Asian Shares Finish Week Higher on Back of Trade Deal, Strong Chinese Industrial, Retail Data

The Shanghai Composite rallied last week as growth in China’s industrial and retail sectors beat expectations in November, as government support propped up demand in the world’s second-largest economy and amid easing trade hostilities with Washington.
James Hyerczyk
Asian Shares

Asia Pacific shares were mostly higher last week. After a slow start, the markets edged mostly higher throughout the week as investors followed Wall Street’s lead. Asian markets initially had a mixed reaction to news that China and the U.S. announced they were finally set to sign off on phase one trade agreement.

For the week, Japan’s Nikkei 225 Index settled at 23816.63, down 206.47 or -0.86%. South Korea’s KOSPI Index finished at 2204.18, up 33.93 or +1.56% and Hong Kong’s Hang Seng Index closed at 27871.35, up 183.59 or +0.66%.

China’s Shanghai Index settled at 3004.94, up 37.26 or +1.26% and Australia’s S&P/ASX 200 finished at 6816.30, up 76.60 or +1.14%.

China’s Factory, Retail Sectors Shine as Trade Tensions Ease

The Shanghai Composite rallied last week as growth in China’s industrial and retail sectors beat expectations in November, as government support propped up demand in the world’s second-largest economy and amid easing trade hostilities with Washington.

Industrial production rose 6.2% year-on-year in November, data from the National Bureau of Statistics showed, beating the median forecast of 5.0% growth in a Reuters poll and quickening from 4.7% in October. It was also the fastest year-on-year growth in five months.

Retail Sales rose 8.0% year-on-year in November, compared with an expected 7.6%, buoyed by stimulus measures and the November Singles Day shopping extravaganza, the statistics bureau said.

Aussie Shares Boosted by Chinese Reports, RBA Minutes, Jobs Data

Shares in Australia were mostly supported by the better-than-expected economic news out of China and the somewhat dovish Reserve Bank minutes, but dipped a little on stronger-than-expected jobs data.

Minutes from the Reserve Bank of Australia’s (RBA) December meeting, where the central bank opted to leave the cash rate unchanged at 0.75%, showed it was “prepared to ease monetary policy further if needed.” Lower rates tend to boost stocks.

Australian jobs data for November released Thursday showed a 39,900 seasonally adjusted rise in jobs, far higher than expectations of a 14,000 increase by a Reuters poll. The seasonally adjusted unemployment rate also came in lower than expected at 5.2%, as compared to a 5.3% forecast by a Reuters poll. Stocks dipped a little on the news because it trimmed the chances of an RBA rate cut in February.

BOJ Decision, NAFTA Pressure Japanese Shares

Shares in Japan were lower after the Bank of Japan (BOJ) kept monetary policy steady and the U.S. House of Representatives passed a new North American trade deal.

In its statement, the BOJ said:  “Japan’s economy is likely to continue on a moderate expanding trend, as the impact of the slowdown in overseas economies on domestic demand is expected to be limited, although the economy is likely to continue to be affected by the slowdown for the time being.”

Japanese auto shares took a tumble in response to the new North American trade deal. The new deal included a requirement that 75% of auto parts come from North America, up from the previous 62.5% required by the previous NAFTA.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.