Market Update
Wall Street Indexes Trade Sideways Ahead of U.S. Elections and Rate Decisions
Barry Adams
04 Nov, 2024
New York City
Stock market indexes advanced in early trading on Monday as investors prepared for a busy week of earnings and awaited the outcome of the U.S. presidential election and other chambers of legislation.
The U.S. presidential election could impact stock trading around the world this week, but political leaders in Asia brace for higher trade barriers regardless of which party wins control.
In addition, the U.S. Federal Reserve is set to announce its monetary policy decision, and investors are divided about the possible rate cut of 25 basis points or no change in rate.
On the earnings front, at least 500 companies are scheduled to release their quarterly results, including Toyota Motor, Ferrari, AIG, CVS, Qualcomm, and Marriott.
Last week, world stock market indexes declined in unison as investors faced a deluge of corporate earnings, a flood of economic data, and political outcomes.
World market indexes fell between 1% and 2% as investors turned cautious ahead of the U.S. presidential election on Tuesday, and in political upheaval, Japan’s ruling coalition lost its majority in the parliamentary elections.
Moreover, investors are closely monitoring which party wins control of the U.S. House of Representatives and the U.S. Senate, which could determine future tax system overhaul and trajectory of government spending.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.3% to 5,711.49, the Nasdaq Composite fell 0.6% to 18,127.60, and the Russell 2000 index rose 0.6% to 2,210.13.
The yield on 2-year Treasury notes edged higher to 4.16%, 10-year Treasury notes inched higher to 4.29%, and 30-year Treasury bonds increased to 4.49%.
WTI crude oil increased $1.91 to $71.40 a barrel, and natural gas prices edged down 2 cents to $2.64 a thermal unit.
Gold increased by $8.58 to $2,744.84 an ounce, and silver increased by $0.27 to $32.70.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 103.74.
U.S. Stock Movers
Marriott International declined 2% to $255.30 after the hotel chain operator reported its quarterly results.
Revenue increased 6% to $6.3 billion from $5.9 billion, net income plunged 22% to $584 million from $752 million, and diluted earnings per share fell 18% to $2.02 from $2.51 a year ago.
The company added a net 16,000 rooms in the quarter and indicated about 3,800 properties with 585,000 rooms were in the development stage around the world.
The company also confirmed it acquired 4.5 million shares of common stock for $1.0 billion in the third quarter.
Berkshire Hathaway Inc. Class B declined 0.3% to $451.0 after the diversified conglomerate reported its quarterly results.
Total revenue in the third quarter declined to $92.99 billion from $93.21 billion, net earnings attributable to shareholders swung to a profit of $26.2 billion from a loss of $12.7 billion, and diluted earnings per Class B share were $12.18 from a loss of $5.88 a year earlier.
The company's operating earnings from fully-owned businesses declined 6% to $10.1 billion, reflecting a weakness in its underwriting business.
Investment in equity securities declined to $271.6 billion from $353.8 billion, and cash and equivalent rose to $325.2 billion from $276.9 billion a year ago.
Europe Movers: Burberry, Energy Stocks, Eni, Luxury Stocks, Skanska
Inga Muller
04 Nov, 2024
Frankfurt
European markets lacked direction ahead of a busy week of earnings and economic releases.
Manufacturing activities in Spain expanded at the fastest pace over two years, and in Italy they contracted for the seventh consecutive month.
The DAX index increased by 0.1% to 19,267.85; the CAC-40 index rose by 0.3% to 7,430.84; and the FTSE 100 index rose by 0.7% to 8,235.38.
The yield on 10-year German bonds edged higher to 2.41%, French bonds inched higher to 3.15%, the UK gilts edged higher to 4.46%, and Italian bonds decreased to 3.66%.
Energy stocks rebounded after crude oil prices advanced following the OPEC+'s decision to delay an increase in output by a month.
Shell PLC gained 1.2% to 2,610.50 pence, BP plc rose 1.5% to 384.0 pence, and TotalEnergies SE increased 0.8% to €58.36.
Eni SpA increased 0.7% to €14.13 after the Italian energy company completed the sale of two upstream offshore assets.
Burberry Group increased 6% to 860.51 pence on speculation that Italy-based Moncler could be preparing for a bid for the luxury fashion product maker.
Skanska AB advanced 1% to SEK 219.80 after the Swedish construction company signed a contract to build office buildings in London's West End.
Mining companies advanced following a rebound in commodities prices as China's top legislators commenced a weeklong meeting to finalize the amount of additional fiscal measures.
Anglo American increased 1.4% to 2,428.50 pence, Antofagasta advanced 0.8% to 1,777.81 pence, and Glencore added 0.8% to 410.83 pence.
European Markets Flatlined In Busy of Week of Rate Decisions, Manufacturing Activities Diverged In Spain and Italy
Bridgette Randall
04 Nov, 2024
London
European market indexes lacked direction in a busy week of earnings and economic releases.
Benchmark indexes in Paris, London, Milan, and Frankfurt traded in a tight range as investors prepare to review quarterly updates from leading corporations.
The Bank of England is expected to lower its key lending rate by 25 basis points, reflecting weakening inflationary pressures.
The central banks of Norway and Sweden are set to release their rate decisions this week, and traders are expecting both central banks to hold rates steady.
Germany is scheduled to release its international trade data, and the country's trade deficit is likely to expand from the previous month.
The U.S. Federal Reserve is also expected to lower its key interest rates by 25 basis points following a supersize 50 basis point cut in September.
The Standing Committee of the People's National Congress in China kicked off its weeklong meeting that will decide the debt level increase and pave the way for additional fiscal stimulus measures.
The meeting is closely watched by investors, as lawmakers are likely to approve additional spending between 2 trillion and 4 trillion yuan, or between €250 billion and €490 billion.
Closer to home, a private survey showed Spain's factory activities expanded at the fastest pace in October since February 2022, driven by improving new orders and rising production.
The HCOB Spain Manufacturing PMI increased 54.5 from 53.0 in September, S&P Global reported Monday.
Italy's factory activities continued to contract for the seventh consecutive month in a row in October amid deteriorating demand from the U.S., Middle East, and other Eurozone members.
The HCOB Italy Manufacturing PMI slowed to 46.9 from 48.3 in the previous month, S&P Global said in a separate report.
Europe Indexes and Yields
The DAX index increased by 0.1% to 19,267.85; the CAC-40 index rose by 0.3% to 7,430.84; and the FTSE 100 index rose by 0.7% to 8,235.38.
The yield on 10-year German bonds edged higher to 2.41%, French bonds inched higher to 3.15%, the UK gilts edged higher to 4.46%, and Italian bonds decreased to 3.66%.
The euro edged higher to $1.09; the British pound inched higher to $1.29; and the U.S. dollar weakened to 86.32 Swiss cents.
Brent crude increased $2.20 to $75.30 a barrel, and the Dutch TTF natural gas rose by €1.27 to €40.21 per MWh.
Europe Stock Movers
Energy stocks rebounded after crude oil prices advanced following the OPEC+'s decision to delay an increase in output by a month.
Shell PLC gained 1.2% to 2,610.50 pence, BP plc rose 1.5% to 384.0 pence, and TotalEnergies SE increased 0.8% to €58.36.
Eni SpA increased 0.7% to €14.13 after the Italian energy company completed the sale of two upstream offshore assets.
Burberry Group increased 6% to 860.51 pence on speculation that Italy-based Moncler could be preparing for a bid for the luxury fashion product maker.
Skanska AB advanced 1% to SEK 219.80 after the Swedish construction company signed a contract to build office buildings in London's West End.
Mining companies advanced following a rebound in commodities prices as China's top legislators commenced a weeklong meeting to finalize the amount of additional fiscal measures.
Anglo American increased 1.4% to 2,428.50 pence, Antofagasta advanced 0.8% to 1,777.81 pence, and Glencore added 0.8% to 410.83 pence.
China Indexes Edged Higher as Lawmakers Debate Fiscal Deficit Measures
Li Chen
04 Nov, 2024
Hong Kong
Stocks in China and Hong Kong advanced as investors shifted their focus to the key meeting of lawmakers that could pave the way for fiscal stimulus.
The Hang Seng index gained 0.3% and the mainland-focus CSI 300 index advanced 1.4% as the weeklong Standing Committee of the People's National Congress started.
The critical meeting of lawmakers is expected to approve the lifting of the debt ceiling limit and the sale of long-term bonds to finance fiscal measures supporting the property markets.
Investors are anticipating that the previously pledged fiscal measures by the top political leaders and finance ministry over the last five weeks will soon be enacted.
The legislative meeting this week is likely to provide more clarity about the amount and timing of fiscal measures and details of the plan to revive the moribund property market.
Market participants have built up expectations of fiscal measures totaling between 2 trillion yen and 4 trillion yen and supportive financial measures for local governments to revive local residential projects in second- and third-tier cities.
On the economic front, investors are looking forward to the release of international trade data and the survey of non-manufacturing industries.
China Stock Movers
The Hang Seng index increased 0.3% to 20,574.16, and the CSI 300 index rose 1.4% to 3,944.76.
Property stocks edged lower and erased some of Friday's gains following the lukewarm new home sales over the weekend.
China Vanke declined 1.6% to HK $7.29, China Resource Land decreased 0.4% to HK $26.65, and Sun Hung Kai Properties eased 0.1% to HK $85.10.
Electric vehicle makers traded higher after October vehicle sales were ahead of market expectations.
Steep discounts and government subsidies supported the sale of electric vehicles, and the advanced vehicle sales surpassed petrol car sales for the third month in a row in October.
Electric vehicle sales increased to 1.12 million units in October, with a market share of 53.3%, according to CPCA, or China Passenger Car Association.
BYD increased 3.4% to HK $287.20 after the company's vehicle sales soared 66% from a year ago to 502,757 units.
The company reported a fifth consecutive monthly record sales of electric and hybrid vehicles, largely because of the subsidies to replace older petrol cars.
Li Auto increased 1.5% to HK $98.55 after the company said electric vehicle sales dropped 1% from the previous month to 51,443 units.
NIO decreased 0.3% to HK $5.23 after the company said sales fell 1% from the previous month to 20,976 units.
India Movers: Bajaj Auto, Coal India, Hero Motocorp, Mahindra & Mahindra, NMDC, VST Industries, V.S.T. Tillers
Arun Goswami
04 Nov, 2024
Mumbai
Market indexes in Mumbai fell more than 1%, and the rupee held firm near its record low.
Motorcycle and passenger car sales in October fell short of market expectations.
The Sensex index decreased by 1.4% to 78,608.02, and the Nifty index fell by 1.5% to 23,934.30.
On the Mumbai stock exchange, 107 stocks traded at their 52-week highs, and 27 stocks traded at their 52-week lows.
VST Tillers & Tractors decreased 0.5% to ₹4,595.95, and agriculture equipment company reported a rise in tractor and power equipment sales.
Tractor sales in October increased to 680 units from 289 units, and power tiller sales jumped to 1,783 units from 1,220 units a year ago.
Vehicle makers reported mixed sales in October as buyers searched for bargains in rural areas.
TVS Motor decreased 2.5% to ₹2,445.50, Eicher Motors dropped 1.5% to ₹4,882.0, Bajaj Auto declined 4.3% to ₹9,456.30, and Hero Motocorp eased 4% to ₹4,821.05.
Tata Motors decreased 2.4% to ₹823.35, Mahindra & Mahindra rose 1.4% to ₹2,858.05, and Hyundai Motor India fell 1% to ₹1,813.95.
TVS Motor sales increased 4.89 lakh from 4.34 lakh units, Eicher Motors sales advanced to 1.1 lakh from 84,435 units, Tata Motors sales decreased to 82,682 from 82,954 units, Maruti Suzuki sales increased to 2.06 lakh from 1.99 lakh, and Hyundai Motors sales advanced to 78,078 from 68,700 units from a year ago, respectively.
VST Industries dropped 3.4% to ₹336.25 after the cigarette and tobacco product company reported a sharp decline in profit.
Revenue in the September quarter decreased to ₹469.1 crore from ₹481.5 crore, net income fell to ₹47.7 crore from ₹75.4 crore, and diluted earnings per share to ₹2.80 from ₹4.47 a year ago.
Coal India declined 3.6% to ₹437.70 and the mining company trades ex-dividend tomorrow.
The coal mining company said coal production in October increased 2.3% to 61.1 million tons and sales eased 0.5% to 61.7 million tons, from a year ago, respectively.
Sales in the seven months to October in the current fiscal year increased 1.5% to 428.5 million tons and production rose 2.5% to 403.8 million tons.
NMDC jumped 0.4% to ₹223.64 after the iron ore mining company reported rising sales and production in October.
Sales increased to 4.03 million tons from 3.44 million tons, and production advanced to 4.07 million tons from 3.92 million tons, a year earlier, respectively.
Wall Street Indexes Brave higher After Amazon Earnings and October Jobs Report
Barry Adams
01 Nov, 2024
New York City
Wall Street indexes rebounded following the latest batch of positive earnings, and investors overlooked the latest jobs report.
The S&P 500 index added 0.8% and the Nasdaq Composite advanced 1.1% after Amazon.com Inc. reported better-than-expected earnings.
Investors reacted to the latest batch of quarterly results from leading corporations, including results from Exxon Mobil, Chevron, Carnival Corp., Intel, Apple, and Amazon.com.
This week, about 700 companies released earnings, and leading tech companies reported higher revenue and earnings, but their cautious outlook dented market sentiment.
On the economic front, the U.S. economy added 12,000 jobs in October, well below the 223,000 in September, the U.S. Bureau of Labor Statistics reported Friday.
The nonfarm payrolls rose the weakest since December 2020, due to the impacts of Hurricanes Helene and Milton and monthslong strikes at Boeing and hotels in Hawaii and California.
The unemployment rate was steady at 4.1%, and average hourly wages increased 0.4% from the previous month and 4% from a year ago to $35.46.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.8% to 5,748.61, the Nasdaq Composite rose 1.1% to 18,281.86, and the Russell 2000 index rose 1.1% to 2,219.07.
The yield on 2-year Treasury notes edged lower to 4.10%, 10-year Treasury notes inched lower to 4.25%, and 30-year Treasury bonds inched lower to 4.46%.
WTI crude oil increased $1.74 to $71.03 a barrel, and natural gas prices edged down 3 cents to $2.67 a thermal unit.
Gold increased by $10.32 to $2,756.82 an ounce, and silver increased by $0.17 to $32.85.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 103.71.
U.S. Stock Movers
Amazon.com Inc. increased 7% to $199.22 after the online store and services provider reported higher earnings and revenue, driven by a 19% increase in sales for its cloud services.
Apple Inc. decreased 1.8% to $221.85 after the computing device maker reported sales and earnings that surpassed market expectations. Net income declined after the company paid a one-time charge linked to a tax levy imposed by the European Union's agency.
Exxon Mobil Corp. advanced 2.2% to $119.29 after the oil company reported better-than-expected revenue and earnings in the third quarter.
Revenue in the third quarter decreased to $90.01 billion from $90.76 billion, net income attributable to shareholders fell to $8.6 billion from $9.07 billion, and diluted earnings per share eased to $1.92 from $2.95 a year earlier.
The company increased its fourth-quarter dividend to 99 cents per share from 95 cents, payable on December 10 to shareholders on record on November 14.
Intel Corp. rose 7% to $23.01 after the advanced chipmaker reported loss in its latest quarter but lifted its annual outlook.
Revenue in the third quarter declined 6% to $13.3 billion from $14.2 billion, net income swung to a loss of $16.6 billion from a profit of $0.3 billion, and diluted earnings per share were $3.88 compared to 7 cents a year ago.
Net income in the quarter was impacted by the $6 billion charges linked to accelerated depreciation and goodwill impairment charges and $9.9 billion charges related to the establishment of a valuation allowance against U.S. deferred tax assets.
The company estimated fourth-quarter earnings to range between $13.3 billion and $14.3 billion and a loss of 24 cents per share in the quarter.
U.S. Movers: Amazon.com, Apple, Carnival, Exxon Mobil, Intel
Scott Peters
01 Nov, 2024
New York City
Amazon.com Inc. increased 7% to $199.22 after the online store and services provider reported higher earnings and revenue, driven by a 19% increase in sales for its cloud services.
Net sales in the third quarter increased 11% to $158.9 billion from $143.1 billion, net income advanced to $15.3 billion from $9.9 billion, and diluted earnings per share rose to $.43 from 94 cents a year ago.
North America segment sales increased 9% to $95.5 billion, international segment sales increased 12% to $35.9 billion, and AWS segment sales increased 19% to $27.5 billion, from a year ago, respectively.
The company estimated fourth quarter sales between $181.5 billion and $188.5 billion, an increase between 7% and 11% from a year ago.
Operating income is estimated to range between $16.0 billion and $20.0 billion, an increase from $13.2 billion a year ago.
Apple Inc. decreased 1.8% to $221.85 after the computing device maker reported sales and earnings that surpassed market expectations. Net income declined after the company paid a one-time charge linked to a tax levy imposed by the European Union's agency.
Revenue in the fiscal fourth quarter ending in September increased 6% to $94.9 billion from $89.5 billion, net income fell to $14.7 billion from $22.95 billion, and diluted earnings per share dropped to 97 cents from $1.46 a year ago.
Net sales in Americas increased to $41.7 billion from $40.1 billion, in Europe jumped to $24.9 billion from $22.4 billion, and in Greater China edged down to $15.03 billion from $15.08 billion, a year ago, respectively.
iPhone sales surged to $46.2 billion from $43.8 billion, Mac sales rose to $7.6 billion from $7.6 billion, and services revenue increased to $24.9 billion from $22.3 billion a year ago, respectively.
Exxon Mobil Corp. advanced 2.2% to $119.29 after the oil company reported better-than-expected revenue and earnings in the third quarter.
Revenue in the third quarter decreased to $90.01 billion from $90.76 billion, net income attributable to shareholders fell to $8.6 billion from $9.07 billion, and diluted earnings per share eased to $1.92 from $2.95 a year earlier.
The company increased its fourth-quarter dividend to 99 cents per share from 95 cents, payable on December 10 to shareholders on record on November 14.
Intel Corp. rose 7% to $23.01 after the advanced chipmaker reported loss in its latest quarter but lifted its annual outlook.
Revenue in the third quarter declined 6% to $13.3 billion from $14.2 billion, net income swung to a loss of $16.6 billion from a profit of $0.3 billion, and diluted earnings per share were $3.88 compared to 7 cents a year ago.
Net income in the quarter was impacted by the $6 billion charges linked to accelerated depreciation and goodwill impairment and $9.9 billion charges related to the establishment of a valuation allowance against U.S. deferred tax assets.
The company estimated fourth-quarter earnings to range between $13.3 billion and $14.3 billion and GAAP earnings per share of a loss of 24 cents.
Carnival Corp. slipped 0.8% to $21.83 after the company reported record quarterly results, but weak outlook weighed on the market sentiment.
Revenue in the quarter ending in August increased to $7.9 billion from $6.8 billion, net income rose to $1.7 billion from $1.1 billion, and diluted earnings per share rose to $1.26 from 79 cents a year ago.
During the third quarter, booking volumes remained robust for 2025 sailings at higher prices, in constant currency, compared to the prior year, and cumulative advanced booked position for full year 2025 is above the previous 2024 record with higher prices.
The company estimated fourth quarter net yields to increased 5% from the record level in 2023, and adjusted operating earnings to rise 20% to $1.14 billion.
European Markets Halt 3-Day Losing Streak, Swiss Inflation Slows but Nominal Prices Remain High
Bridgette Randall
01 Nov, 2024
London
Stock market indexes in Europe advanced and halted three consecutive days of losses as investors continue to review the latest corporate results and economic outlook.
Investors reassessed the timing and amount of future rate cuts after inflation rebounded in the eurozone and third quarter economic growth accelerated in the currency union, according to official releases earlier in the week.
Swiss Inflation Decelerates in October
Switzerland's consumer price inflation eased to an annual rate of 0.6% in October from 0.8% in September, the Swiss Federal Statistics Office reported Friday.
Overall inflation slowed for the third month in a row in October and dropped to the lowest level since June 2021.
Monthly inflation decreased 0.1% from the previous month, marking no growth for the fifth month in a row.
While inflation may be decelerating in Switzerland, nominal prices are still rising, and prices of most basic goods and services are generally the highest in Europe and among developed nations.
UK Home Price Inflation Extended to Eighth Month In October
UK home price inflation slowed in October, and home prices rose for the eighth month in a row, the Nationwide Building Society reported Friday.
The Nationwide House Price Index increased 2.4% in October after rising 3.2% in September.
House prices have been rising, indicating strong demand as mortgage approvals approach pre-pandemic levels despite higher interest rates.
On a monthly basis, house price inflation eased to 0.1% in October, slowing from a revised 0.6% increase in September.
Europe Indexes and Yields
The DAX index increased by 0.6% to 19,182.42; the CAC-40 index rose by 0.6% to 7,397.16; and the FTSE 100 index rose by 0.8% to 8,173.75.
The yield on 10-year German bonds edged higher to 2.39%, French bonds inched higher to 3.14%, the UK gilts edged higher to 4.42%, and Italian bonds increased to 3.67%.
The euro edged lower to $1.08; the British pound inched higher to $1.29; and the U.S. dollar weakened to 86.81 Swiss cents.
Brent crude increased $1.48 to $74.25 a barrel, and the Dutch TTF natural gas rose by €0.87 to €39.46 per MWh.
Europe Stock Movers
China-linked luxury stocks advanced following a private survey confirming the official reading of the manufacturing sector, indicating rising activities.
Hermes International increased 0.3% to €2,080.0, Kering SA decreased 0.3% to €228.15, and LVMH added 0.4% to €611.90.
Energy complex stocks advanced after crude oil prices rebounded following reports that Iran is preparing to launch a military strike on Israel that could involve drones and ballistic missiles.
BP plc increased 1.8% to 383.45 pence, Shell PLC rose 1.4% to 2,614.0 pence, and TotalEnergies SE jumped 2% to €58.55.
Japan's Nikkei 225 Extended Weekly Losses; Lasertec Dropped 16%, Panasonic Jumped 8%
Akira Ito
01 Nov, 2024
Tokyo
Stock market indexes in Tokyo traded down and extended weekly losses following a sharp selloff on Wall Street in Thursday's trading.
The Nikkei 225 Stock Average and the Topix index dropped 2% after tech stocks dropped as much as 5% in Tokyo.
Market indexes in Tokyo were under pressure after Microsoft and Meta Platforms announced robust quarterly results, but their forward-looking statements dampened investor sentiment in New York.
Microsoft cautioned sales growth is likely to slow in the current quarter, and Meta Platforms said elevated investment in artificial intelligence is likely to impact its future earnings.
Stocks were also under pressure after investors reassessed comments from Bank of Japan Governor Kazuo Ueda's less dovish comments during a press conference held at the end of a two-day policy meeting on Thursday.
The yen traded at 152.53 against the U.S. dollar as Governor Ueda left the door open for a possible rate increase in December, citing optimism about the global and domestic economies.
The au jibun Bank Japan Manufacturing PMI index was revised higher to 49.2 in October from the preliminary reading of 49.0 and a final 49.7 in the previous month, S&P Global reported Friday.
Factory activities declined for the fourth month in a row and fell at the fastest pace since March as business sentiment was nearly unchanged from September's 21-month low.
Japan Stock Movers
The Nikkei 225 index decreased 2.5% to 38,100.16, and the Topix index dropped 1.8% to 2,647.79.
Tech stocks led the declines in Friday's trading and extended weekly losses.
Advantest Corp. declined 4.2% to ¥8,767.0, Tokyo Electron dropped 3.9% to ¥22,485.0, Disco Corp. fell 3.8% to ¥42,770.0, and Renesas Electronics plunged 5.6% to ¥1,985.50.
Lasertec plunged 16% to ¥19,630.0 after the company reported weak quarterly results and said it will no longer provide quarterly guidance, citing short-term volatility.
Revenue in the September quarter declined 22.3% to 36.7 billion yen, net income attributable to shareholders rose 16% to 8.9 billion yen, and diluted earnings per share rose to 98.94 from 85.33 yen a year ago.
The company reiterated its fiscal year sales estimate of 12.4% increase to 240 billion yen, net income attributable to shareholders to advance 25.3% to 74 billion yen, and net income per share of 820.52 yen.
Sumitomo Mitsui Financial declined 1% to ¥3,239.0, Mitsubishi UFJ fell 0.5% to ¥1,620.50, and Mizuho Financial decreased 0.1% to ¥3,210.0.
Seven & I Holdings declined 1.8% to ¥2,159.50, Isetan Mitsukoshi dropped 2.8% to ¥2,257.50, and Fast Retailing Co. fell 2.9% to ¥48,140.0.
Panasonic Holdings increased 8.5% to ¥1,343.50 after the electronics manufacturing firm reported a decline in profit in the first half, but the company reaffirmed its annual outlook.
Consolidated sales in the first-half ending in September increased 3.2% to 4.3 trillion yen from 4.1 trillion yen, net profit attributable to shareholders fell 34.5% to 188.9 billion yen, and diluted earnings per share fell to 80.90 from 123.51 yen a year earlier.
The company guided full-year fiscal 2025 sales to increase 1.2% to 8.6 trillion yen, net income attributable to shareholders to decline by 30.2% to 310 billion yen, and earnings per share of 132.80 yen.
New Home Sales In China Rebounded In October, Stock Indexes Pare Weekly Losses
Li Chen
31 Oct, 2024
Hong Kong
Stock market indexes in China and Hong Kong advanced and pared weekly losses in the hopes that the property market may be on a path to early recovery.
The Hang Seng index gained 1.5%, the mainland-focused CSI 300 index added 0.9%, and they increased 0.2% and declined 0.7% in the week, respectively.
New home sales at 22 leading home developers across mainland China soared 66% from the previous month in October and advanced 2% from a year ago, according to China Real Estate Information Corp.
New home sales rose for the first time this month after the People's Bank of China announced a raft of monetary measures and local governments eased restrictions on purchases.
The October sales added to optimism that the property market may be stabilizing after four years of decline and contribute to an economic recovery.
China's leading property developers have been mired in speculative residential projects funded by huge debts from local banks, shoddy construction practices, and unfinished homes that have been fully paid in advance by customers.
The widespread mismanagement and cozy relationship between local politicians, banks, and property developers have saddled millions of property buyers with mortgages and unfinished homes.
The current monetary and expected fiscal measures are not likely to have a lasting impact on the residential market, as consumers have little faith in property developers and local governments.
Investors took an optimistic view of the latest update on manufacturing activities, and the Caixin China General Manufacturing PMI showed a rebound in the sector.
The index increased at the fastest pace in four months in October to 50.3 from 49.3 in the previous month, after a series of stimulus measures from Beijing in late September.
On Thursday, the official data showed that the manufacturing sector returned to growth after contracting for five months in a row.
China Stock Movers
The Hang Seng index increased 1.5% to 20,620.22 and the mainland-focused CSI 300 index rose 0.9% to 3,924.96.
China Overseas Land and Investment increased 5.9% to HK $15.74, China Resources Land Ltd. added 5.6% to HK $27.30, and China Vanke Co. increased 1% to HK $27.30.
Tencent Holdings increased 4.2% to HK $421.40, Alibaba Group added 1.1% to HK $95.65, and JD.com Inc. increased 3% to HK $160.10.
Li Auto decreased 7.1% to HK $99.80 after the electric vehicle maker reported better-than-expected quarterly results, but weaker-than-expected fourth quarter sales guidance dragged the stock down.
The company reported strong third-quarter sales and guided higher sales in the fourth quarter, but the forecast fell short of market expectations.
Revenue in the third quarter increased 23% to 42.9 billion yuan; gross margin contracted to 21.5% from 22% from a year ago and from 19.5% in the second quarter.
Adjusted earnings per share in the quarter were 3.63 yuan, or 52 cents.
Vehicle delivery in the third quarter soared 45.4% to 152,000, and the company estimated between 160,000 and 170,000 vehicles in the fourth quarter.
The company guided revenue between 43.2 billion yuan and 45.9 billion yuan (between $6.2 billion and $6.5 billion).
T.S. Lines traded at HK$4.0 after falling as much as 5% in its first day of trading in Hong Kong.
The shipping company priced 250.9 million shares at HK $4.18 per share and raised HK $940.9 million.
The company has set the price range for its initial public offering between HK $3.50 and HK $4.50 per share.
The 225.8 million-share international offering was oversubscribed 2.2 times, and the 25.1 million-share domestic offering was oversubscribed 12 times.