FXStreet (Mumbai) - Stocks on the Japanese and Chinese indices traded on a firmer note, while rest of Asia had a weaker start to a fresh week ahead. Markets continue to absorb the recent impressive US jobs data while on the other hand weigh the weak Chinese trade data released over the weekend.
Australian stocks decline on poor China data
The Japanese stocks extend their upward trajectory on Monday, tracking the positive close on the Wall Street last Friday. However, the main driver for the rally in Japan’s indices is the broad yen weakness. USD/JPY trades above 123 handle, the highest levels since August, driving the exports’ stocks through the roof. Meanwhile, the Nikkei advances over 2% to 19,678.
The Australian benchmark, the S&P/ASX bucks the trend and drops -1.81% to 5,120, as sentiment soured on dismal Chinese data. Moreover, heavy losses in the mining and resource stocks also dragged the index lower. Gold prices fell to three-month lows at $ 1085 after the crucial US jobs data surprised on the upside on Friday and almost confirmed a Dec Fed rate rise.
While the Chinese indices rallied, completely ignoring weak trade data from Chine released on Sunday. Chinese imports tumbled 18.8% y/y in October, against a 15.2% drop expected. Exports fell 6.9% over the same period, more than double the pace expected. The mainland’s China’s Shanghai Composite (SSEC) index, rallies 1.74% at 3,652. Hong Kong’s Hang Seng trades 0.25% higher at 22,924 while China’s A50 index advances 2.85% to 11,158.
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