Tags: Asia | stocks | Federal Reserve | China

Asian Stocks Climb Before Fed as Chinese Industrial Profits Rise

Tuesday, 28 Oct 2014 09:24 AM

Asian stocks outside Japan rose as Chinese industrial profits advanced and investors awaited a Federal Reserve decision on its stimulus program. Shares in Tokyo fell ahead of a central bank meeting.

Belle International Holdings Ltd. surged 9.9 percent in Hong Kong, the biggest rise on the regional gauge, after the maker of women’s shoes said first-half profit increased. Westpac Banking Corp., Australia’s second-largest lender, rose 1 percent and China Construction Bank Corp. gained 2.5 percent, with financial shares the largest contributor to gains. Standard Chartered Plc bucked the trend, sinking 5.5 percent, after posting a 16 percent slide in third-quarter profit before tax.

The MSCI Asia Pacific Excluding Japan Index advanced 0.7 percent to 476.56 as of 4:10 p.m. in Hong Kong. The Fed will probably eliminate its remaining $15 billion in monthly bond- buying when it concludes a policy meeting tomorrow, and leave its key interest rate unchanged at a range of zero to 0.25 percent, according to economists surveyed by Bloomberg.

“China is positive, helped by a recovery in industrial profits,” said Stan Shamu, a Melbourne-based market strategist at IG Ltd. “Some analysts feel the Fed will play it safe at this meeting and wait until December for any surprises, as that meeting will contain updated forecasts.”

The Shanghai Composite Index advanced 2.1 percent, the most since July. Hong Kong’s Hang Seng Index gained 1.6 percent. Data from the Chinese statistics bureau showed profit at industrial companies grew to 563.4 billion yuan ($92.2 billion) in September from a 0.6 percent drop in August. For the first nine months of the year, profits climbed 7.9 percent.

Protest Impasse

Hong Kong’s pro-democracy protesters will this evening mark a month since police used tear gas in a failed attempt to disperse them, as leaders debate whether to reopen discussions with the government. The pro-democracy protest is at an impasse after its leaders shelved a vote among participants on its direction over the weekend after televised talks between student leaders and the government failed to yield a solution.

China Railway Group Ltd. jumped 9.9 percent in Shanghai and 7.6 percent in Hong Kong. Government officials involved said the State Council has ordered the merger of trainmakers China Northern Locomotive & Rolling Stock Industry Group Corp. and CSR Group into one company. CNR and CSR remain suspended from trading in Hong Kong and Shanghai.

Australia, South Korea

Australia’s S&P/ASX 200 Index slid 0.1 percent. South Korea’s Kospi index sank 0.3 percent, while Singapore’s Straits Times Index slipped 0.4 percent. New Zealand’s NZX 50 Index added 0.1 percent.

Japan’s Topix index dropped 0.2 percent after the yen gained 0.3 percent against the dollar yesterday. Data showed retail sales beat estimates in the world’s third-largest economy. The Bank of Japan will consider moderating its language on inflation in a report this week to reflect the impact of lower oil prices, said people familiar with the decisions.

Futures on the Standard & Poor’s 500 Index rose 0.3 percent after the gauge yesterday slipped 0.2 percent. U.S. energy producers declined after oil dipped below $80 a barrel, while telephone and consumer shares rose.

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Asian stocks outside Japan rose as Chinese industrial profits advanced and investors awaited a Federal Reserve decision on its stimulus program. Shares in Tokyo fell ahead of a central bank meeting.
Asia, stocks, Federal Reserve, China
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2014-24-28
Tuesday, 28 Oct 2014 09:24 AM
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