Traders shrug off China data as mar­kets rise

The Myanmar Times - - International Business -

ASIAN mar­kets mostly rose yes­ter­day but early gains were pared as deal­ers shrugged at news China’s econ­omy had sta­bilised in the third quar­ter.

News that China grew at 6.7 per­cent dur­ing July-Septem­ber, beat­ing a forecast in an AFP poll, came as re­lief fol­low­ing a years-long slow­down in the coun­try that has been a ma­jor drag on economies from Asia to the Amer­i­cas. An­a­lysts said there was lit­tle in the data to drive big moves and it would likely mean Bei­jing will hold off any fresh stim­u­lus mea­sures.

“China won’t do any­thing new in terms of pol­icy be­cause the econ­omy isn’t slid­ing,” Ben Kwong, a Hong Kong-based di­rec­tor at KGI Asia, told Bloomberg News. “Un­der these con­di­tions, the mar­ket doesn’t re­ally have a di­rec­tion. It needs to wait for news on US [in­ter­est] rates.”

Shang­hai ended flat and Hong Kong gave up 0.4pc. How­ever, Tokyo closed 0.2pc higher and Syd­ney – where sev­eral listed firms have in­ter­ests in China – rose 0.5pc. Seoul was slightly higher, Sin­ga­pore put on 0.2pc, Taipei added 0.7pc and Manila soared 1.8pc.

China’s yuan ben­e­fited from the data, climb­ing against the dol­lar for the first time in eight ses­sions.

The dol­lar strug­gled to re­cover from the pre­vi­ous day’s losses against the yen af­ter deal­ers were left unim­pressed by US in­fla­tion data that an­a­lysts said did noth­ing to strengthen the case for a US in­ter­est rate hike.

A be­low-forecast read­ing on pro­ducer in­fla­tion “was not suf­fi­cient to de­rail the prospects of a De­cem­ber Fed lift-off, but cer­tainly con­tin­ues to sup­port the grad­ual and flat pace of rate hikes into 2017”, Stephen Innes, se­nior trader at OANDA, said.

The dol­lar also suf­fered sell­ing against most Asia-Pa­cific cur­ren­cies, with the South Korean won up 0.6pc and In­done­sia’s ru­piah gain­ing 0.1pc. There were also gains for Thai­land’s baht and the Malaysian ring­git.

Forex traders will be keenly fol­low­ing a Euro­pean Cen­tral Bank meet­ing today af­ter re­cent spec­u­la­tion it is con­sid­er­ing ta­per­ing its vast stim­u­lus. De­spite the chat­ter, some an­a­lysts ex­pect it to main­tain its eas­ing pro­gram and pos­si­bly flag fresh mea­sures in De­cem­ber.

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