Asian Shares Rise On Diplomatic Efforts To Limit Gaza War

Asian Shares Rise On Diplomatic Efforts To Limit Gaza War

October 24, 2023

Asian stocks recovered some recent losses on Tuesday, with Japan and South Korea leading regional gains amid intense U.S. diplomacy aimed to prevent Israel’s war with Hamas spreading.

The dollar index was little changed in Asian trade and gold traded flat while oil prices inched up slightly after falling more than 1 percent on Monday following reports that the U.S. may ease sanctions on Venezuela.

Chinese markets eked out modest gains in cautious trade ahead of Wednesday’s GDP data and a looming repayment deadline for developer Country Garden.

China’s Shanghai Composite index edged up 0.32 percent to 3,083.50 while Hong Kong’s Hang Seng index climbed 0.75 percent to 17,773.34.

Japanese markets rallied on optimism about upcoming earnings. The Nikkei average jumped 1.20 percent to 32,040.29 after tumbling nearly 2 percent the previous day.

The broader Topix index closed 0.82 percent higher at 2,292.08. Tech stocks rebounded strongly, with Tokyo Electron, Screen Holdings and SoftBank Group climbing 2-3 percent.

Seoul stocks advanced as concerns over the Israel-Hamas conflict eased. The Kospi average settled 0.98 percent higher at 2,460.17, snapping a two-day losing streak.

Market bellwether Samsung Electronics rallied 3.1 percent and leading battery maker Samsung SDI added 2 percent.

Australian stocks rose, with banks and miners climbing ahead of the unemployment report due on Thursday. Earlier in the day, minutes of the RBA’s latest policy meeting showed further tightening of policy may be required to bring inflation to heel.

The benchmark S&P ASX 200 rose 0.42 percent to 7,056.10 while the broader All Ordinaries index closed 0.41 percent higher at 7,244.40.

Miner Rio Tinto rose 1.2 percent after reporting a higher-than-expected increase in copper production for the third quarter.

Across the Tasman, New Zealand’s benchmark S&P/NZX 50 index edged up 0.26 percent to 11,214.37, snapping a three-session losing streak after data showed consumer inflation in the country slowed to a two-year low in the third quarter.

U.S. stocks rallied overnight as earnings optimism helped outweigh concerns over rising bond yields and the ongoing war in the Middle East.

Investors shrugged off the New York Federal Reserve’s report showing worsening conditions within its region’s manufacturing sector in October.

The Dow advanced 0.9 percent, the S&P 500 climbed 1.1 percent and the tech-heavy Nasdaq Composite added 1.2 percent.

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