1 October is now the most watched date for China
MAINLAND CHINA & HONG KONG
Investors in China’s financial markets are betting the next two weeks will be a breeze.
That is down to expectations the government will not allow anything to overshadow its National Day on 1 October, when China is set to celebrate the 70th anniversary of the People’s Republic. History is on their side: In the month running up to the big anniversaries since 2004, the Shanghai Composite Index has added more than 4%. The yuan was stable in those periods.
Beijing, which tends to lend support to markets around significant dates or events, has already been showering traders with gifts in recent weeks. Policymakers have lifted barriers on foreign investment, cut banks’ required reserve ratio and set the yuan’s daily rate at a stronger-than-expected level for 16 days. The moves have helped stabilise the currency and make Chinese shares the world’s top performers.
While stocks slipped Wednesday (11 September), the Shanghai Composite is still up more than 8% over the past month. China’s markets will be closed Friday for a separate holiday.
Escalating tensions between the US and China have taken a toll on the country’s economy, with recent data showing exports fell 1% in dollar terms from a year earlier last month. The trade dispute is the main reason the Shanghai measure tumbled as much as 15% this summer and the yuan weakened past the 7.00 per dollar level for the first time in more than a decade.
Still, policy tweaks from the government and expectations the national team will ride to the rescue if necessary have helped the benchmark equity gauge close above the key 3,000 level for the first time since July. – Bloomberg News.
The Shanghai Composite Index fell 0.41% to 3,008.81 while the Hang Seng Index gained 1.78% to 27,159.06.
REST OF ASIA
Aides to Foxconn Technology Group founder Terry Gou visited Taiwan’s top election agency about the paperwork needed to wage an independent campaign for president, in the latest sign the billionaire is inching toward a run.
Gou’s spokeswoman, Evelyn Tsai, told reporters during a visit Tuesday (10 September) to the Central Election Commission in Taipei that she was inquiring about petition procedures. While she said Gou has yet to make up his mind, independent candidates must apply for petitions by 17 September for a chance to compete in the January election.
Speculation that Gou might mount an independent bid to unseat incumbent President Tsai Ing-wen has swirled since he lost a primary to run the opposition Kuomintang line to Kaohsiung Mayor Han Kuo-yu. A three-way race would inject new uncertainty into what was shaping up to be a showdown between contrasting visions of ties with China.
The polls show that a three-way election could be tight. The latest weekly tracking survey released Tuesday by a Hong Kong-based the Apple Daily newspaper showed Tsai leading with 33.7%, compared with 28.9% for Han and 25.6% for Gou.
Gou, who quit in June as chairman of Hon Hai Precision Industry Co Ltd, Foxconn’s main listed arm, built the company from a maker of television knobs into a global powerhouse that is now Apple’s biggest supplier and China’s largest private employer. Gou also has ties to the US President Donald Trump, meeting the US leader at the White House in May. – Bloomberg News.
Australia’s S&P/ASX 200 Index climbed 0.60% to 6,678.00 at the open on Thursday (12 September). It climbed 0.36% to 6,638.04 the previous session.
South Korea’s Kospi Index is closed 12-13 September for Chuseok holiday. It gained 0.84% to 2,049.20 the previous session.
The Taiwan Stock Exchange Weighted Index (Taiex) increased 0.34% to 10,790.35.
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