What's Affecting Markets Today
Asia-Pacific markets delivered a mixed performance on Wednesday, reflecting Wall Street’s momentum, where the S&P 500 and Dow Jones Industrial Average reached fresh intraday and closing highs.
China’s industrial profits in October fell by 10% year-on-year, highlighting the ongoing challenges for corporate earnings despite Beijing’s recent stimulus efforts. The data underscores the difficulty in reversing the economic slowdown.
Traders also digested Australia’s latest inflation figures. The monthly consumer price index rose 2.1% in October from a year earlier, falling short of the 2.3% forecast by economists polled by Reuters. This marks a steady pace from September but a sharp decline from the 5.6% rate seen in September 2023, indicating easing inflationary pressures.
Hong Kong’s Hang Seng Index edged up 0.1%, while the CSI 300 in mainland China slipped 0.1%. Australia’s S&P/ASX 200 rose 0.6%. Japan’s Nikkei 225 and Topix declined by 0.7% and 0.8%, respectively. South Korea’s Kospi gained 0.1%, while the Kosdaq remained flat, reflecting subdued investor sentiment.
ASX Stocks
ASX 200 - 8,415.5 (+0.6%)
Key Highlights:
The Australian sharemarket advanced by afternoon, mirroring Wall Street’s rally to record highs. The S&P/ASX 200 Index rose 0.6% or 51.2 points to 8413.5, with gains across all 11 sectors. US markets were buoyed by a ceasefire between Israel and Hezbollah, with the S&P 500 reaching a new record.
Consumer discretionary led the ASX sectors, climbing 1%. Web Travel surged 12% after reporting an underlying half-year net profit of $52.5 million, just weeks after spinning off its consumer division. It was the ASX 200’s top performer. Harvey Norman gained 2.3%, Lottery Corporation added 1.6%, and Aristocrat Leisure rose 0.9%. The financial sector also strengthened, driven by Commonwealth Bank’s 1.1% gain.
Inflation data was a key focus, with Australia’s annual rate steady at 2.1% for October. Meanwhile, New Zealand surprised markets with a 50-basis-point cash rate cut to 4.25%.
Among small caps, City Chic Collective plunged 26% after flagging lower FY25 targets. Lynas rose 1.1% despite caution on rare earth prices, and HMC Capital rallied 2.7%, forecasting an 89% earnings jump.
Leaders
WEB WEB Travel Group Ltd (+12.88%)
OBM Ora Banda Mining Ltd (+6.77%)
360 LIFE360 Inc (+5.31%)
CAT Catapult Group International Ltd (+5.03%)
GMD Genesis Minerals Ltd (+4.32%)
Laggards
ERA Energy Resources of Australia Ltd (-16.67%)
VUL Vulcan Energy Resources Ltd (-8.78%)
SLX SILEX Systems Ltd (-4.20%)
GQG GQG Partners Inc (-3.93%)
YAL Yancoal Australia Ltd (-3.75%)
