Asian Stock Markets Recover, US Shares Still Down

Market Reviews

Canadian Dollar is the strongest one so far today, followed by British pound and US dollar. Japanese yen is the weakest one again for today, followed by New Zealand dollar and Australian dollar. Euro remains firm versus Us dollar, hitting a fresh weekly high at 1.1611. For the week, however, Canadian dollar is the weakest one followed by US dollar. New Zealand dollar, Japanese yen and Australian dollar are the stronger ones.

Asian markets recover today, despite the US markets tumbled for another day overnight. Nikkei gained 0.46%. Singapore Strait Times rose by 0.72%. Hong Kong HSI increased by 1.82%. China Shanghai SSE rose by 0.86%. Overnight, DOW lost 2.13% or 545.91 pts to 25052.83. S&P 500 fell by 2.85% and NASDAQ dropped by 1.25%.

The IMF downgraded Asia growth forecasts for 2019, including Australia, Hong Kong, Korea, Singapore, China, India, due to financial market stress and trade tensions. Overall Asian growth is projected to be at 5.6% in 2018 and 5.4% (downgraded by -0.2%) in 2019. For 2019, four of the seven advanced economies got growth projections downgraded, including Australia at 2.8% (-0.3%), Hong Kong 2.9% (-0.3%), Korea 2.6% (-0.3%), Singapore 2.5% (-0.2%). Taiwan got an upgrade to 2.4% (+0.4%), so did New Zealand at 3.0% (+0.1%). Japan’s forecast was unchanged at 0.9%. Overall emerging Asian economies was downgraded to 6.3% (-0.3%) in 2019. China’s growth was downgraded to 6.2% (-0.2%), India to 7.4% (-0.4%).

China’s exports rose by 14.5% in September from a year earlier and showed the fastest pace since February. The indicator was above August's 9.8% and economists’ forecast of 8.9% gain. Imports rose 14.3% in September, versus a 19.9% gain in August, slightly missing analysts' forecast of a 15.0% growth.

China’s trade surplus with US jumped to record high at USD 34.1B. In USD terms, China’s trade surplus widened to USD 31.7B in September, well above expectation of USD 19.4B. In September, exports to US rose 5.2% mom, 14.0% yoy to USD 46.7B. Imports from US dropped by 5.8% mom, -2.3% yoy to USD 12.6B.