Thu, 24 Oct 2019

Cyclical stocks lead surge on Asian markets

Oregon State News
15 Jan 2019, 16:59 GMT+10

SYDNEY, Australia - Stocks in Asia rose on Tuesday as investors bet the Chinese government would inject some stimulus into its slowing economy, following the announced drop in December exports and imports. Exports last month declined 4.4%, the lowest reading in two years.

Cyclicals led the upturn on Asian markets on Tuesday.

"It is interesting that cyclicals are leading the gains today. It appears some contrarian investors are starting to buy cyclicals, looking beyond the last economic slowdown," Nobuhiko Kuramochi, chief strategist at Mizuho Securities told the Reuters Thomson news agency. 

"But I would suspect there will be heavy selling if we go up further, to around 2,650 in the S&P500 and 21,500 in the Nikkei," Kuramochi said.

At the close of trading in Sydney on Tuesday, the All Ordinaries were ahead 38.60 points or 0.66% at 5,871.80.

The Nikkei 225 in Tokyo was up 195.59 points or 0.96% at the finish, with the key index last quoted at 20,555.29.

In China, the Shanghai Composite, closed up 34.58 points or 1.36% at 2,570.34.

In Hong Kong, the Hang Seng was up an impressive 531.95 points or 2.02% at 26,830.29.

Overnight on Wall Street, stocks closed lower, but losses were minor.

The U.S. shutdown which has now entered its fourth week with little hope of a resolution in sight, weighed on sentiment.

At the close of trading Monday, the Dow Jones industrials were off 86.11 points or 0.036% at 23,909.84.

The Standard and Poor's 500 lost 13.65 points or 0.53% to 2,582.61.

The tech-laden Nasdaq did worst, losing 65.56 points or 0.94% to close Monday at 6,905.92.

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