Asian rally helps market look past zero-Covid confusion – The Market Herald

Asian rally helps market look past zero-Covid confusion – The Market Herald
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Australian stocks rose for a second day as Asian markets ignored weak Chinese trade data and attempts by Chinese health authorities to quell talk of easing Covid restrictions.

the S&P/ASX200 it climbed 41 points or 0.6 percent.

Gold miners, bulk metals producers and other resource stocks shone after sharp rallies in commodity prices on Friday. Westpac and ANZ were among the biggest drags on the day.

What moved the market

Hopes for China’s reopening have risen and fallen over the past week, as Chinese authorities have responded to social media speculation that the nation is preparing to eliminate covid zero. Attempts by health authorities over the weekend to stop the reopening of our rum seemed to have little effect.

Hong Kong hang up seng The index continued its best week in 11 years with a gain of 3.42 percent this afternoon. The Shanghai Composite, which rose 5.3 percent last week, rose 0.46 percent.

soft chinese Commercial data today may have raised hopes for government stimulus measures. China’s exports shrank an unexpected 0.3 percent last month from a year earlier, a sign global demand may be weakening. Imports contracted 0.7 percent.

Resource Reserves did the heavy lifting on the ASX following spectacular gains in commodity prices on Friday as reopening fever reached a new high. Copper, the “economy-titled metal,” jumped 7.1 percent. Iron ore gained 4.9%, tin 6.1%, zinc 5.7%, nickel 4.5% and Brent crude 4.1%.

US Stock Futures It initially plummeted this morning after Chinese health officials held a news conference to deny any changes to the nation’s strict zero-Covid policy. China will stick to its “proactive cleaning” approach, National Health Commission officials told reporters on Saturday.

Covid cases across the country hit a six-month high over the weekend. Apple announced a temporary reduction in production of the iPhone 14 due to restrictions at its assembly plant in Zhengzhou.

S&P 500 Futures it fell as much as 0.8 percent before narrowing its decline to five points or 0.13 percent ahead of a week that includes the US midterm elections and an inflation report.

winners circle

gold miners it outperformed as the yellow metal held onto most of Friday’s strong gains. The yellow metal jumped 2.8 percent on Friday. The metal was down less than 40 cents, or 0.1 percent, this afternoon, falling to $1,676.20 an ounce.

Capricorn Metals jumped 10 percent after upgrading the mineral resource at its Mount Gibson project northeast of Perth. Evolution Mining gained 6.97 percent, West African Resources 6.93 percent and Gold Road Resources 6.84 percent. Industry heavyweight Newcrest rose 4.2 percent.

Other good results were Domino’s Pizza +6.2 percent and Lifestyle Communities +3.82 percent.

A jump of 4.9 percent in Chinese iron ore Friday’s prices buoyed the big bulk metals companies. BHP rose 4.98 percent, Rio Tinto 3.75 percent and Fortescue Metals 4.85 percent.

Medibank rose 0.35 percent after declaring that it will not pay a ransom to cybercriminals behind the theft of customer data. The health insurer said she had been warned that paying a ransom could cause more harm than good.

“We believe that there is only a limited chance that paying a ransom will guarantee the return of our customer data and prevent it from being published. In fact, paying could have the opposite effect and encourage the criminal to directly extort money from our customers, and there is a strong possibility that paying will put more people at risk by making Australia a bigger target,” said CEO David Koczkar. .

financial technology Novatti jumped 43.24 percent after obtaining a banking license from the Australian regulator. The firm will launch the International Bank of Australia (IBOA) after its banking subsidiary obtained a license from APRA for a licensed restricted deposit-taking institution. The bank will partner with fintechs looking for “an innovative and agile banking partner,” said IBOA CEO Guy Carvalho.

Arafura rose 13.11 percent after signing a purchase agreement to supply rare earths to South Korean automakers Hyundai and Kia. Supply is expected to start in 2025.

Dog house

westpac it fell 3.94 percent after a full-year result clouded by write-downs and a contraction in margins. Cash earnings decreased 1 percent to $5.276 billion. Net interest margin fell 17 basis points, despite a rebound in the second half.

The bank increased its net profit by 4 percent to $5.64 billion. Shareholders will receive a final fully-fledged dividend of 64 cents per share.

ANZ decreased 4.59 percent as its shares traded without entitlement to its next dividend.

coal miner Crowned it plunged 7.05 percent after merger talks with US firm Peabody Energy ended without a deal. Coronado said ending the discussions would not affect his outlook for the fourth quarter.

suncorp decreased 0.43 percent on the news Severe weather events in Australia and New Zealand between July and October were expected to generate claims of at least $350-$410 million. The insurer said it had a comprehensive reinsurance program in place.

The launch of a second class action helped drag The star entertainment group it fell 2.01 percent. The new complaint alleges that the casino group made misleading representations about its anti-money laundering systems and compliance. The Star said it intends to defend the proceedings.

Burn treatment specialist Polinovo it fell 0.49 percent after announcing its launch in India.

other markets

Asian markets outside of China were also positive. The Asia Dow advanced 1.68 percent. Japan’s Nikkei rose 1.28 percent.

Oil undid part of Friday’s 4.1 percent rally. Brent crude fell $1.03, or 1 percent, to $97.54 a barrel.

the dollar returned some of its biggest advance in a single day in 11 years. The Australian dollar fell 0.13 percent to 64.3 cents on the dollar.

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