Asian stocks flourished thanks to RCEP

Asia’s auto and technology stocks soared on the first trading day of November 16 after the world’s largest trading alliance RCEP was established.

Mainland Chinese stocks “green floor” in the trading day 11/16. Photo: Shutterstock

The Regional Comprehensive Economic Partnership (RCEP), with the participation of Vietnam and 14 other member countries, was signed on November 15 and the set goal is to reduce tariffs on regional goods. field.

According to CNBC, the RCEP agreement establishes the largest trading area in the world without the participation of the US, but this is the first agreement to bring together three economic “superpowers” of East Asia, including: China, Japan and South Korea in the same trade cooperation alliance.

In a statement released this morning on November 16, Mizuho Bank rated the RCEP as “a belated but necessary lifeline for global trade”. “Achieving the RCEP and its ambitions, for example eliminating about 92% of tariff lines, will play an important role in strengthening supply chain linkages,” said Mizuho Bank.

Japanese stocks today increased strongly after the news that this country’s economy in the third quarter of 2020 increased dramatically by 21.4% over the same period last year. Compared to the second quarter, Japan’s economy grew by 5%, higher than the previous forecast of 4.4%. These are signs that Japan’s economy is on the way to recovery from the Covid-19 pandemic.

On the Japanese market, the Nikkei 225 index today close the door 2.05% increase to 25,906.93 while the Topix index reached 1,731.81 points, 1.68% increase. In South Korea, the Kospi index increased by nearly 2% to 2,543.03.

Shares of many large Japanese exporters today benefit from the signing of the RCEP agreement. Mazda shares outperformed the auto stocks with a 6.82 percent increase, followed by Honda and Nissan shares, up about 5 percent. Meanwhile, Mitsubishi shares up 2.54%.

On the Asian market, Technology stocks group also recorded rising waves. Shares of Tokyo Electron and Panasonic rose nearly 5%, while shares of technology group Softbank rose 1.83%. In Korea, Samsung Electronics increased 4.91% while SK Hynix shares soared 9%.

Green was also maintained on the mainland China stock market, with the Shanghai Composite Index up 1% and reaching 3,346.97, while the Shenzhen Component Index edged up 0.7% to 13,850.83.

The Chinese stock market today received positive information on the industrial production situation in September. Industrial production in September of this country increased. exceeded the forecast with the level increase 6.9%. TMeanwhile, retail sales in September continued to show signs of recovery, but the increase was not as expected because it was only 4.3%, instead of 4.9% as forecast.

On the Hong Kong market, the Hang Seng index edged up 0.58% this afternoon with the main pull from casino and finance stocks. Notably, Standard Chartered shares soared 4.8% while shares of HSBC rose 3.49%.

Stocks in Australia today suspended for almost the entire session and the cause is identified as “inaccurate market data”. The Australian Stock Exchange said this unit will resolve the above problem after tonight and trigger transactions as usual on November 17.

Overall, the MSCI Asia-Pacific Index (excluding Japan) rose 1.28%.

The US stock futures contract last night recorded mixed movements. The S&P 500 Index futures hit a new milestone with a week’s high of 2.2 percent, while the Dow Jones index futures also marked an intraday record gain of 4 percent. By contrast, the Nasdaq Composite Index futures pulled back after a slight 0.6 percent slide.

Investors’ sentiment continued to be strongly influenced by the Covid-19 developments in the US after the country recorded hospital admissions because Covid-19 continued to set a new peak on November 13. Many US states are activating new restrictions aimed at stopping the spread of the Covid-19 epidemic ahead of the Christmas holidays.

After a slump of more than 2% on November 13, oil prices on the Asian market this afternoon continued to go up. In which, Brent oil futures price increased 1.24% and reached 43.31 USD / barrel, while crude oil futures delivered by the US increased slightly with 1.47% and traded at 40.72 USD / barrel.

Money market today witnessed the greenback weakening. The US dollar index against other major currencies declined to 92,614, from 92.9 set at the end of last week. Japanese Yen appreciated and converted 104.46 JPY / USD, compared with 105 JPY / USD set last week, while the Australian dollar remained around 1 AUD / 0.7285 USD.