Market Update
S&P 500 and Nasdaq Soars 2% as Trump Secures Return to White House
Barry Adams
06 Nov, 2024
New York City
Stock market indexes soared after former president Donald Trump secured a return to the White House in the U.S. presidential election.
The S&P 500 index increased 2.0%, the Nasdaq Composite advanced 2.1%, and the U.S. dollar advanced against all major currencies.
Former president Donald Trump defeated his democratic opponent Kamala Harris in a hotly contested presidential election as a Republican wave swept the nation and the congressional election.
Donald Trump is expected to secure 276 Electoral College votes, more than the minimum 270 needed to win the presidential election, including wins in key swing states of North Carolina, Pennsylvania, Georgia, and Wisconsin.
The control of the U.S. Senate also switched to the Republican Party, while the control of the House is still undecided.
Companies seen as beneficiaries under the Trump presidency soared in early trading, and Tesla advanced as much as 13%.
Cryptocurrency-linked stocks also soared, and Bitcoin jumped to a record high of $75,000 in the hopes that the relaxed regulation could benefit the sector.
The U.S. dollar advanced against all major currencies on speculation that Trump's proposed tariffs against major trading partners, including China, the European Union, and Mexico, could boost the currency.
The 10-year Treasury yield jumped to 4.43% on the assumption that the proposed spending plan by Trump would reignite inflationary pressures and may force the Federal Reserve to keep higher interests for longer.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 2.0% to 5,901.45, the Nasdaq Composite rose 2.1% to 18,832.39, and the Russell 2000 index rose 1.9% to 2,260.84.
The yield on 2-year Treasury notes edged higher to 4.27%, 10-year Treasury notes inched higher to 4.45%, and 30-year Treasury bonds increased to 4.61%.
WTI crude oil decreased $1.47 to $70.51 a barrel, and natural gas prices edged up 2 cents to $2.69 a thermal unit.
Gold decreased by $55.24 to $2,691.09 an ounce, and silver declined by $1.55 to $31.55.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 105.42.
U.S. Stock Movers
Banks traded higher as investors speculated that the large and medium-sized banks are likely to benefit from Trump's economic policies.
JPMorgan Chase jumped 5.2% to $233.15, Wells Fargo advanced 8.4% to $69.44, Citigroup increased 7.2% to $68.59, and Regions Financial edged higher 7.2% to $25.31.
Discount retailers fell on the worry that the new administration would impose universal tariffs on all imported goods and 60% tariffs on imports from China.
Dollar Tree declined 2.2% to $65.30, Dollar General fell 1.2% to $80.58, and Five Below plunged 10.8% to $84.0.
Cryptocurrency-linked stocks soared after Bitcoin jumped to a record high of $75,000.
MicroStrategy Inc. soared 10% to $252.80, MARA Holding advanced 8.2% to $17.57, and Riot Platforms jumped 7.3% to $10.44.
Europe Movers: BMW, Credit Agricole, Marks & Spencer, Puma, Siemens Healthineers, TeamViewer
Inga Muller
06 Nov, 2024
Frankfurt
The return of Donald Trump to the White House may prove to be mixed blessings for the European Union, as his administration will demand more payment for the support of NATO, erect trade barriers for goods from the region, and push to end the war in Ukraine.
The DAX index increased by 0.9% to 19,430.32; the CAC-40 index rose by 1.4% to 7,512.89; and the FTSE 100 index rose by 1.2% to 8,270.27.
The yield on 10-year German bonds edged lower to 2.36%, French bonds inched lower to 3.11%, the UK gilts edged higher to 4.51%, and Italian bonds decreased to 3.62%.
Credit Agricole SA declined 5.7% to €13.49 after the French bank reported mixed quarterly results as record revenue in its investment banking unit overshadowed weakness in its retail business.
Puma SE dropped 5.7% to €40.0 after the German footwear company reported lower-than-expected sales in the third quarter.
BMW AG declined 6.8% to €67.66, and the German luxury automaker reported third quarter net income plunged 61%.
Siemens Healthineers rose 6.6% to €51.58 after the German media technology company reported financial results that matched investor expectations.
Marks & Spencer Group increased 4.4% to 400.70 pence after the UK-based retailer reported higher-than-expected profit in the first half.
TeamViewer SE dropped 14% to €11.55 after the software company trimmed its revenue outlook.
Revenue in the third quarter increased 7% to €168.7 million from €158.1 million operating earnings increased 44% to €65 million from €45.3 million, and earnings per share rose to 25 cents from 16 cents a year ago.
The company narrowed the 2024 revenue range to between €662 million and €668 million, and adjusted EBITDA margin of at least 44% compared to the previous estimate of 43%.
Europe Movers: BMW, Credit Agricole, Marks & Spencer, Puma, Siemens Healthineers, TeamViewer
Inga Muller
06 Nov, 2024
Frankfurt
The return of Donald Trump to the White House may prove to be mixed blessings for the European Union, as his administration will demand more payment for the support of NATO, erect trade barriers for goods from the region, and push to end the war in Ukraine.
The DAX index increased by 0.9% to 19,430.32; the CAC-40 index rose by 1.4% to 7,512.89; and the FTSE 100 index rose by 1.2% to 8,270.27.
The yield on 10-year German bonds edged lower to 2.36%, French bonds inched lower to 3.11%, the UK gilts edged higher to 4.51%, and Italian bonds decreased to 3.62%.
Credit Agricole SA declined 5.7% to €13.49 after the French bank reported mixed quarterly results as record revenue in its investment banking unit overshadowed weakness in its retail business.
Puma SE dropped 5.7% to €40.0 after the German footwear company reported lower-than-expected sales in the third quarter.
BMW AG declined 6.8% to €67.66, and the German luxury automaker reported third quarter net income plunged 61%.
Siemens Healthineers rose 6.6% to €51.58 after the German media technology company reported financial results that matched investor expectations.
Marks & Spencer Group increased 4.4% to 400.70 pence after the UK-based retailer reported higher-than-expected profit in the first half.
TeamViewer SE dropped 14% to €11.55 after the software company trimmed its revenue outlook.
Revenue in the third quarter increased 7% to €168.7 million from €158.1 million operating earnings increased 44% to €65 million from €45.3 million, and earnings per share rose to 25 cents from 16 cents a year ago.
The company narrowed the 2024 revenue range to between €662 million and €668 million, and adjusted EBITDA margin of at least 44% compared to the previous estimate of 43%.
Trump's Return to White House May Pose Multiple Challenges for the EU, European Markets Advanced 1%
Bridgette Randall
06 Nov, 2024
London
European markets advanced and bond yields edged lower as investors reviewed the latest batch of earnings and economic releases.
Benchmark indexes in Paris, Milan, Frankfurt, and London advanced, and the former U.S. president Donald Trump was presumed to be the winner of the latest U.S. presidential election.
Trump's win may prove to be trickier for European businesses and politicians, as the new administration is likely to ramp up trade barriers and push European nations to pay a higher share of the NATO budget.
The Trump administration is also likely to impose new trade barriers with the European Union and demand member nations import more from the world's largest economy and lower persistent trade surpluses.
On the economic front, Germany's factory orders rebounded at a faster-than-expected pace in September after demand for military vehicles, aircraft, ships, and trains soared 117.1%.
Automotive orders increased 2.9%, but the metal production and processing sector declined 10%, and mechanical engineering fell 3.6%.
Factory orders increased 4.2% from the previous month and advanced 1% from a year ago in September, following a downwardly revised 5.4% decrease in the previous month.
Excluding large orders, incoming orders rose 2.2% from the previous month.
Europe Indexes and Yields
The DAX index increased by 0.9% to 19,430.32; the CAC-40 index rose by 1.4% to 7,512.89; and the FTSE 100 index rose by 1.2% to 8,270.27.
The yield on 10-year German bonds edged lower to 2.36%, French bonds inched lower to 3.11%, the UK gilts edged higher to 4.51%, and Italian bonds decreased to 3.62%.
The euro edged higher to $1.07; the British pound inched higher to $1.29; and the U.S. dollar weakened to 87.57 Swiss cents.
Brent crude decreased $0.92 to $74.60 a barrel, and the Dutch TTF natural gas rose by €1.12 to €39.40 per MWh.
Europe Stock Movers
Credit Agricole SA declined 5.7% to €13.49 after the French bank reported mixed quarterly results as record revenue in its investment banking unit overshadowed weakness in its retail business.
Puma SE dropped 5.7% to €40.0 after the German footwear company reported lower-than-expected sales in the third quarter.
BMW AG declined 6.8% to €67.66, and the German luxury automaker reported third quarter net income plunged 61%.
Siemens Healthineers rose 6.6% to €51.58 after the German media technology company reported financial results that matched investor expectations.
Marks & Spencer Group increased 4.4% to 400.70 pence after the UK-based retailer reported higher-than-expected profit in the first half.
Trump's Return to White House May Pose More Problems for the European Union, European Markets Advanced 1%
Bridgette Randall
06 Nov, 2024
London
European markets advanced and bond yields edged lower as investors reviewed the latest batch of earnings and economic releases.
Benchmark indexes in Paris, Milan, Frankfurt, and London advanced, and the former U.S. president Donald Trump was presumed to be the winner of the latest U.S. presidential election.
Trump's win may prove to be trickier for European businesses and politicians, as the new administration is likely to ramp up trade barriers and push European nations to pay a higher share of the NATO budget.
The Trump administration is also likely to impose new trade barriers with the European Union and demand member nations import more from the world's largest economy and lower persistent trade surpluses.
On the economic front, Germany's factory orders rebounded at a faster-than-expected pace in September after demand for military vehicles, aircraft, ships, and trains soared 117.1%.
Automotive orders increased 2.9%, but the metal production and processing sector declined 10%, and mechanical engineering fell 3.6%.
Factory orders increased 4.2% from the previous month and advanced 1% from a year ago in September, following a downwardly revised 5.4% decrease in the previous month.
Excluding large orders, incoming orders rose 2.2% from the previous month.
Europe Indexes and Yields
The DAX index increased by 0.9% to 19,430.32; the CAC-40 index rose by 1.4% to 7,512.89; and the FTSE 100 index rose by 1.2% to 8,270.27.
The yield on 10-year German bonds edged lower to 2.36%, French bonds inched lower to 3.11%, the UK gilts edged higher to 4.51%, and Italian bonds decreased to 3.62%.
The euro edged higher to $1.07; the British pound inched higher to $1.29; and the U.S. dollar weakened to 87.57 Swiss cents.
Brent crude decreased $0.92 to $74.60 a barrel, and the Dutch TTF natural gas rose by €1.12 to €39.40 per MWh.
Europe Stock Movers
Credit Agricole SA declined 5.7% to €13.49 after the French bank reported mixed quarterly results as record revenue in its investment banking unit overshadowed weakness in its retail business.
Puma SE dropped 5.7% to €40.0 after the German footwear company reported lower-than-expected sales in the third quarter.
BMW AG declined 6.8% to €67.66, and the German luxury automaker reported third quarter net income plunged 61%.
Siemens Healthineers rose 6.6% to €51.58 after the German media technology company reported financial results that matched investor expectations.
Marks & Spencer Group increased 4.4% to 400.70 pence after the UK-based retailer reported higher-than-expected profit in the first half.
Japan Indexes Extended 2-Day Rally; IHI Soared 20%, Mecari Plunged 16%
Akira Ito
06 Nov, 2024
Tokyo
Stock market indexes in Tokyo advanced for the second day in a row as investors attempted to decipher possible impacts of Donald Trump's win in the U.S. presidential election.
The Nikkei 225 stock average soared 2.6% and the broader Topix index added 1.9% as investors reviewed the sentiment index among large businesses.
Donald Trump's administration is likely to impose higher tariffs on goods imported from Asia and China and also raise trade barriers that could negatively impact Japanese corporations.
Moreover, Japanese politicians may face demand from the Trump administration to bear a larger financial burden of security arrangements to defend the nation from aggression from China, Russia, or North Korea.
On the economic front, the Reuters Tankan sentiment index for Japan's manufacturers eased to +5 in November from +7 in October.
The sentiment weakened amid growing worries over the economic slowdown in China and rising domestic inflationary pressures.
Japan's service sector activity index was revised higher in October, indicating that the contraction was less severe than previously estimated.
Services PMI was revised to 49.7 in October from the preliminary estimate of 49.3, and the index declined for the first time since June amid renewed pressures on export orders.
The Bank of Japan's latest policy meeting minutes showed that most committee members were in agreement in continuing to raise rates, and inflation and economic conditions align with the central bank's goals.
However, most members preferred to raise rates gradually according to the minutes of the September 19-20 monetary policy meeting.
Japan Stock Movers
The Nikkei 225 Stock Average jumped 2.6% to 39,480.67, and the broader Topix index added 1.9% to 2,715.92.
Mercari Inc. plunged 16% to ¥1,824.0 after the e-commerce company reported weaker-than-expected quarterly results.
Revenue in the September quarter increased 1.5% to 44.9 billion yen from 44.3 billion yen, net income rose 7.9% to 3.04 billion yen from 2.8 billion yen, and diluted earnings per share rose to 17.44 yen from 16.54 a year ago.
The company estimated revenue in the fiscal year 2025 ending in June between 200 billion and 210 billion yen, an increase between 6.7% and 12.1%.
The company guided annual core operating profit between 22 billion and 25 billion yen, an increase between 16.6% and 32.5%.
IHI Corp. soared 19.1% to ¥9,280.0 after the heavy-duty engineering company reported its financial results and raised its dividend and profit outlook for the current year.
Consolidated revenue in the six months ended September rose 61.1% to 757.5 billion yen from 470.31 billion yen, net income swung to a profit of 40.9 billion from a loss of 135.6 billion yen, and diluted earnings per share were 259.69 yen compared to a loss of 909.25 yen.
The company estimated full-year revenue to increase 21% to 1.6 trillion yen, profit attributable to shareholders to rise to 85 billion yen, and basic earnings per share of 559.55 yen.
The company estimated the full-year dividend to increase to 120 yen from 100 yen in the previous year.
Japan Indexes Advanced; IHI Soars 20% After Dividend Hike, Mecari Plunged 16% Following Weak Sales Growth
Akira Ito
06 Nov, 2024
Tokyo
Stock market indexes in Tokyo advanced for the second day in a row as investors attempted to decipher possible impacts of Donald Trump's win in the U.S. presidential election.
The Nikkei 225 stock average soared 2.6% and the broader Topix index added 1.9% as investors reviewed the sentiment index among large businesses.
Donald Trump's administration is likely to impose higher tariffs on goods imported from Asia and China and also raise trade barriers that could negatively impact Japanese corporations.
Moreover, Japanese politicians may face demand from the Trump administration to bear a larger financial burden of security arrangements to defend the nation from aggression from China, Russia, or North Korea.
On the economic front, the Reuters Tankan sentiment index for Japan's manufacturers eased to +5 in November from +7 in October.
The sentiment weakened amid growing worries over the economic slowdown in China and rising domestic inflationary pressures.
Japan's service sector activity index was revised higher in October, indicating that the contraction was less severe than previously estimated.
Services PMI was revised to 49.7 in October from the preliminary estimate of 49.3, and the index declined for the first time since June amid renewed pressures on export orders.
The Bank of Japan's latest policy meeting minutes showed that most committee members were in agreement in continuing to raise rates, and inflation and economic conditions align with the central bank's goals.
However, most members preferred to raise rates gradually according to the minutes of the September 19-20 monetary policy meeting.
Japan Stock Movers
The Nikkei 225 Stock Average jumped 2.6% to 39,480.67, and the broader Topix index added 1.9% to 2,715.92.
Mercari Inc. plunged 16% to ¥1,824.0 after the e-commerce company reported weaker-than-expected quarterly results.
Revenue in the September quarter increased 1.5% to 44.9 billion yen from 44.3 billion yen, net income rose 7.9% to 3.04 billion yen from 2.8 billion yen, and diluted earnings per share rose to 17.44 yen from 16.54 a year ago.
The company estimated revenue in the fiscal year 2025 ending in June between 200 billion and 210 billion yen, an increase between 6.7% and 12.1%.
The company guided annual core operating profit between 22 billion and 25 billion yen, an increase between 16.6% and 32.5%.
IHI Corp. soared 19.1% to ¥9,280.0 after the heavy-duty engineering company reported its financial results and raised its dividend and profit outlook for the current year.
Consolidated revenue in the six months ended September rose 61.1% to 757.5 billion yen from 470.31 billion yen, net income swung to a profit of 40.9 billion from a loss of 135.6 billion yen, and diluted earnings per share were 259.69 yen compared to a loss of 909.25 yen.
The company estimated full-year revenue to increase 21% to 1.6 trillion yen, profit attributable to shareholders to rise to 85 billion yen, and basic earnings per share of 559.55 yen.
The company estimated the full-year dividend to increase to 120 yen from 100 yen in the previous year.
Hong Kong Stocks Drop 2% as Goods from China Face Higher Tariffs Under Trump Administration
Li Chen
06 Nov, 2024
Hong Kong
Stock market indexes in China and Hong Kong traded volatile as the U.S. presidential election results rolled in.
The Hang Seng index dropped 2% and the mainland-focused CSI 300 index advanced a fraction as investors attempted to understand broad implications of the U.S. election results.
Vice President Kamala Harris is trailing in the key battleground states of Michigan, Wisconsin, and Pennsylvania, which could tip the election in favor of former president Donald Trump.
Regardless of who wins the White House and control of the U.S. Congress, China's exports are likely to face higher tariffs and additional trade barriers for goods shipped routed through Vietnam and Mexico.
The Hang Seng index has advanced 27% between the announcement of stimulus measures on September 11 and October 7, but the market index has lost about 9% since then.
The Standing Committee of the People's National Congress is set to approve raising the government debt ceiling, which will pave the way for the previously announced fiscal measures to support local government finances.
China Stock Movers
The Hang Seng index declined 2% to 20,588.66, and the CSI 300 index increased 0.2% to 4,051.35.
Tech stocks traded down in Hong Kong amid a broad selloff in Chinese stocks.
Alibaba Group declined 3.4% to HK $95.10, JD.com fell 3.9% to HK $152.50, and Tencent Holdings fell 1.7% to HK $420.40.
Hong Kong Stocks Drop 2% as China Faces Higher Tariffs Under Trump Administration
Li Chen
06 Nov, 2024
Hong Kong
Stock market indexes in China and Hong Kong traded volatile as the U.S. presidential election results rolled in.
The Hang Seng index dropped 2% and the mainland-focused CSI 300 index advanced a fraction as investors attempted to understand broad implications of the U.S. election results.
Vice President Kamala Harris is trailing in the key battleground states of Michigan, Wisconsin, and Pennsylvania, which could tip the election in favor of former president Donald Trump.
Regardless of who wins the White House and control of the U.S. Congress, China's exports are likely to face higher tariffs and additional trade barriers for goods shipped routed through Vietnam and Mexico.
The Hang Seng index has advanced 27% between the announcement of stimulus measures on September 11 and October 7, but the market index has lost about 9% since then.
The Standing Committee of the People's National Congress is set to approve raising the government debt ceiling, which will pave the way for the previously announced fiscal measures to support local government finances.
China Stock Movers
The Hang Seng index declined 2% to 20,588.66, and the CSI 300 index increased 0.2% to 4,051.35.
Tech stocks traded down in Hong Kong amid a broad selloff in Chinese stocks.
Alibaba Group declined 3.4% to HK $95.10, JD.com fell 3.9% to HK $152.50, and Tencent Holdings fell 1.7% to HK $420.40.
India Movers: Berger Paints, GAIL India, JK Tyres, Oil India, Sundram Fasteners
Arun Goswami
06 Nov, 2024
Mumbai
Dalal Street indexes rebounded as investors reviewed another batch of mixed quarterly results.
The Sensex and Nifty indexes are still down 6% from the peak on September 16.
The Sensex index increased by 0.7% to 80,032.28, and the Nifty index rose by 0.7% to 24,377.85.
On the Mumbai stock exchange, 179 stocks traded at their 52-week highs, and 9 stocks traded at their 52-week lows.
JK Tyre & Industries declined 2.7% to ₹378.65 after the company reported a decline in revenue and profit in the September quarter.
Revenue fell 7% to ₹3,622 crore, and net profit plunged 44% to ₹135 crore from a year ago, respectively.
The company's quarterly results were negatively impacted by the rising rubber cost and falling sales.
Gail India increased 5.5% to ₹207.20 after the natural gas company reported higher sales and earnings in the September quarter.
Revenue from operations increased 2.8% to ₹33,981.3 crore, and net income advanced 10.2% to ₹2,693.5 crore from a year ago, respectively.
Berger Paints India advanced 0.9% to ₹517.85 after the company reported fiscal second quarter results.
Revenue in the September quarter increased 0.3% to ₹2,775 crore, and net income decreased 7.5% to ₹270 crore amid soft demand in the urban areas.
Oil India jumped 3% to ₹510.65 after the company reported mixed quarterly results.
Revenue in the September quarter decreased 7.7% to ₹8,135.9 crore, and net income soared nearly fourfold to ₹2,016.2 crore from a year ago, respectively.
Sundram Fasteners decreased 0.6% to ₹1,341.70 after the company reported muted quarterly results in the September quarter.
Revenue from operations in the fiscal second quarter increased 4.5% to ₹1,486 crore from ₹1,421.8 crore, net income increased 8% to ₹143.8 crore from ₹133.05 crore, and diluted earnings per share advanced to ₹6.78 from ₹6.28 a year ago.
The company said strong export sales supported the rise in revenue in the quarter.
The company declared a cash dividend of ₹3 per share payable on December 3 to shareholders on record on November 18.
India Movers: Berger Paints, GAIL India, JK Tyres, Oil India, Sundram Fasteners
Arun Goswami
06 Nov, 2024
Mumbai
Dalal Street indexes rebounded as investors reviewed another batch of mixed quarterly results.
The Sensex and Nifty indexes are still down 6% from the peak on September 16.
The Sensex index increased by 0.7% to 80,032.28, and the Nifty index rose by 0.7% to 24,377.85.
On the Mumbai stock exchange, 179 stocks traded at their 52-week highs, and 9 stocks traded at their 52-week lows.
JK Tyre & Industries declined 2.7% to ₹378.65 after the company reported a decline in revenue and profit in the September quarter.
Revenue fell 7% to ₹3,622 crore, and net profit plunged 44% to ₹135 crore from a year ago, respectively.
The company's quarterly results were negatively impacted by the rising rubber cost and falling sales.
Gail India increased 5.5% to ₹207.20 after the natural gas company reported higher sales and earnings in the September quarter.
Revenue from operations increased 2.8% to ₹33,981.3 crore, and net income advanced 10.2% to ₹2,693.5 crore from a year ago, respectively.
Berger Paints India advanced 0.9% to ₹517.85 after the company reported fiscal second quarter results.
Revenue in the September quarter increased 0.3% to ₹2,775 crore, and net income decreased 7.5% to ₹270 crore amid soft demand in the urban areas.
Oil India jumped 3% to ₹510.65 after the company reported mixed quarterly results.
Revenue in the September quarter decreased 7.7% to ₹8,135.9 crore, and net income soared nearly fourfold to ₹2,016.2 crore from a year ago, respectively.
Sundram Fasteners decreased 0.6% to ₹1,341.70 after the company reported muted quarterly results in the September quarter.
Revenue from operations in the fiscal second quarter increased 4.5% to ₹1,486 crore from ₹1,421.8 crore, net income increased 8% to ₹143.8 crore from ₹133.05 crore, and diluted earnings per share advanced to ₹6.78 from ₹6.28 a year ago.
The company said strong export sales supported the rise in revenue in the quarter.
The company declared a cash dividend of ₹3 per share payable on December 3 to shareholders on record on November 18.
U.S. International Trade Gap Expands to a 28-Month High In September
Brian Turner
05 Nov, 2024
Washington, D.C.
International goods and service trade deficit increased to $84.4 billion in September from $62.2 billion, the Bureau of Economic Analysis reported Tuesday.
Exports increased 2.2% to $267.9 billion and impots rose 9.5% to $352.2 billion from $323.8 billion a year ago, respectively.
Exports declined after reaching record high in August as shipment of civilian aircrafts, pharmaceutical preparations, and crude oil decreased.
The increase in Imports was driven by the higher demand passenger cars, computers and semiconductors, and pharmaceutical preparations.
Trade deficit widened a whopping 35% to $84.4 billion from $62.2 billion a year ago.
The September increase in the goods and services deficit reflected an increase in the goods deficit of $14.2 billion to $109.0 billion and an increase in the services surplus of $0.6 billion to $24.6 billion.
Goods trade deficit with the European Union increased by $4.7 billion to $23.8 billion, with China increased by $2.2 billion to $26.9 billion, with Mexico by $1.7 billion to $16 billion, and with Vietnam rose by $2.5 billion to $112.2 billion.
U.S. International Trade Gap Expands to a 28-Month High In September
Brian Turner
05 Nov, 2024
Washington, D.C.
International goods and service trade deficit increased to $84.4 billion in September from $62.2 billion, the Bureau of Economic Analysis reported Tuesday.
Exports increased 2.2% to $267.9 billion and impots rose 9.5% to $352.2 billion from $323.8 billion a year ago, respectively.
Exports declined after reaching record high in August as shipment of civilian aircrafts, pharmaceutical preparations, and crude oil decreased.
The increase in Imports was driven by the higher demand passenger cars, computers and semiconductors, and pharmaceutical preparations.
Trade deficit widened a whopping 35% to $84.4 billion from $62.2 billion a year ago.
The September increase in the goods and services deficit reflected an increase in the goods deficit of $14.2 billion to $109.0 billion and an increase in the services surplus of $0.6 billion to $24.6 billion.
Goods trade deficit with the European Union increased by $4.7 billion to $23.8 billion, with China increased by $2.2 billion to $26.9 billion, with Mexico by $1.7 billion to $16 billion, and with Vietnam rose by $2.5 billion to $112.2 billion.
S&P 500 and Nasdaq Jump 1% as Global Investors Await U.S. Election Results
Alexander Garcia
05 Nov, 2024
Miami
Wall Street indexes jumped more than 1% as voters lined up for the final day of voting in a closely contested presidential and congressional election.
The S&P 500 index and the Nasdaq Composite edged higher by more than 1% as investors reviewed another batch of corporate results.
The election results are likely to have significant effects on future government spending, individual and corporate tax levels, healthcare insurance affordability, funding of war in Ukraine, immigration policy, and trade barriers on goods imported from China.
Vice President Kamala Harris and former President Donald Trump avoided debating the serious issues confronting the U.S. economy: rapidly rising national debt, growing income inequality, and deteriorating international competitiveness.
About 82 million voters have cast their ballots as of Monday, representing over half of the votes cast in the 2020 presidential election, according to the Associated Press.
About 66% of the eligible voters, totaling 159 million, cast their ballots in the U.S. presidential election in 2020, the highest rate for any national election since 1900.
In addition to elections, the U.S. Federal Reserve is expected to announce its rate decisions on Thursday, and traders are divided about the possible rate cut of 25 basis points.
On the economic front, international goods and service trade deficit increased to $84.4 billion in September from $62.2 billion, the Bureau of Economic Analysis reported Tuesday.
Exports increased 2.2% to $267.9 billion and impots rose 9.5% to $352.2 billion from $323.8 billion a year ago, respectively.
Trade deficit widened a whopping 35% to $84.4 billion from $62.2 billion a year ago.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 1.1% to 5,776.60, the Nasdaq Composite rose 1.4% to 18,439.93, and the Russell 2000 index rose 1.0% to 2,241.76.
The yield on 2-year Treasury notes edged higher to 4.20%, 10-year Treasury notes inched higher to 4.33%, and 30-year Treasury bonds increased to 4.51%.
WTI crude oil increased $1.05 to $72.51 a barrel, and natural gas prices edged down 6 cents to $2.71 a thermal unit.
Gold increased by $6.53 to $2,742.52 an ounce, and silver increased by $0.30 to $32.70.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 103.75.
U.S. Stock Movers
Restaurant Brands International declined 2.2% to $68.50 after the parent of Burger King reported mixed quarterly results.
Palantir Technologies increased 15.4% to $47.72 after the software company and defense contractor reported higher than expected quarterly results.
NXP Semiconductors dropped 5% to $224.50 after the advanced chip maker estimated weaker-than-expected fourth quarter revenue, citing macroeconomic weakness in the U.S. and Europe.
Wynn Resorts decreased 2% to $93.64 after the casino operator reported weaker-than-expected revenue and earnings in the third quarter.
Boeing Company increased 1.8% to $157.90 after the striking workers agreed to accept the 38% pay hike over four years and ratification and productivity bonuses.
The vote ends the 53-day strike that crippled the aviation company and resumes the much-needed cash.
About 33,000 workers are set to resume work after 59% of union members voting members accepted the company's third formal offer.
Yum Brands increased 0.1% to $133.0 after the parent company of Pizza Hut and KFC reported weaker-than-expected quarterly results.
Same-store sales at both KFC and Pizza Hut declined 4%.
European Markets Struggled to Advance, Spain's Jobless Count Edged Higher
European markets traded around the flatline as investors reviewed another batch of quarterly results and awaited rate decisions this week.
Benchmark indexes in Paris, Milan, Frankfurt, and London lacked direction after a fresh batch of mixed earnings.
Investors are also awaiting rate decisions from central banks of the U.S., U.K., Sweden, and Norway later in the week.
The U.S. Federal Reserve and the Bank of England are likely to lower their key lending rates by 25 basis points after policy meetings on Thursday.
Moreover, investors are also awaiting the results of the U.S. presidential and congressional elections, which could impact the future funding of the NATO and trade relations between the U.S. and the eurozone.
Spain Jobless Count Advanced In October
The number of people registered as jobless increased by 26,769 from the previous month to 2.602 million in October, the lowest number for this month since 2007, according to the ministry of employment and social security.
On an annual basis, the number of unemployed declined by 157,350, or about 5.7%, from a year ago and fell at the fastest pace since September 2023.
Registered unemployment increased in all 17 autonomous communities, with the largest increases in Andalusia (7,723), Castilla-La Mancha (3,859), and Catalonia (2,909).
Unemployment among young people under 25 years of age rose in October by 8,361 people compared to the previous month.
France's Industrial Output Declined In September
France's industrial output declined 0.9% from the previous month in September, following the downwardly revised 1.1% increase in August, France's statistical agency INSEE reported on Tuesday.
Industrial activity declined for the first time since May, driven by a fall in manufacturing activities by 0.8%, in mining, energy, water supply, and waste management by 1.2%, and in construction activities by 0.3%.
On an annual basis, industrial output declined 0.6%.
Europe Indexes and Yields
The DAX index increased by 0.5% to 19,256.27; the CAC-40 index rose by 0.5% to 7,407.15; and the FTSE 100 index fell by 0.1% to 8,172.39.
The yield on 10-year German bonds edged higher to 2.42%, French bonds inched higher to 3.16%, the UK gilts edged higher to 4.49%, and Italian bonds decreased to 3.70%.
The euro edged higher to $1.09; the British pound inched higher to $1.29; and the U.S. dollar weakened to 86.19 Swiss cents.
Brent crude increased $0.96 to $76.06 a barrel, and the Dutch TTF natural gas rose by €0.08 to €40.40 per MWh.
Europe Stock Movers
Vestas Wind Systems declined 8.8% to DKK 124.0 after the wind turbine company lowered its estimate of operating earnings before special charges to €450 million from €500 million.
Adecco Group declined 10.5% to CHF 24.14 after the Swiss staffing company reported third quarter results that lagged market expectations.
Revenue in the third quarter declined 4% to €5.7 billion and net income fell 4% to €99 million from a year ago, respectively.
The temporary and permanent staffing services provider said market conditions are challenging in France and the United States.
"Macroeconomic conditions are challenging, but volume trends have stabilized," said chief executive Denis Machuel.
Syensqo increased 6.1% to €77.36 after the Belgian chemical company said it plans to reduce about 2% of its workforce.
Associated British Foods increased 0.7% to 2,305.0 pence after the parent of retailer Primark reported strong financial results for the year ending on September 14.
Group revenue increased 2% to £20.0 billion from £19.8 billion, pre-tax profit advanced 43% to £1.9 billion from £1.3 billion, and basic earnings per share rose 44% to 193.7 pence from 134.20 pence a year ago.
Free cash flow soared to £1.4 billion from £269 million a year ago, driven by significant growth in operating profit and improvement in working capital.
Japan Indexes Rebounded After Two Days of Losses
Tokyo market indexes advanced after investors returned from a three-day holiday.
The Nikkei 225 stock average gained 1% and the Topix index advanced 0.8% after investors reacted to the rebound in tech stocks in overnight trading in New York.
Last week, market indexes extended losses to the third week in a row amid growing policy uncertainty and political instability.
Investors are looking forward to the possible formation of an alliance between LDP-Komeito and the Democratic Party for the People, ending political instability for now.
Moreover, mixed corporate results dampened market sentiment as investors grappled with elevated tensions in the Middle East.
Market enthusiasm was muted ahead of the U.S. presidential and congressional election on Wednesday, which could determine the direction of future government spending, support for the war in Ukraine, and military activities in Asia.
The U.S. Federal Reserve is set to announce its rate decisions on Thursday, and investors are divided about the possible rate cut of 25 basis points following the supersize 50-basis-point cut in September.
Japan Stock Movers: Yamaha and NH Foods Dropped 10%
The Nikkei 225 Stock Average increased 1.1% to 38,474.90, and the broader Topix index advanced 0.8% to 2,664.26.
Tokyo Electron gained 1.9% to ¥22,930.0, Advantest increased 1.7% to ¥8,899.0, and Disco Corp. advanced 4.4% to ¥44,540.0.
Yamaha Corp. declined 13.2% to ¥1,081.0 after the musical instrument company reported interim results.
Revenue in the first-half ending in September increased 3.9% to 228.1 billion yen, net income plunged 64.6% to 5.3 billion yen, and earnings per share dropped to 10.67 from 29.44 a year ago.
The company declared an interim dividend of 37 yen per share, reflecting a 3-for-1 stock split on October 1.
NH Foods declined 9.7% to ¥4,754.0 after the food processing company reported its interim financial results.
Revenue in the first half ending in September increased 4.9% to 683.8 billion yen, net profit declined 9.8% to 19.7 billion yen, and earnings per share eased to 174.19 yen from 194.88 yen a year ago.
The company estimated year-end dividend of 135 yen, an increase from 119 yen in the previous year.
China and Hong Kong Indexes Advanced Second Consecutive Day
China and Hong Kong stocks advanced following a private measure of the service sector showing rising activities.
The Hang Seng index and the mainland-focused CSI 300 index increased 1.5% in the hopes that the world's second-largest economy will continue open markets to attract foreign investments.
The Caixin China General Services PMI increased to 52.0 in October from 50.3 in the previous month and advanced at the fastest pace in three months following a series of supportive measures from the People's Bank of China and the finance ministry.
The latest service data added to last week's positive signals from the manufacturing and construction sectors, indicating that the stimulus measures are helping the economy for now.
Premier Li Qiang said China is ready to open local markets to foreign investors and urged local government officials to remove internal barriers to create a larger national market.
Premier Qiang was speaking to a group of Chinese officials and business leaders at the start of the China International Import Expo in Shanghai on Tuesday.
Despite the warm welcome offered to foreign investors, many long-time investors in China are leaving and setting up new operations in Vietnam, Mexico, India, and Malaysia.
Investors are leaving China because of Beijing's arbitary enforcement of law, slowing economic growth, persistent stealing of intellectual property, and rising tensions with the West.
China Stock Movers
The Hang Seng index increased 1.5% to 20,855.24, and the mainland-focused CSI 300 index jumped 2.4% to 4,038.10.
Yum China increased 5.5% to HK $380.20 after the operator of a chain of fast food stores reported higher-than-expected earnings.
Property stocks rebounded for the second day in a row in the hopes that the Standing Committee of the People's National Congress is likely to provide strong measures to revive the property markets at the end of the meeting on Friday.
China Vanke increased 2.6% to HK $7.47, China Resources Land gained 1.7% to HK $27.0, and Longfor Group Holdings advanced 1.9% to HK $13.36.
Nongfu Spring soared 7.4% to HK $13.36, and SMIC advanced 4.2% to HK $26.95. China and Hong Kong stocks advanced following a private measure of the service sector showing rising activities.
The Hang Seng index and the mainland-focused CSI 300 index increased 1.5% in the hopes that the world's second-largest economy will continue open markets to attract foreign investments.
The Caixin China General Services PMI increased to 52.0 in October from 50.3 in the previous month and advanced at the fastest pace in three months following a series of supportive measures from the People's Bank of China and the finance ministry.
The latest service data added to last week's positive signals from the manufacturing and construction sectors, indicating that the stimulus measures are helping the economy for now.
Premier Li Qiang said China is ready to open local markets to foreign investors and urged local government officials to remove internal barriers to create a larger national market.
Premier Qiang was speaking to a group of Chinese officials and business leaders at the start of the China International Import Expo in Shanghai on Tuesday.
Despite the warm welcome offered to foreign investors, many long-time investors in China are leaving and setting up new operations in Vietnam, Mexico, India, and Malaysia.
Investors are leaving China because of Beijing's arbitary enforcement of law, slowing economic growth, persistent stealing of intellectual property, and rising tensions with the West.
China Stock Movers
The Hang Seng index increased 1.5% to 20,855.24, and the mainland-focused CSI 300 index jumped 2.4% to 4,038.10.
Yum China increased 5.5% to HK $380.20 after the operator of a chain of fast food stores reported higher-than-expected earnings.
Property stocks rebounded for the second day in a row in the hopes that the Standing Committee of the People's National Congress is likely to provide strong measures to revive the property markets at the end of the meeting on Friday.
China Vanke increased 2.6% to HK $7.47, China Resources Land gained 1.7% to HK $27.0, and Longfor Group Holdings advanced 1.9% to HK $13.36.
Nongfu Spring soared 7.4% to HK $13.36, and SMIC advanced 4.2% to HK $26.95.
S&P 500 and Nasdaq Jump 1% as Global Investors Await U.S. Election Results
Alexander Garcia
05 Nov, 2024
Miami
Wall Street indexes jumped more than 1% as voters lined up for the final day of voting in a closely contested presidential and congressional election.
The S&P 500 index and the Nasdaq Composite edged higher by more than 1% as investors reviewed another batch of corporate results.
The election results are likely to have significant effects on future government spending, individual and corporate tax levels, healthcare insurance affordability, funding of war in Ukraine, immigration policy, and trade barriers on goods imported from China.
Vice President Kamala Harris and former President Donald Trump avoided debating the serious issues confronting the U.S. economy: rapidly rising national debt, growing income inequality, and deteriorating international competitiveness.
About 82 million voters have cast their ballots as of Monday, representing over half of the votes cast in the 2020 presidential election, according to the Associated Press.
About 66% of the eligible voters, totaling 159 million, cast their ballots in the U.S. presidential election in 2020, the highest rate for any national election since 1900.
In addition to elections, the U.S. Federal Reserve is expected to announce its rate decisions on Thursday, and traders are divided about the possible rate cut of 25 basis points.
On the economic front, international goods and service trade deficit increased to $84.4 billion in September from $62.2 billion, the Bureau of Economic Analysis reported Tuesday.
Exports increased 2.2% to $267.9 billion and impots rose 9.5% to $352.2 billion from $323.8 billion a year ago, respectively.
Trade deficit widened a whopping 35% to $84.4 billion from $62.2 billion a year ago.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 1.1% to 5,776.60, the Nasdaq Composite rose 1.4% to 18,439.93, and the Russell 2000 index rose 1.0% to 2,241.76.
The yield on 2-year Treasury notes edged higher to 4.20%, 10-year Treasury notes inched higher to 4.33%, and 30-year Treasury bonds increased to 4.51%.
WTI crude oil increased $1.05 to $72.51 a barrel, and natural gas prices edged down 6 cents to $2.71 a thermal unit.
Gold increased by $6.53 to $2,742.52 an ounce, and silver increased by $0.30 to $32.70.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 103.75.
U.S. Stock Movers
Restaurant Brands International declined 2.2% to $68.50 after the parent of Burger King reported mixed quarterly results.
Palantir Technologies increased 15.4% to $47.72 after the software company and defense contractor reported higher than expected quarterly results.
NXP Semiconductors dropped 5% to $224.50 after the advanced chip maker estimated weaker-than-expected fourth quarter revenue, citing macroeconomic weakness in the U.S. and Europe.
Wynn Resorts decreased 2% to $93.64 after the casino operator reported weaker-than-expected revenue and earnings in the third quarter.
Boeing Company increased 1.8% to $157.90 after the striking workers agreed to accept the 38% pay hike over four years and ratification and productivity bonuses.
The vote ends the 53-day strike that crippled the aviation company and resumes the much-needed cash.
About 33,000 workers are set to resume work after 59% of union members voting members accepted the company's third formal offer.
Yum Brands increased 0.1% to $133.0 after the parent company of Pizza Hut and KFC reported weaker-than-expected quarterly results.
Same-store sales at both KFC and Pizza Hut declined 4%.
European Markets Struggled to Advance, Spain's Jobless Count Edged Higher
European markets traded around the flatline as investors reviewed another batch of quarterly results and awaited rate decisions this week.
Benchmark indexes in Paris, Milan, Frankfurt, and London lacked direction after a fresh batch of mixed earnings.
Investors are also awaiting rate decisions from central banks of the U.S., U.K., Sweden, and Norway later in the week.
The U.S. Federal Reserve and the Bank of England are likely to lower their key lending rates by 25 basis points after policy meetings on Thursday.
Moreover, investors are also awaiting the results of the U.S. presidential and congressional elections, which could impact the future funding of the NATO and trade relations between the U.S. and the eurozone.
Spain Jobless Count Advanced In October
The number of people registered as jobless increased by 26,769 from the previous month to 2.602 million in October, the lowest number for this month since 2007, according to the ministry of employment and social security.
On an annual basis, the number of unemployed declined by 157,350, or about 5.7%, from a year ago and fell at the fastest pace since September 2023.
Registered unemployment increased in all 17 autonomous communities, with the largest increases in Andalusia (7,723), Castilla-La Mancha (3,859), and Catalonia (2,909).
Unemployment among young people under 25 years of age rose in October by 8,361 people compared to the previous month.
France's Industrial Output Declined In September
France's industrial output declined 0.9% from the previous month in September, following the downwardly revised 1.1% increase in August, France's statistical agency INSEE reported on Tuesday.
Industrial activity declined for the first time since May, driven by a fall in manufacturing activities by 0.8%, in mining, energy, water supply, and waste management by 1.2%, and in construction activities by 0.3%.
On an annual basis, industrial output declined 0.6%.
Europe Indexes and Yields
The DAX index increased by 0.5% to 19,256.27; the CAC-40 index rose by 0.5% to 7,407.15; and the FTSE 100 index fell by 0.1% to 8,172.39.
The yield on 10-year German bonds edged higher to 2.42%, French bonds inched higher to 3.16%, the UK gilts edged higher to 4.49%, and Italian bonds decreased to 3.70%.
The euro edged higher to $1.09; the British pound inched higher to $1.29; and the U.S. dollar weakened to 86.19 Swiss cents.
Brent crude increased $0.96 to $76.06 a barrel, and the Dutch TTF natural gas rose by €0.08 to €40.40 per MWh.
Europe Stock Movers
Vestas Wind Systems declined 8.8% to DKK 124.0 after the wind turbine company lowered its estimate of operating earnings before special charges to €450 million from €500 million.
Adecco Group declined 10.5% to CHF 24.14 after the Swiss staffing company reported third quarter results that lagged market expectations.
Revenue in the third quarter declined 4% to €5.7 billion and net income fell 4% to €99 million from a year ago, respectively.
The temporary and permanent staffing services provider said market conditions are challenging in France and the United States.
"Macroeconomic conditions are challenging, but volume trends have stabilized," said chief executive Denis Machuel.
Syensqo increased 6.1% to €77.36 after the Belgian chemical company said it plans to reduce about 2% of its workforce.
Associated British Foods increased 0.7% to 2,305.0 pence after the parent of retailer Primark reported strong financial results for the year ending on September 14.
Group revenue increased 2% to £20.0 billion from £19.8 billion, pre-tax profit advanced 43% to £1.9 billion from £1.3 billion, and basic earnings per share rose 44% to 193.7 pence from 134.20 pence a year ago.
Free cash flow soared to £1.4 billion from £269 million a year ago, driven by significant growth in operating profit and improvement in working capital.
Japan Indexes Rebounded After Two Days of Losses
Tokyo market indexes advanced after investors returned from a three-day holiday.
The Nikkei 225 stock average gained 1% and the Topix index advanced 0.8% after investors reacted to the rebound in tech stocks in overnight trading in New York.
Last week, market indexes extended losses to the third week in a row amid growing policy uncertainty and political instability.
Investors are looking forward to the possible formation of an alliance between LDP-Komeito and the Democratic Party for the People, ending political instability for now.
Moreover, mixed corporate results dampened market sentiment as investors grappled with elevated tensions in the Middle East.
Market enthusiasm was muted ahead of the U.S. presidential and congressional election on Wednesday, which could determine the direction of future government spending, support for the war in Ukraine, and military activities in Asia.
The U.S. Federal Reserve is set to announce its rate decisions on Thursday, and investors are divided about the possible rate cut of 25 basis points following the supersize 50-basis-point cut in September.
Japan Stock Movers: Yamaha and NH Foods Dropped 10%
The Nikkei 225 Stock Average increased 1.1% to 38,474.90, and the broader Topix index advanced 0.8% to 2,664.26.
Tokyo Electron gained 1.9% to ¥22,930.0, Advantest increased 1.7% to ¥8,899.0, and Disco Corp. advanced 4.4% to ¥44,540.0.
Yamaha Corp. declined 13.2% to ¥1,081.0 after the musical instrument company reported interim results.
Revenue in the first-half ending in September increased 3.9% to 228.1 billion yen, net income plunged 64.6% to 5.3 billion yen, and earnings per share dropped to 10.67 from 29.44 a year ago.
The company declared an interim dividend of 37 yen per share, reflecting a 3-for-1 stock split on October 1.
NH Foods declined 9.7% to ¥4,754.0 after the food processing company reported its interim financial results.
Revenue in the first half ending in September increased 4.9% to 683.8 billion yen, net profit declined 9.8% to 19.7 billion yen, and earnings per share eased to 174.19 yen from 194.88 yen a year ago.
The company estimated year-end dividend of 135 yen, an increase from 119 yen in the previous year.
China and Hong Kong Indexes Advanced Second Consecutive Day
China and Hong Kong stocks advanced following a private measure of the service sector showing rising activities.
The Hang Seng index and the mainland-focused CSI 300 index increased 1.5% in the hopes that the world's second-largest economy will continue open markets to attract foreign investments.
The Caixin China General Services PMI increased to 52.0 in October from 50.3 in the previous month and advanced at the fastest pace in three months following a series of supportive measures from the People's Bank of China and the finance ministry.
The latest service data added to last week's positive signals from the manufacturing and construction sectors, indicating that the stimulus measures are helping the economy for now.
Premier Li Qiang said China is ready to open local markets to foreign investors and urged local government officials to remove internal barriers to create a larger national market.
Premier Qiang was speaking to a group of Chinese officials and business leaders at the start of the China International Import Expo in Shanghai on Tuesday.
Despite the warm welcome offered to foreign investors, many long-time investors in China are leaving and setting up new operations in Vietnam, Mexico, India, and Malaysia.
Investors are leaving China because of Beijing's arbitary enforcement of law, slowing economic growth, persistent stealing of intellectual property, and rising tensions with the West.
China Stock Movers
The Hang Seng index increased 1.5% to 20,855.24, and the mainland-focused CSI 300 index jumped 2.4% to 4,038.10.
Yum China increased 5.5% to HK $380.20 after the operator of a chain of fast food stores reported higher-than-expected earnings.
Property stocks rebounded for the second day in a row in the hopes that the Standing Committee of the People's National Congress is likely to provide strong measures to revive the property markets at the end of the meeting on Friday.
China Vanke increased 2.6% to HK $7.47, China Resources Land gained 1.7% to HK $27.0, and Longfor Group Holdings advanced 1.9% to HK $13.36.
Nongfu Spring soared 7.4% to HK $13.36, and SMIC advanced 4.2% to HK $26.95. China and Hong Kong stocks advanced following a private measure of the service sector showing rising activities.
The Hang Seng index and the mainland-focused CSI 300 index increased 1.5% in the hopes that the world's second-largest economy will continue open markets to attract foreign investments.
The Caixin China General Services PMI increased to 52.0 in October from 50.3 in the previous month and advanced at the fastest pace in three months following a series of supportive measures from the People's Bank of China and the finance ministry.
The latest service data added to last week's positive signals from the manufacturing and construction sectors, indicating that the stimulus measures are helping the economy for now.
Premier Li Qiang said China is ready to open local markets to foreign investors and urged local government officials to remove internal barriers to create a larger national market.
Premier Qiang was speaking to a group of Chinese officials and business leaders at the start of the China International Import Expo in Shanghai on Tuesday.
Despite the warm welcome offered to foreign investors, many long-time investors in China are leaving and setting up new operations in Vietnam, Mexico, India, and Malaysia.
Investors are leaving China because of Beijing's arbitary enforcement of law, slowing economic growth, persistent stealing of intellectual property, and rising tensions with the West.
China Stock Movers
The Hang Seng index increased 1.5% to 20,855.24, and the mainland-focused CSI 300 index jumped 2.4% to 4,038.10.
Yum China increased 5.5% to HK $380.20 after the operator of a chain of fast food stores reported higher-than-expected earnings.
Property stocks rebounded for the second day in a row in the hopes that the Standing Committee of the People's National Congress is likely to provide strong measures to revive the property markets at the end of the meeting on Friday.
China Vanke increased 2.6% to HK $7.47, China Resources Land gained 1.7% to HK $27.0, and Longfor Group Holdings advanced 1.9% to HK $13.36.
Nongfu Spring soared 7.4% to HK $13.36, and SMIC advanced 4.2% to HK $26.95.