In Tokyo, the flagship Nikkei index closed with a rebound of 1.11%, to 38,474.90 points, and the broader Topix index finished up 0.76%, to 2664.26 points.
Asian stocks climbed cautiously on Tuesday awaiting the results of the US presidential election, Tokyo rebounding thanks to cheap purchases after its fall last week, while Chinese markets benefit from an encouraging indicator on the service activity.
Tokyo bounces back, session extended
In Tokyo, the flagship Nikkei index closed with a rebound of 1.11%, to 38,474.90 points, and the broader Topix index finished up 0.76%, to 2664.26 points.
For the first time in 70 years, the operator of the Tokyo Stock Exchange has changed trading hours. From Tuesday, the session closes at 3:30 p.m. local time (7:30 a.m.), half an hour later than before, in order to attract more foreign investors.
At the end of a long weekend due to a public holiday Monday, investors rushed to buy securities which had seen their prices plummet at the end of last week, after a cold snap on Wall Street, particularly in the technology sector, explained analysts at broker Iwai Cosmo.
Thus, the chip manufacturer Tokyo Electron rose sharply (+1.97%), after dropping almost 4% on Friday.
Entertainment giant Sanrio soared 12.82% after announcing a record quarterly profit, as it celebrates the 50th anniversary of the popular Hello Kitty character, for which it owns the rights.
However, “the market mood is one of wait-and-see before the outcome of the results of the American presidential election”, which opens later on Tuesday, noted the experts at Iwai Cosmo.
In the event of suspense, “operators should be faced with a growing feeling of paralysis: the market has already seen trading anticipating the victory of Donald Trump, and if (his Democratic rival) Kamala Harris were to win, it could be disrupted,” Tokai Tokyo experts abound.
The dollar weakens, oil stabilizes
Caution prevails on the foreign exchange market, with operators adjusting their positions in the face of better polls for Democratic candidate Kamala Harris in the race for the White House, after having long positioned themselves in anticipation of a victory for her Republican opponent Donald Trump, likely to inflate the United States’ debt and therefore the country’s bond yields.
Around 7:45 a.m., the Japanese currency strengthened against the dollar, at 152.34 yen per dollar.
For their part, oil prices are catching their breath, stabilizing after having jumped the day before in a market boosted by a weakened dollar, the threats made by the Iranian authorities against Israel and above all by a postponement of the increase in oil production. the OPEC+ alliance, likely to limit the supply of available black gold.
Around 7:45 a.m., the price of a barrel of Brent from the North Sea lost 0.12%, to $74.98. That of West Texas Intermediate lost 0.11% to $71.39.
A good indicator reinvigorates the Chinese stock markets
Around 8:00 a.m., the Shanghai composite index jumped 2.27% to 3,385.28 points, that of Shenzhen soared 3.18% to 2,047.27 points. In Hong Kong, the Hang Seng index rose 1.85% to 20,948.54 points.
The market welcomed an encouraging index for the Chinese economy published on Tuesday, according to which activity in services in China accelerated in October thanks to stronger supply and demand in concert. Crucial for the Asian giant, this sector, where hiring has consequently increased, includes tourism.
Enough to provide some relief to investors, before a parliamentary session which will ratify the details of the economic recovery plans announced by Beijing, still suspended following the American election.
“The two candidates display radically different positions in terms of economic and trade policy: the biggest shock for Asian economies will come from a victory for Trump, and his plan to drastically raise customs barriers,” noted analysts at the MUFG bank.
However, China, where the outlook remains gloomy against a backdrop of a persistent real estate crisis, “would face these new customs duties from a position of weakness,” they emphasize.
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