Robust Q2 Results Drive Australian Shares Upward, Boosted by Strong International Markets
Investing.com - The ASX 200 was trading 0.2% higher on Tuesday morning, largely influenced by an upbeat performance across international markets as encouraging statistics from China's manufacturing industry surpassed forecasts and provided a boost to Asian stocks. U.S. indices also experienced an uptick amid strong Q2 earnings results.
Last month witnessed an expansion in the stock market rally that included everything from small regional banks SPDR® S&P Regional Banking ETF (NYSE:KRE) to global tech giants, indicating traders' anticipation towards sustained strength in US economy.
Among commodities, Brent Oil Futures and Gold were both trading 0.1% and 0.7% higher, respectively.
Conversely, there was minor dip in Australian government bonds; Australia 2-Year yields were at 4.012% while Australia 10-Year yields were at 4.018%. US Treasury notes showed mixed results; with United States 2-Year yield was at 4.883% and United States 10-Year yields at 3.969%.
Meanwhile, The Aussie dollar made strides against USD overnight, moving forward from its previous close of 0.6646 to 0.6712.
Improved PMI Data Fuels Strong Performance in Asian Stock Markets
Asian stocks experienced a significant boost, primarily driven by better-than-anticipated manufacturing figures and initiatives from China's state planner designed to bolster consumption. The official Manufacturing PMI of China saw an unexpected improvement in July, rising to 49.3 from June's figure of 49.0 - an indicator of increased domestic demand as highlighted by Mizuho economists.
The surge was spearheaded by retailers and automobile manufacturers with Easyhome New Retail Group Co Ltd (SZ:000785), a furniture production company seeing a rise of 3.8% while Great Wall Motor Co Ltd (SS:601633) reported a gain of 4.9%. In addition, shares for property developers experienced growth following pledges from major Chinese cities such as Beijing and Shenzhen to enhance housing provisions for the public. Seazen Holdings Co Ltd (SS:601155) saw a rise of 0.9% whereas Gemdale Corp (SS:600383) recorded gains amounting to 2%.
The Shanghai Composite Index concluded at an elevated level closing up 0.5%, at 3291.04, while the tech-centric Chinext Price Index and Shanghai Shenzhen CSI 300 Index lifted 0.8% and 0.6% respectively.
Hong Kong’s stock market also reflected this upward trend owing largely to encouraging PMI data emerging out of China coupled with measures introduced aimed at supporting consumer spending patterns across the country.
On Japan's front, Nikkei 225 soared upwards, hitting record highs due mainly to impressive corporate results. Toyota Tsusho Corp. (TYO:8015) surged almost 10% after revising fiscal year net-profit forecasts, while Kansai Electric Power Co Inc (TYO:9503) gained nearly 4% after reporting Q1 net profits compared against losses incurred same time last year.