By MarketWatch, MarketWatch
Stocks in Asia moved higher early Tuesday, following through on Monday’s rally after U.S. stocks posted gains to start the week.
Japanese stocks rose with the Nikkei index /zigman2/quotes/210597971/delayed JP:NIK -0.23% up about 0.5% in early trading. Auto and financial stocks took the lead, thanks partly to the yen’s weakening and gains in Treasury yields overnight.
Honda Motor /zigman2/quotes/200490352/delayed JP:7267 +1.61% is up 2.3%, Dai-ichi Life Holdings /zigman2/quotes/208507587/delayed JP:8750 -0.13% is 1.9% higher, while SoftBank Group /zigman2/quotes/207303954/delayed JP:9984 +0.05% added 2.0%. The U.S. dollar/Japanese yen is at 105.70, up from 105.57 as of Monday’s Tokyo stock market close. Investors are focusing on policy developments from the U.S. and Japan.
Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI -0.47% was ahead 0.8%, in line with gains among broader Asian equities. Tech stocks are among the best performers, with Techtronic Industries /zigman2/quotes/204448177/delayed HK:669 -3.13% gaining 1.1%, AAC Technologies /zigman2/quotes/201441510/delayed HK:2018 -0.35% up 1.4% and Sunny Optical Technology /zigman2/quotes/206687505/delayed HK:2382 -1.05% adding 1.3%. Pharmaceutical stocks are also higher, with Sino Biopharmaceutical /zigman2/quotes/206921981/delayed HK:1177 -2.36% gaining 1.3% and CSPC Pharmaceutical /zigman2/quotes/200847219/delayed HK:1093 -1.43% up 0.7%. Among other stocks, Swire Pacific /zigman2/quotes/209399758/delayed HK:19 -0.62% rose 1.7% and Shenzhou International Group /zigman2/quotes/206654931/delayed HK:2313 -0.68% is 1.5% higher.
The Singapore FTSE Straits Times Index /zigman2/quotes/210597985/delayed SG:STI -0.03% is up 0.5% in early trade, tracking U.S. stocks which rose overnight on positive signs regarding President Trump’s health. Singapore’s economy is also likely to continue its gradual recovery, Commerzbank says. REITs are higher. Mapletree Commercial Trust /zigman2/quotes/201344447/delayed SG:M44U -1.09% gained 1.0%, Ascendas REIT /zigman2/quotes/201087398/delayed SG:CY6U -2.53% added 0.6% and CapitaLand Commercial Trust /zigman2/quotes/208644605/delayed SG:C31 +0.94% rose 1.2%. Among consumer stocks, Thai Beverage /zigman2/quotes/200043564/delayed SG:Y92 -0.68% was up 0.8%, Wilmar /zigman2/quotes/207345635/delayed SG:F34 -0.38% limbed 0.9% and Dairy Farm International /zigman2/quotes/204020912/delayed SG:D01 +1.40% rose 0.4%.
Malaysia’s stock benchmark Kuala Lumpur Composite Index /zigman2/quotes/210598052/delayed MY:FBMKLCI +1.19% is up 0.2%. Gainers include Dialog Group, /zigman2/quotes/201898285/delayed MY:7277 +0.62% which added 1.8% while casinos-to-plantations conglomerate Genting /zigman2/quotes/202788788/delayed MY:2291 +0.85% was 1.6% higher. Malayan Banking /zigman2/quotes/201753024/delayed MY:1155 +1.95% is up 0.7% while CIMB Group /zigman2/quotes/206600533/delayed MY:1023 +2.75% gained 0.3%. Among losers on the index is plantation company Sime Darby Plantation /zigman2/quotes/207614442/delayed MY:5285 0.00% , which is down 1.4%.
In Asian airline ratings, Qantas Airways /zigman2/quotes/205534063/delayed AU:QAN +0.39% is preferred by Goldman Sachs over Air New Zealand /zigman2/quotes/200916351/delayed NZ:AIR -0.32% for its exposure to the Australia-New Zealand aviation market. Goldman upgraded Qantas to buy from neutral while keeping Air New Zealand at sell.
The recovery in Australia’s domestic travel is still in its infancy and Qantas has greater flexibility in its business structure to profitably ride that recovery, Goldman Sachs says. An earnings recovery for Air New Zealand will be limited until international tourism resumes given its pre-Covid international capacity was about six times that of domestic, GS says.
South Korea’s headline inflation accelerated at a faster-than-expected pace to hit a six-month high in September. The benchmark consumer-price index gained 1.0% from a year earlier after rising 0.7% in August, said the statistical office Tuesday. The latest reading -- the highest since March’s 1.0% pace -- beat the median forecast of five economists polled by the Wall Street Journal for a 0.7% increase. The Bank of Korea expects the country’s inflation to average 0.4% this year--well below its 2% annual target.
South Korea’s stock benchmark Kospi /zigman2/quotes/210598069/delayed KR:180721 -0.57% is up 0.6% in early trade. Technology, retail and banking stocks lead gains including index heavyweight and tech giant Samsung Electronics /zigman2/quotes/209800866/delayed KR:005930 -0.36% , LG Electronics /zigman2/quotes/209966407/delayed KR:066570 +1.71% , food company CJ CheilJedang /zigman2/quotes/207211423/delayed KR:097950 -1.20% , retailer E-mart /zigman2/quotes/204983831/delayed KR:139480 -2.75% , and Hana Financial Group /zigman2/quotes/208370876/delayed KR:086790 -0.39% .
The story was compiled from Dow Jones Newswires and Associated Press reports.