Asia-Pacific Stock Investors Hoping to Build on Last Week’s Gains Ahead of Key China Manufacturing Report
Asia-Pacific stock market investors are hoping for follow-through buying after last week’s strong performance ahead of Monday’s opening. Investors will get the opportunity to react to Friday’s U.S. inflation data that was released after the Asian market close. However, volume could be on the light side due to the U.S. Memorial Day holiday.
Investors will have the opportunity to react to the release of China’s official manufacturing Purchasing Managers’ Index for May, which could be a market-moving event.
In the cash market last week, Japan’s Nikkei settled at 29149.41, up 831.58 +2.94%. South Korea’s KOSPI Index finished at 3188.73, up 32.31 or +1.02% and Hong Kong’s Hang Seng Index closed at 29124.41, up 665.97 or +2.34%.
China’s Shanghai Index settled at 3600.78, up 114.22 or +3.28% and Australia’s S&P ASX/200 Index finished at 7179.50, up 149.20 or +2.12%.
China Securities Regulator Paying Great Attention to Commodity Price Fluctuations
The China Securities Regulatory Commission (CSRC) pays great attention to commodity price fluctuations and has been cracking down on irregularities in the futures market, it said on Friday, amid worry about higher prices being passed on to consumers, Reuters reported.
“CSRC will help manage commodity prices in coordination with other government bodies,” CSRC spokeswoman Gao Li told a media briefing.
The assurance comes after commodity prices touched record highs in recent weeks raising concerns in Beijing. Regulators have repeatedly pledged tougher inspections of physical and derivatives markets, and crackdowns on speculation and hoarding.
China Stocks Post Best Week in Three months on Easing Inflation Fears, Yuan Strength
China stocks slipped on Friday, but posted their best week in more than three months as inflation and policy tightening worries faded and strong Yuan boosted foreign inflows into the country’s equities market.
Hong Kong Stocks End Flat, Post Best Week in over Three Months
Hong Kong stocks ended flat on Friday, as gains in resources firms were offset by losses in tech and healthcare companies, but posted their best week in more than three months as inflation fears fade.
Traders attributed the week’s rally to easing worries over inflation as Beijing vowed to curb significant price gains in the commodities market.
South Korea Stocks Rise in Auto Strength, Upbeat US Data; Post 1% Weekly Gain
South Korean shares rose on Friday, logging their biggest weekly jump in three, led by tech heavyweights, as upbeat data from the United States supported recovery momentum.
South Korea’s May exports are expected to have risen at their quickest pace in over three decades, a Reuters poll showed, thanks to strong global demand for the nation’s major products – semiconductors, cars and petroleum products.
Foreigners were net buyers of 140.1 billion won ($125.62 million) worth of shares on the main board.
Australia Shares Close at Record High on Mining, Energy Boost
Australian shares settled more than 1% higher on Friday, posting their best week in seven, as mining and energy stocks tracked an uptick in commodity prices, while strong U.S. data boosted hopes of an economic recovery and lifted sentiment globally.
Metals and mining stocks jumped 2%, adding 1.6% for the week, as iron ore futures rose after China said it planned to curb steel output to meet its peak carbon emission target.
Energy stocks gained 1.7% as oil prices climbed on promising U.S. economic data and expectations of a strong rebound in global fuel demand in the third quarter.