Asian bourses made substantial gains on the back of upcoming Japanese elections and China’s rate cut.
As the yen falls further, so stocks are increasing with exports high from Japan. The Japan225 [Nikkei] swelled further to achieve 17915.06 overnight from 17756.59. Japan’s elections are only 10 days away and polls are making it clear that Prime Minister Shinzo Abe will be elected for another term. This political stability has allowed companies to plan and stocks to stabilize giving investors the confidence they need to support the indices.
MT4 chart: Japan225
In the meantime, China’s shares have risen to 2-year highs with the Shanghai Composite achieving its largest one-day gain since December 2012, up by over 4%. This has led Asian-wide bourses on a positive path with Chinese stocks on the HongKong45 [Hang Seng] pushing the index higher over one day from 23349.50 to 23963.50. Chinese companies with shares on both the Hong Kong and Shanghai exchanges are now up by an average of 13.9%.
MT4 chart: HongKong45
In the Australian market stocks also climbed with the Sydney200 [ASX200 Australia] seeing a jump this week from 5182 to 5381. Data this week showed that expansion in Australia had slowed with GDP q/q at 0.3%, down from the forecast of 0.7% and the previous quarter figure of 0.5%. However with AUDUSD falling to its lowest since 2010, stocks are benefitting.
MT4 chart: Sydney200
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