Asian stocks rose as regulators said a stock-trading link between Hong Kong and Shanghai will start next week. Equities in Tokyo fell as the yen strengthened.
Hong Kong Exchanges & Clearing Ltd., the world’s second-biggest exchange by market value, climbed 4.6 percent, its steepest advance since April when the stock connect was announced. Samsung Electronics Co. surged 5.1 percent in Seoul as technology shares led gains around the region. Toyota Motor Corp., a carmaker that gets 75 percent of revenue outside Japan, dropped 1.5 percent.
The MSCI Asia Pacific Index added 0.8 percent to 141.27 as of 4:06 p.m. in Hong Kong. The city’s bourse and Shanghai’s will allow cross-border trading between each other’s venues from Nov. 17, regulators said today, giving foreign investors unprecedented access to China’s so-called A-share market.
“Finally we have a date,” said Jason Low, equity strategist at DBS Wealth Management & Private Bank in Singapore. “This is positive. With this announcement there could be a lot more room for upside in China A-shares. We remain bullish.”
Hong Kong’s Hang Seng Index gained 0.8 percent and the Shanghai Composite surged 2.3 percent. The stock connect will allow a net 23.5 billion yuan ($3.8 billion) of daily cross- border purchases, marking one of China’s biggest steps toward opening up its capital account, increasing use of the yuan and turning Shanghai into an international financial center. The Hang Seng China AH Premium Index rose 1.6 percent today to 100.83, erasing the premium of dual-listed Hong Kong shares over their counterparts in Shanghai.
Singapore’s Straits Times Index advanced 0.6 percent and Taiwan’s Taiex Index rallied 1.5 percent. New Zealand’s NZX 50 Index added 0.9 percent, closing at a fresh record high. South Korea’s Kospi index gained 1 percent. Australia’s S&P/ASX 200 Index dropped 0.5 percent.
Japan’s Topix index slid 0.3 percent as the yen rose 0.4 percent to 114.11 per dollar, extending its 0.5 percent gain on Nov. 7 after a U.S. jobs report dragged the greenback lower. The gauge climbed 16 percent over the three weeks through Nov. 7 and touched a six-year high after the Bank of Japan boosted stimulus and the nation’s pension fund said it will buy more shares. The yen slumped to a seven-year low against the dollar.
Data at the weekend showed Chinese exports rose more in October than economists had estimated, sparking concern over fake invoicing as imports grew slower than expected. Policymakers have eschewed across-the-board stimulus and interest-rate cuts even as growth cooled to the weakest pace in more than five years last quarter. China’s producer prices fell for a record 32nd straight month in October, data showed today.
U.S. employment gains exceeded 200,000 for a ninth straight month in October and the jobless rate unexpectedly fell to a six-year low, a Labor Department report showed Nov. 7. Payrolls increased by 214,000 in October following a 256,000 advance the prior month that was more than initially estimated. The median forecast in a Bloomberg survey of 100 economists called for a 235,000 advance.
GCL-Poly Energy Holdings Ltd. plunged 17 percent to HK$2.10, its biggest decline in more than six years. The world’s biggest maker of polysilicon slumped after floating a plan to sell its solar wafer operations.
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