Asian Equities Extend Gains; China In Focus As Xi Set To Rule Beyond 2023
|Date | 26-02-2018 - 03:21 PM||Article Type | Stock Markets||Region | Asia|
Temple of Heaven in China
Investing.com - Asian equities extended their gains in the afternoon trade on Monday, extending a two-week rally.
The U.S. monetary policy is expected to garner some attention later this week when the Federal Reserve’s new Chairman Jerome Powell speaks before the House Financial Services Committee Tuesday and the Senate Banking Committee Thursday to give his first House testimony.
Mainland Chinese markets took centre stage today, as the Communist Party of China moved to remove presidential term limits that would allow president Xi Jinping to rule beyond 2023. The announcement of the move came on Sunday, one week before this year’s National People’s Congress which is set to open on 5 March.
“Emperor stocks”, whose stocks with “emperor” in their name, surged followed the news.
Temple of Heaven in China
Shenzhen Emperor Technology Co Ltd (SZ:300546) surged as much as 10% earlier today, while Anhui Yingjia Distillery Co Ltd (SS:603198), whose Chinese name translated to "greeting the emperor's carriage", was up almost 3%.
China’s home prices also received some attention as data out on Saturday suggested that the property market was steady in January but prices dipped in top tier cities, including Beijing, Shenzhen and Shanghai.
“The housing prices in tier-one cities reversed from growth to a decline and there was a slowdown in the growth rate in tier-two and -three cities,” said China Bureau of Statistics in a statement.
The Shanghai Composite and SZSE Component traded 1.38% and 2.08% higher respectively by 1:30am ET.
Meanwhile, Hong Kong’s Hang Seng Index also traded 0.78% higher. Automaker Geely Automobile Holdings Ltd (HK:0175) jumped 7.8% on reports that its chairman Li Shufu took a $9 billion stake in Germany-based Daimler. CLP and Hutchison Telecommunications are due to report their earnings later Monday.
Meanwhile, Japan’s Nikkei also extended its gain in the morning and closed 1.2% higher, with a weakening yen cited as a catalyst for the buying. Bank of Japan Governor Kuroda’s comment gathered some attention as he dismissed call to look into the reason why the central bank has failed to meet its inflation target. The economic calendar will be in focus later this week as a barrage of data is due, including retail sales and industrial production Wednesday, capital spending Thursday and unemployment and household spending Friday.
Down under, the S&P/ASX 200 also edged up and closed 0.71% higher. Bluescope Steel Ltd (AX:BSL)l surged 2.3% after the company announced a 23% jump in first-half net profit and a A$150 million share repurchase program. The steel sector was in focus today, as the U.S. president Donald Trump reportedly suggests 24% tariffs on steel imports.
Elsewhere, Samsung (KS:005930) grabbed the spotlight in Korea as it launched a new Galaxy S9 model to take on Apple’s iPhone X. The KOSPI traded 0.2% higher, as investors await Bank of Korea’s policy decision and briefing due Tuesday