Asian Stocks Mixed As China GDP Hits Forecasts,NZ Gets New Govt
- Asian stocks ended mixed again although Nikkei bulls are still running
- Hong Kong stocks took a big hit on a variety of worries
- New Zealand is to get a new coalition government after days of wrangling
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Asian stocks were mixed Thursday as investors digested economic data out of China and news of a new government for New Zealand.
Official Chinese growth data for the third quarter came in exactly as expected, if a little softer than last year’s. Other numbers, such as industrial production and retail sales, were robust, but Shanghai and Hong Kong stocks could not hold on to gains. The same can’t be said for the Nikkei which extended its winning run to 13 straight sessions, the longest streak of green for 30 years, despite Japanese imports and exports just missing forecasts. The Tokyo benchmark ended up 0.4%, with Australia’s ASX 200 just 0.02% higher at the close. The latter had been higher earlier after strong local labour-market data boosted rate-hike bets.
Hong Kong stocks slumped nearly 2% with traders reportedly citing risks of Chinese delveraging and rising interbank rates in the territory.
The US Dollar hit two-week highs against the Japanese Yen, boosted by rising US yields and the increasing suspicion that incumbent Japanese premier Shinzo Abe will be returned with a working majority at this weekend’s election. The New Zealand Dollar slipped following news that the Labour Party would be the largest member of a new coalition government. The nationalist New Zealand First party gave its allegiance to Labour after long negotiations. Kiwi bulls would have preferred a government led by the formerly incumbent National Party.
Still to come Thursday we look forward to UK retail sales numbers along with initial and continuing jobless claim data out of the US. The Philadelphia Federal Reserve’s business outlook is coming up, along with the leading indicators.
--- Written by David Cottle, DailyFX Research
Contact and follow David on Twitter:@DavidCottleFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.