Reported by WSJ today that most Asian markets advanced Tuesday on continued hopes for policy easing from central banks and on some positive earnings reports, with Japanese and Hong Kong stocks among those clinching a fourth straight day of gains.
“People are still hopeful that there might be some stimulus” emerging from this week’s policy meetings of the Federal Reserve and the European Central Bank, said Andrew Sullivan, principal sales trader at Piper Jaffray.
South Korea led the region’s gains as the Kospi jumped 2.1% to 1881.99. Hong Kong’s Hang Seng Index climbed 1.1% to 19796.81, Japan’s Nikkei Stock Average rose 0.7% to 8695.06 and Australia’s S&P/ASX 200 Index climbed 0.6% to 4269.2. Each of the four was up for a fourth consecutive trading day.
Defying the regional trend for the second time this week, China’s Shanghai Composite Index dropped 0.3% to 2103.63, its lowest close since March 2009.
“The worrying thing is the number of profit warnings from Chinese companies,” said Mr. Sullivan. “They are really feeling the impact from the global slowdown.”
July was mixed month for regional markets. The Shanghai Composite was the worst performer among major benchmarks, dropping 5.5% for the month; second-worse was the Nikkei, down 3.5%.