Asia-Pacific stocks rise ahead of U.S. midterm elections, more economic data ahead

Soegeefx AppsAsia MarketAsia-Pacific stocks rise ahead of U.S. midterm elections, more economic data ahead

Jihye Lee

Shares in the Asia-Pacific rose early Monday as investors digest the latest U.S. jobs report and look ahead to the midterm elections.

The Nikkei 225 in Japan was 0.75% higher and the Topix also gained 0.75%. In South Korea, the Kospi was up 0.86%. The S&P/ASX 200 traded 0.43% higher in Australia.

MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.4% higher.

China is slated to release trade data later in the day, while Apple suppliers in the region will be in focus as the company warned Covid restrictions in China are hurting iPhone production.

Rising risk appetite soared on Friday with speculation of “conditional” plans for a reopening in China, while officials renewing its stance of sticking by strict measures is seen to dampen market sentiment.

.N225 Nikkei 225 Index *NIKKEI 27404.51 204.77 0.75
.HSI Hang Seng Index *HSI 16161.14 0 0
.AXJO S&P/ASX 200 *ASX 200 6921.4 28.9 0.42
.SSEC Shanghai *SHANGHAI 3070.8 0 0
.KS11 KOSPI Index *KOSPI 2362.97 14.54 0.62
.FTFCNBCA CNBC 100 ASIA IDX *CNBC 100 6991.2 45.78 0.66

U.S. and European markets rose on Friday on hopes the Federal Reserve would scale back future interest rate hikes following the latest jobs report, which marked the slowest pace of job gains since December 2020 despite stronger-than-expected growth.

China reopening still ‘months away’ despite talk of preparations: Goldman Sachs

Speculation of China’s reopening led to a rally in markets last week, but economists at Goldman Sachs say that it’s still “months away.”

“The actual reopening is still months away as elderly vaccination rates remain low and case fatality rates appear high among those unvaccinated based on Hong Kong official data,” economists led by Hui Shan said in a note.

They added that the government is probably working on an exit strategy, and that the firm expects the country to reopen in the second quarter of 2023.

— Jihye Lee

Apple says iPhone production temporarily reduced because of Covid-19 restrictions in China

Apple said iPhone 14 production has been temporarily reduced because of Covid-19 restrictions at its assembly plant in Zhengzhou, China, according to a statement Sunday.

The warning could mean the tech company may struggle to meet demand in December as it deals “significantly reduced capacity” at the plant. The company has previously signaled slowing growth in its iPhone business in its earnings report last month.

The warning from Apple comes as China in the past week ordered lockdowns in Zhengzhou, where Apple does the majority of its iPhone production. According to Reuters, employees have fled the facility because of Covid restrictions and outbreaks.

— Sarah Min, Kif Leswing

Source : CNBC

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