Asian Stocks Gain as Japan, South Korea Overshadow China's LossBy
Topix rises to 16-month high; Kospi jumps to fresh record
China extends drop to fifth day amid deleveraging efforts
Most Asian stock markets rose as rallies in Japan and South Korea overshadowed a selloff that brought Chinese shares to the lowest level since October.
The MSCI Asia Pacific Index gained 1.4 percent as of 5:01 p.m. in Hong Kong, as the Topix surged to a 16-month high. Markets were bolstered after Friday’s U.S. jobs data and the pro-European Union candidate’s victory in French elections. The Kospi Index surged 2.3 percent, setting a fresh record ahead of that nation’s presidential vote. China was the exception among major markets with the Shanghai Composite Index declining for a fifth day amid the government’s effort to rein in financial leverage.
The jobs data in the U.S. signaled the labor market in the world’s largest economy remains healthy and should support continued increases in consumer spending. Emmanuel Macron won a commanding victory over the far-right Marie Le Pen. A nine-year conservative rule will end if South Korea’s left-leaning frontrunner Moon Jae-in wins the election tomorrow.
“Global markets are doing pretty well, because the French presidential election result eased investors’ concern and U.S. stocks also showed clear upward momentum,” said Ronald Wan, chief executive officer at Partners Capital International Ltd. He said China’s market has its own trend. “Under the current regulatory environment, no one dares to invest aggressively.”
- Hang Seng Index +0.4%, Hang Seng China Enterprises Index +0.6%
- Australia’s S&P/ASX 200 +0.6%
- Straits Times Index little changed, Kuala Lumpur Composite Index +0.3%
- India’s S&P BSE Sensex Index gained 0.3%