Markets lifted by Wall Street rally

POSITIVE NEWS: Workers at a car assembly line in Beijing. Despite falling for the second month, China's factory data was better than expected.


    Oct 02, 2015

    Markets lifted by Wall Street rally

    ASIAN markets extended their gains yesterday after taking their cue from the overnight rallies in global shares and shaking off China's lacklustre manufacturing data.

    Wall Street gained 1.47 per cent overnight yesterday as traders swooped in on battered stocks.

    Asian traders took the hint: Japan was up 1.92 per cent, South Korea edged ahead 0.84 per cent, Indonesia added 0.73 per cent and Malaysia gained 0.8 per cent.

    Singapore was not left out of the party with the Straits Times Index (STI) climbing 10.96 points, or 0.39 per cent, to 2,801.85.

    This was the market's second consecutive day of increases following five sessions of losses.

    Sentiment across the region was likely lifted by China's manufacturing numbers for this month, which beat forecasts slightly, although they still marked a decline for the second consecutive month.

    The Chinese markets were closed for the week-long National Day holiday.

    "The China readings were almost flat, not really an improvement, but a few people might have used the figures as an excuse to increase dollar-long positions with China closed today," Masashi Murata, currency strategist for Brown Brothers Harriman, told Reuters.

    "The big picture is still that the outlook for the global economy remains very subdued, mainly due to weak Chinese growth."

    Global markets have been turbulent for the most of the third quarter, rocked by fears over China's shrinking economy. The lack of clues over the timing of the United States Federal Reserve interest rate hike has also done little to help.

    The STI here was propped up by the three banks, led by DBS Group, which rose six cents or 0.37 per cent to $16.27. United Overseas Bank added five cents or 0.27 per cent to $18.60 while OCBC Bank advanced one cent or 0.11 per cent to $8.80.

    Property developer Hongkong Land Holdings also contributed positively, jumping 17 US cents or 2.6 per cent to US$6.78.

    Commodity plays were a mixed bag, with Golden Agri-Resources rising half a cent or 1.5 per cent to 33.5 cents and Wilmar International up two cents or 0.78 per cent to $2.59. Swiss mining giant Glencore also recovered further from a heavy selldown earlier this week.

    Trading firm Noble Group, on the other hand, slipped half a cent or 1.2 per cent to 41 cents.

    Outside of the blue chips, medical supplies group QT Vascular soared 4.9 cents or 53.8 per cent to 14 cents, after announcing on Wednesday night that it has successfully defended itself against a patent infringement lawsuit filed by AngioScore, another medical company.

    Total trade across the exchange was thin, with only about 1.19 billion shares worth $814.6 million changing hands.