The week-long holiday in China that started on October 1 ended on October 8. Interestingly, mainland Chinese stocks saw gains on the day. For example, the Shanghai Composite added 1.68% to about 3’272.08. At the same time, the Shenzhen Component jumped 2.958% to around 13’289.26.
According to a private survey, services sector activity in China expanded in September. It is worth mentioning that, the Caixin/Markit services Purchasing Managers’ index for September came in at 54.8. As a reminder, the readings above 50 signify expansion, while the result below that level indicated contraction.
It is no secret that investors are closely monitoring the situation in the world’s second-largest economy. Moreover, thanks to Caixin/Markit services Purchasing Managers’ index it is possible to learn more about the situation.
Stocks in Asia on Friday
As stated above, mainland Chinese stocks strengthened their positions on Friday. However, Hong Kong’s Hang Seng index fell 0.31% to end its trading day at 24’119.13. Interestingly, shares of the biopharmaceutical startup Everest Medicines soared more than 30% from their issue price during their market debut in the city.
In Japan, the Nikkei 225 fell 0.12% to 23’619.69. In the meantime, the Topix index declined 0.49% to end its trading day at 1’647.38.
Australia’s S&P/ASX 200 ended its trading day flat at 6’102.20.
Importantly, markets in South Korea, as well as Taiwan, were closed on Friday for holidays.
It is worth noting that, investors mos likely also watched the situation in the U.S. It makes sense, as they would like to learn more regarding potential new fiscal stimulus in the U.S. On Thursday, the House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin discussed a broad coronavirus stimulus plan.
Lawmakers from both parties as well as the White House should work together to reach an agreement as soon as possible. It would be more difficult to boost the economy without another stimulus package.
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