China Stocks Drive Asia Higher, ASX Bucks the Trend

China Stocks Drive Asia Higher, ASX Bucks the Trend

31 May 2016, 05:49
Roberto Jacobs

China Stocks Drive Asia Higher, ASX Bucks the Trend

The stocks on the Asian indices caught a renewed bid-wave and jumped higher, mainly driven by a sudden rise witnessed in the Chinese equities. While the Australian stocks ditched their Asian counterparts and traded in the red, despite upbeat Aus data dump.

China’s stock markets rallied on news that Index operator MSCI Inc. will start including American Depository Receipts (ADRs) of Chinese shares in its stock gauges as of Tuesday’s close. While fresh selling seen in the Japanese yen lifted the Japanese exports-oriented shares on the region’s indices.

China stocks jump over 2%

The Japanese benchmark index, the Nikkei 225 now rises +0.49% and hovers around 17,400 levels as USD/JPY revisits daily highs at 111.16 as investors await key details on the JP sales tax issue from the Komeito Party (Abe's LDP coalition partner).

 Australia’s ASX 200 index drops -0.25% higher, as markets completely ignored upbeat Australian exports and building consents data, which added to a stronger Aus GDP print due to be reported tomorrow.

While the Chinese equities are seen trading extending into the green zones, with the benchmark Shanghai Composite index now gains +2.25%, the CSI300 index is also up +2.43%. Hong Kong Hang Seng rises +1.37% to 20,915 points.


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