|Day's range||26,372.09 - 26,820.73|
|52-week range||24,540.63 - 30,280.12|
The major Asia Pacific stock indexes are mostly higher in the wake of interest rate and policy decisions from the U.S. Federal Reserve and the Bank of Japan.
Crude oil prices plunged on Tuesday after the Saudi energy minister said the kingdom’s oil supply will soon be back online. The drop in crude oil prices spread weakness throughout the Asia Pacific region on Wednesday.
Just as the Fed is set to ponder an interest rate cut amid fears of a US slowdown, the People’s Bank of China has kept its one-year interest rate steady.
Global stock markets sank Monday after crude prices surged following an attack on Saudi Arabia's biggest oil processing facility. Market benchmarks in Europe dropped after Asian markets mostly closed lower, while Wall Street futures were down slightly. Benchmark U.S. crude jumped $4.64 per barrel to $59.49 following the attack on oil producer Saudi Aramco's Abqaiq facility for which Yemeni rebels claimed responsibility.
Chinese retail sales and investment gauges also worsened, reinforcing views that China is likely to cut some of its key interest rates this week for the first time in over three years to prevent a sharper slump in activity.
For the first time in CLSA’s 26 years of running the event — a vital mingling venue for Hong Kong’s financial elite — fund managers from companies representing a total of $30tn in assets flew in to find fires burning outside Tiffany’s and tear gas being fired near shoppers leaving the Sogo department store. Turnout for the investor conference was down 10 per cent from last year, organisers said. Do concerns over the rule of law and banners calling on US President Donald Trump to “liberate” Hong Kong compromise its status as a key financial centre?
World stock markets rose cautiously Thursday as investors awaited the European Central Bank's decision on how much stimulus it will provide the economy. Sentiment also was brightened by hopes that China and the U.S. are moving to ease trade tensions. Analysts say the ECB is likely to cut a key interest rate further below zero on Thursday and could take other steps, including restarting a bond-buying program to pump newly created money into the economy.
Hong Kong Exchanges and Clearing Limited (HKEX) said Wednesday it had made a proposal to the board of London Stock Exchange Group Plc (LSE) to “combine the two companies,” in a deal which values the (LSE) at about 29.6 billion Pounds or $36.6 billion.
HONG KONG/LONDON/NEW YORK (Reuters) - The London Stock Exchange's board will meet in coming days to decide on the Hong Kong bourse's surprise $39 billion takeover proposal, a source close to the British company said on Thursday, as the market poured cold water on the deal. The unsolicited takeover offer is not expected to succeed given a preference among LSE investors for the exchange to complete its $27 billion proposed acquisition of data and analytics group Refinitiv, the source close to the LSE said. The exchange wants to focus on executing that deal, rather than risk it being derailed by the Hong Kong bourse, the source said.
On Tuesday, Apple revealed launch dates and pricing for its much-anticipated Apple TV and Apple Arcade subscription services. Both services cost $4.99 per month, which undercuts competitors like Disney’s streaming platform, Disney+, and Google’s cloud gaming service, Stadia.
Rising CPI and falling PPI could raise a problem for policymakers since they are trying to stimulate the economy with lower interest rates. Lower rates could prop up the PPI, but they could also send the CPI higher, which could hurt the economy if it starts to run away from the benchmark.
Chinese state media attacks have helped to send the shares in Hong Kong-listed companies tumbling in recent weeks, with criticism of the territory’s flag carrier Cathay Pacific even claiming the scalps of its chief executive and chairman. Since the start of the year, net purchases of Hong Kong stocks by mainland Chinese investors — made through stock connect programmes with bourses in Shanghai and Shenzhen — had climbed to almost HK$160bn ($20bn) by market close on Friday, close to double net inflows of HK$82.7bn for all of 2018. The buying frenzy also comes despite a dismal year for Hong Kong stocks.
Chinese customs data showed the country’s exports unexpectedly fell in August, pointing to further weakness in the world’s second largest economy. Japan’s economy grew an annualized 1.3% in the April to June quarter, according to revised data from the Cabinet Office on Monday. That was lower than the initial estimate of a 1.8% expansion, but matched market expectations.
Consumer lender Home Credit is poised to offer the biggest test of Hong Kong's capital markets since China's Alibaba delayed plans for a $15 billion listing last month because of the political turmoil engulfing the city. The Prague-based lender, which has a sizeable Chinese business, could launch its initial public offering as soon as this month, and is seeking to raise more than $1 billion from the offering in the first of a series of significant IPOs planned in the city. Hong Kong's markets have been weakened by frequently violent pro-democracy protests and political turmoil over the past three months, slashing a 12% gain for the year to June on the blue-chip Hang Seng Index to a 3% positive performance by Monday.
Hong Kong's reputation as a dependable financial hub took a hit on Friday after Fitch downgraded the city's sovereign rating, citing ongoing protests and uncertainty caused by closer integration with the Chinese mainland. Millions of pro-democracy supporters have taken to Hong Kong's streets for the past three months in the biggest challenge to China's rule since the city's handover from Britain in 1997. The sometimes violent protests have heaped pressure on Hong Kong's economy, which had already been under pressure from the US-China trade war.
Hong Kong’s stock exchange has blamed a software bug for disruptions that forced it to suspend operations of its derivatives market on Thursday, as the bourse’s website came under an apparently separate hacking attack on Friday. “HKEX confirms that the software issues in the vendor-supplied trading system that caused the market outage yesterday have now been isolated,” the company said in a statement after trading resumed on Friday morning.
In Hong Kong, civil rights protesters forced China’s local fixers to abandon plans for an extradition bill. In the UK, dissident MPs from the ruling Conservative party helped derail plans for a no-deal Brexit. Here, brave protesters are determined to preserve freedoms President Xi Jinping’s authoritarian China would like to take away.
After the announcement of the resumption of trade talks between the United States and China in early October, the Australian and New Zealand Dollars rose on economic optimism and the Japanese Yen fell as investors shed safe-haven positions for more attractive higher-yielding currencies.
The Dollar/Yen is also being boosted by a surge in U.S. equity markets shortly before the cash market opening after a report showed growth in China’s services sector had expanded at its fastest rate in three months in August, despite broader economic headwinds.