Gains of up to around 2% for major Asian financial markets in intraday highs, with the Tokyo Stock Exchange Nikkei 225 closing the first session of the week of trading up around 1.8%.
In particular, the recovery of the Hong Kong stock exchange was in the spotlight, with the Hang Seng index leaping up to + 1.8%, after officially entering the bear market last week, down by more than 20% from the high of half. February.
The Tencent stock is highlighted, recovering by almost 3%. At the moment, the price list is up by about 1.5%.
The Seoul stock exchange also did well (+ 1.25%), in which however the crash of LG Chem stands out, collapsing by about 10%. On Friday, Detroit auto giant General Motors announced the expansion of the Chevrolet Bolt EV electric car recall, after spotting manufacturing defects in some battery cells made in LG’s factories.
In general, on global equities, there is great anticipation for the words that will be uttered by the number one of the Federal Reserve, Jerome Powell, on the occasion of the opening of the Jackson Hole symposium which, again this year, contrary to what was expected , will take place in virtual mode and not in person.
Powell will speak next Friday, August 27, at 10 am New York time (4 pm Italy time).
Strong rise in oil prices with Brent prices leaping up to + 1.73% in Asian trading
$ 66.31 per barrel, and WTI up 1.71% to $ 63.20 per barrel.
Regarding the forex, the Dollar Index travels around 93.313; the euro advanced 0.15% against the dollar to $ 1.1716, the dollar rose against the yen by 0.15% to JPY 109.96, but was significantly lower against the Canadian dollar, losing 0.43% to 1, 2765 Canadian dollars.
Returning to Asian equities, the Sydney stock market is weaker, with a rise of just 0.36%.
On the macro front, the Australian manufacturing SME index drawn up by Markit was released, which stood at 51.7 points in August, a marked deterioration compared to the previous 56.9 points. This is what emerges from the preliminary reading of the data, which disregarded the estimates, equal to 56.7 points.
The services sector is very bad and still in a phase of contraction, with the relative SME index down to 43.3 points from 44.2 points in July and compared to the estimated 44 points, discounting the new lockdowns that have been imposed in the country.
News from the coronavirus front in Australia continues to be negative: 818 new cases of Covid-19 infection have emerged in New South Wales in the last few hours, after thousands of protesters violated government-imposed restrictions taking to the streets and thus generating various cases of gatherings.
Preliminary numbers of the SME indices also spread in Japan: jointly drawn up by Jibun Bank-Markit, it reached 52.4 points in August, down from the previous 53 points. This is what emerges from the preliminary reading of the data, which disregarded the estimates, equal to 53.4 points.
The manufacturing PMI remained in any case above 50 points, the dividing line between the phase of contraction of economic activity – values below – and expansion – values above.
On the other hand, the SME services index confirmed its contraction, worsening from 47.4 points in July to 43.5 points. The concern remains on the service sector, the one most affected by the Covid-19 pandemic, which has contracted for the 19th consecutive month.