday, except the agricultural sector. Economists expect that it will increase by 720,000 new jobs and that the unemployment rate will fall to 5.2%.

Experts believe very low data could send the signal that job growth is stagnation. It could affect the decline. 

However, E-Trade managing director of investment strategy Mike Loewengart points out that is likely to be a good thing for the markets. This means that the Federal Reserve continues the easy money policy.

On Friday, the US central bank announced it could begin to withdraw stimulus if the economy evolved as anticipated.

Among the sectors, real estate was the most favored today, growing by 1.68%. It was followed by public services, increasing by 1.3%. Meanwhile, the energy sector lost 1,48%, the financial sector dropped by 0.62%, and the industrial sector shed 0.36%.

From the 30 prominent firms listed on the Dow Jones, Walt Disney profited the most, adding 1.2%. At the same time, Salesforce climbed by 1.15%, and Procter & Gamble increased by 1.02%. As for the most affected firms, the day was worst for Caterpillar, sliding by 1.38%. Also, Chevron dropped by 1.09%, and Amgen declined by 0.96%.

 Wall Street gain encouraged the Nikkei

The Nikkei average continued to increase. 

Individual investors have a strong willingness to buy. However, corporate regulations and concerns about the economic slowdown in China are becoming risks. So, it is difficult to maintain an upward trend. 

The Nikkei gained 0.33% or 92.49 points, to 28,543.51. 

Over 4 consecutive days, Topix added 0.14% or 2.78 points to stand at 1,983.57.

The trading value of the first section of the Tokyo Stock Exchange was 2,639,575 million yen. 

Among the 33 industries on the Tokyo Stock Exchange, prices have increased for 16 industries. Meanwhile, land transportation, air transportation, and steel have fallen.

Individually, Tokyo Electron, Advantest, Kikkoman performed well. Softbank Group, Astellas Pharma, Chugai Pharmaceutical were weak due to profit-taking sales. 

In addition, electric railway stocks were generally soft. JR West, which announced a public offering the day before, fell by 13.36%. Associative sales spread to other electric railway stocks. JR East and Seibu Holdings were significantly cheaper. Meanwhile, Odakyu Electric Railway and Keio Electric Railway renewed their lows since the beginning of the year.

As for the number of rises and falls in the first section of the Tokyo Stock Exchange, 896 stocks increased, 1197 of them dropped, and 96 stayed unchanged.

Kospi drops due to the foreign selling

The Kospi fell due to the selling of foreigners and institutions. 

The Kospi registered a loss for the second consecutive day and dropped by 0.97% or 31.17 points to 3207.02.

The trading session started with losses after mixed closings on Wall Street on Wednesday.

The losses widened as institutional and foreign operators bet on sales after Kospi’s rise for the four sessions in a row.

On the other hand, inflation data in South Korea also weighed today. In August, the country registered the fifth consecutive monthly rise in inflation above 2%. This trend led the central bank to raise rates last week for the first time in three years.

Among the biggest stocks by market cap, Samsung Electronics shed 1.04%. Meanwhile, SK Hynix declined by 1.39%, Naver slipped by 0.56%. Also, Samsung Biologics lost 1.46%, LG Chem sank by 1.39%, Hyundai Motor yielded 1.63%, and Celltrion declined by 0.86%.

On the other hand, cacao advanced by 0.65%.

As for the Kosdaq, it ended with a rise of 0.12% or 1.21 points to 1047.19.

Other significant losses were posted by EcoproBM, which shed 3.35%. Besides, Seegene lost 2.99%, Pearl Abyss declined by 2.23%, and Celltrion Pharm yielded 2.12%.

Hang Seng gained after a strong performance in the tech sector

During afternoon trading, the Hang Seng Index slipped from the morning highs and continued to waver within a narrow range. However, it still rose for four consecutive days, reaching the longest gain since March. The Hang Seng Index climbed by 0.24% or 62.14 points to 26,090.43. The Hang Seng China Enterprises Index added 0.75% or 69.98 points to 9,341.3.

The gains of individual online platform stocks have narrowed. Meituan closed with a rise of 0.08%.

The information and communications group performed best. Meitu surged by 9.24%, YOFC increased by 9.16%, and Baidu added 5.56%.

Technology heavyweights Alibaba and Tencent contributed the most to the Hang Seng Index rising. Alibaba expanded by 3.51%, and Tencent gained 1.56%.

Chinese state companies had a positive session. Oil company Petrochina increased by 0.58%, and the telephone operator China Mobile advanced by 1.04%.

European stock market trades in positive territory

The main European stock markets traded with a slight increase at the start of Thursday’s session. Caution is limiting variations as the market is pending further indications on the recovery in employment in the United States.

The EuroStoxx 50 index gained 0.14%, the FTSEurofirst 300 increased by 0.12%, and the Stoxx 600 added 0.24%. The latter neared its record of August 13 on Wednesday following the solid results of the PMI surveys on the manufacturing sector in Europe.

Investors now are looking forward to the monthly report from the US Department of Labor.