Philippines, India led decline in ishares.
According to IG SG Daily, Indian equities were another area that started off strong, after the RBI eased liquidity by cutting the marginal standing facility rate to 9%. However, the rally ran out of steam towards the end of the trading day and ended with a modest gain of 0.4%.
The buoyant sentiment in Asia was not mirrored in the European or US sessions. US investors moved away from risky assets across the board. Asian ETFs felt the brunt of this exit, with selling continuing for a second day with ishares Philippines and India leading the decline, down 2.5%.
Asian and commodity markets yesterday held strong with China coming back online after a week-long holiday. Prices ran up in the Chinese and Hong Kong equity markets yesterday, led by retailers ‘ strong retail sales figures during the National day holiday.
The commerce department reported that retail and catering sales in China grew 14% during the week holiday, to $142b. The Chinese consumer buying frenzy is evident in the HK Sotheby’s auction where they made headlines for record sales of rare diamonds, artworks and artefacts, raising approximately 20% more than their initial target of $540m. Commodities such as industrial metals, copper and steel futures moved higher on the basis that traders are likely to start buying after the holidays.
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