Asian equity markets are all trading in positive territory in today’s morning session. Sentiment has been boosted by the Shanghai Composite, which jumped 1.4% to trade above the key psychological level of 2,000, buoyed by construction and cement stocks. However, we have seen no new fundamental news drive this.
In terms of data releases today, Australian Q3 GDP Q/Q missed expectations at 0.5% vs. Exp. 0.6%, which saw initial weakness in AUD/USD that was quickly pared one minute after. In regards to China, the Chinese HSBC services PMI for November printed a lower than previous number at 52.1 versus Previous 54.3. Following this release, Shanghai Composite and Hang Seng trended higher as HSBC’s China chief economist said that despite the moderating growth of services activities in November, services providers hired more workers and became more optimism on future outlook.
Elsewhere, ASX 200 retraced its early gains following Australia’s annual growth slowing to 3.1% in Q3 as a pullback in mining investment weighed on output. The stand out loser in the equity market has been the mining sector where we saw Sundance Resource trade down by 11.03% on the back of the Co.’s ongoing take-over issue with Hong Kong company Hanlong. In recent trade, the ASX 200 has benefited by the turnaround sentiment and trades around the session highs.
In the FX market, JPY weakness has been observed across the board due to the risk-on sentiment created by Shanghai Comp.
Looking ahead, the session is expected to remain light although Indian Service PMI is due to be released at 0500GMT/2300CST.
As of 0311GMT:
ASX200 (+0.32%), Nikkei 225 (+0.12%), Shanghai Comp. (+2.75%), Hang Seng (+1.19%), KOSPI (+0.56%)
Print 03:13, 05 Dec 2012 - Asian News - Source: RANsquawk
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