Tokyo stocks surge after Japan Post jumps in trading debut - most impressive since Alibaba
Japanese stocks soared on Wednesday after Japan Post Holdings Co. jumped over 15% in its trading debut, while Chinese shares were elevated after upbeat data.
Chinese stocks were driven higher by the data which showed activity in China's services sector rose at its fastest pace in three months in October.
Released earlier in the session, the Caixin/Markit purchasing managers' index (PMI) rose to 52.0 in October from September's 14-month low of 50.5, hitting the highest level since July 2015.
Shares in China were also boosted by speculation that Chinese authorities will open a trading link between the two cities by year-end.
The Shenzhen Composite Index the smaller of the mainland’s two stock markets, gained 5.29%, while the Shanghai Composite Index was up 4.31%.
The gains come after China’s central bank published an article on its website Tuesday, citing Gov. Zhou Xiaochuan saying that China will unveil the Shenzhen-Hong Kong Stock Connect this year. Chinese markets stayed sharply higher, with the Shenzhen market closing near its highs of the day. That’s even after the central bank later clarified that Mr. Zhou had made the comments at a meeting in May.
In other news, President Xi Jinping said Tuesday the country's economic growth rate will not be less than 6.5 percent in the five years to 2020, according to a report by Reuters citing state-run Xinhua news agency.
Chinese firms in Hong Kong rose 3.2%, pushing the Hang Seng Index up 2.08%.
Hong Kong’s exchange operator, Hong Kong Exchanges & Clearing Ltd., was up 4.8%. Hong Kong-listed mainland brokerages also increased steeply, led by Shenwan Hongyuan (H.K.) Ltd., which gained 14%.
Japan’s Nikkei Stock Average rose 1.30%, as shares of state-owned Japan Post Holdings Co. and its financial units jumped more than 15% in their trading debut.
The initial public offering of the listings together make up the world’s biggest since the debut of Alibaba Group Holding Ltd. in September 2014.
Japan Post Holdings ended at 1,760 yen in its long-awaited market debut, 25.7 percent higher than the initial public offering (IPO) price of 1,400 yen. Meanwhile, Japan Post Bank jumped 15.2 percent to close at 1,671 yen, versus an IPO price of 1,450 yen, while Japan Post Insurance traded at 3,430 yen, significantly higher than its 2,200 yen IPO price.
Shares of Takata Corp. dropped 13% after the air-bag maker agreed to accept a $70 million fine and an outside monitor under a proposed settlement with the top U.S. auto-safety watchdog over reporting negligence involving rupture-prone air bags.
The Japanese gauge was also catching up with gains in most of the region on Tuesday, when Japan markets were closed for a holiday.
Australia’s S&P/ASX 200 climbed 0.07%, as signs of weakness in parts of the local economy eclipse a rally in energy stocks, which gained after an overnight surge in oil prices. The gauge had been up as much as 1.4% earlier Wednesday, but declined after data showed services-sector growth contracted in October.
South Korea’s Kospi was up 0.21%.
