Chinese stocks inched up by the yuan


Green was the dominant color on Asian stock markets in the morning session of September 18 after the recent appreciation of the yuan.

The Shanghai Composite Index rose 0.31% in the morning session of September 18.  Photo: AFP
The Shanghai Composite Index rose 0.31% in the morning session of September 18. Photo: AFP

Mainland Chinese stocks opened this morning in green. Specifically, the Shanghai Composite index rose 0.31% at the beginning of the session while the Shenzhen Component rose 0.121%. On the Hong Kong stock exchange, the Hang Seng index also increased slightly.

In Japan, the Nikkei 225 increased by 0.24% while the Topix index also recorded a corresponding increase of 0.25%. South Korea’s Kospi index rose a modest 0.1%.

Australian stocks reversed the regional market when the S & P / ASX 200 index slipped slightly. Overall, the MSCI Asia-Pacific Index (excluding Japan) rose only 0.07%.

Notable information on the Asian market this morning is the shares of the world’s leading glove manufacturer Top Glove (Malaysia) soared 4%. Previously, the company forecasts that profit after tax in fiscal year 2020 will rise to 417% year-on-year. In a recent press release, Top Glove explains the company’s super speed growth is due to the spike in demand for gloves around the world during the Covid-19 era.

The complicated developments of the Covid-19 epidemic continued to weigh on investor sentiment. Director of the World Health Organization (WHO) in Europe, Mr. Hans Klug, on 17/9 warned the disease situation in Europe becomes “very serious”. “The weekly number of infections is now higher than when the Covid-19 epidemic peaked in March,” Klug said at a press conference on the Covid-19 epidemic in Europe.

Shares of many Asian technology firms were mixed this morning due to pressure from Wall Street. In Japan, Softbank Group’s “heavyweight” shares lost 1.13% while Sharp slipped 0.45%, while the Korean market recorded Samsung Electronics inching up 0.34% and Kakao shares rising. 0.54%.

All three major US stock indexes last night were “fiery red”. The tech-oriented Nasdaq Composite fell 1.3% to close at 10,910.28 points. Nasdaq Composite also fell into the correction zone and fell 10% from the highest level in trading history. Meanwhile, the Dow Jones industrial average last night broke the chain of 4 consecutive winning days after falling 130.40 points (or 0.5%) to 27,901.98, while the S&P 500 index closed. session down 0.8% to 3,357.01 points.

In the currency market, the recent yuan’s volatility has attracted special attention from investors. Yuan strengthened significantly against the greenback and traded 6.7531 CNY “eat” 1 USD, compared with 6.81 CNY / USD set last week. The yuan in overseas transactions reached 6.7514 CNY / USD.

“When the US dollar weakens, the yuan is back,” said Alex Wolf, Head of Asia Investment Strategy at JPMorgan Private Bank, a private bank. “Mhere come cWe have only seen a strong appreciation of the yuan, ”said Wolf, predicting that the currency will continue to strengthen in the near future.

Meanwhile, the US dollar this morning devalued. The US dollar index against other major currencies fell from 93.3 to 92,874. Japanese Yen strengthened and converted 104.69 JPY / USD compared to 105.5 JPY / USD set at the beginning of the week, while Australian dollar exchanged 1 AUD for 0.7314 USD, still in the usual fluctuation range. from 1 AUD / 0.729 – 0.732 USD.

Oil prices on the Asian market this morning were quite quiet. The price of Brent crude oil and US crude oil delivered in futures fluctuated around 43.18 USD / barrel and 40.87 USD / barrel respectively.

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