How Stocks Reacted to Presidential Debate and Economic Data

On Wednesday, several factors affected stocks in the Asia Pacific, as investors reacted to the release of Chinese economic data. Moreover, the first U.S. presidential debate also dominated the headlines.

It is worth mentioning that, mainland Chinese stocks were mixed on the last day of September. For example, the Shanghai Composite dropped 0.2% to about 3’218.05 and the Shenzhen Component slightly rose to around 12’907.45.

Notably, Hong Kong’s Hang Seng index declined on Wednesday.

Moreover, Japanese stocks fell on the day. The Nikkei 225 fell 1.5% to close at 23’185.12. At the same time, the Topix index dropped 1.97% to finish its trading day at 1’625.49.

Australia’s S&P/ASX 200 declined 2.29% to end its trading day at 5’815.90.

As a reminder, markets in South Korea were closed on Wednesday for a holiday.

Stocks and various factors

It is no secret that Investors are closely monitoring the information that comes from China. People should take into account that the world’s second-largest economy continues to recover from the economic downturn caused by the coronavirus.

China’s official manufacturing Purchasing Managers’ Index (PMI) came in at 51.5 according to the country’s National Bureau of Statistics. Importantly, the official manufacturing PMI exceeded expectations.

Let’s have a look at the first U.S. presidential debate between incumbent President Donald Trump and Democratic nominee Joe Biden. The debate could also have affected investor sentiment. It makes sense as investors are monitoring the political climate in the country.

According to a private manufacturing survey also showed manufacturing activity expanding in September. As mentioned above, official manufacturing PMI exceeded expectations and the Caixin/Markit PMI came in at 53.0.

Importantly, investors also monitored shares of Japanese telecommunications firms. Nippon Telegraph and Telephone Corporation will take over its telecommunications unit, NTT Docomo.

Shares of NTT fell 3.61% on September 30 and shares of NTT Docomo jumped 20.92%.