Almost all of the Asian stocks, except of that of Japan, have seen an increase today. The regional benchmark gauge is actually heading towards the highest value within the last 2 weeks. The gains were mainly led by the Chinese shares. The China authorities announced that the total quota for foreign investment in this Asian country may be increased by 10 times and hence, it impacted the financial markets.
The Shanghai Composite Index increased by 3.1% today, marking its biggest surge since 14th December. On the other hand, the Hang Seng China Enterprises Index of the mainland shares which are traded inside Hong Kong saw a jump of 1.4%. The benchmark index of Hong Kong, Hang Seng Index also went ahead by 0.6%. It is currently at a level which is the highest since June, 2011. The benchmark gauge of Australia, ASX 200 increased by 0.2% despite the home-loan approvals in the country dropping to unexpectedly low levels in the month of November. The Kospi Index of South Korea also posted a gain of 0.5%. The Tawei Index of Taiwan also went ahead by 0.1%. The Straits Time Index of Singapore however went down by 0.3% as the latest curbs on the country’s property market dragged the developers to the lower side.
According to Nader Naeimi, the Head of Dynamic Asset Allocation Department of AMP Capital Investors, the investors are positive on the Asian equities because of the conducive environment. Nader added that as the Global leading indicators are shooting up and the interest rates are on the lower side as well, for short term basis, investors can make some good amount of profit.
The biggest listed stock brokerage of China, Citic Securities experienced a surge of 6.2%. Haitong Securities, the 2nd largest brokerage of China, also gained around 5.5%. The China Railway Group, on the other hand, recorded gain of 1%. The group reportedly has won contracts of total worth $4.8 billion. The biggest supplier of toys and clothes to retailers in the world, Li & Fund, however, experienced a slump of 15%. The company reported of a dropping operating income and this probably had led to the drops. The Developer CapitaLand also posted a decline of 5.1% as the Government announced of some additional property cooling measures to be undertaken. The day’s biggest gainers were mainly insurers and brokerages.