BANGKOK — Asian stocks generally rose on Thursday, buoyed by positive earnings reports from notable U.S. companies such as Morgan Stanley and United Airlines. This uptick followed a rally in the American market, which saw gains across various sectors.
Chinese shares also saw an increase after government officials in Beijing declared plans to expand financial support for housing projects. This initiative aims to address a downturn in the property market, which has been impacted by a government crackdown on excessive borrowing by developers.
In Hong Kong, the Hang Seng index experienced a 0.9% increase, reaching 20,460.86, while the Shanghai Composite index rose slightly by 0.1%, to 3,205.95.
China is set to release economic growth statistics for the second quarter on Friday, and economists predict an annual growth rate of around 4.5%, which falls short of the government’s target of approximately 5%.
Chinese leaders have committed to introducing more measures aimed at invigorating the economy; however, concrete plans that would sufficiently address longer-term challenges—such as significant local debt and sluggish consumer spending—have yet to emerge.
According to analysts from ANZ Research, the measures introduced thus far appear to function as a “bailout,” supporting a gradual recovery rather than providing a quick, significant rebound. They indicated that the lack of a pronounced shift in housing policy may not stimulate extensive investment in real estate. Nonetheless, they acknowledged that the credit injection package could effectively mitigate financial risks and alleviate liquidity issues faced by developers, potentially avoiding a subprime crisis in China.
In Japan, the Nikkei 225 index fell by 0.6%, reporting at 38,950.18 after the government disclosed a 1.7% decrease in exports year-over-year for September, which widened the nation’s trade deficit.
Other Asian markets showed mixed results, with South Korea’s Kospi decreasing by 0.2% to 2,606.23. On the contrary, Australia’s S&P/ASX 200 climbed 0.6% to 8,337.60. Taiwan’s Taiex index rose by 0.3%, while India’s Sensex index declined by 0.3%. Meanwhile, in Thailand, the SET index posted a 0.7% gain following a recent interest rate cut by the central bank, which lowered it by a quarter-point to 2.25%.
On the previous day in the U.S., the S&P 500 index rose by 0.5%, closing at 5,842.47, rebounding from its previous decline. The Dow Jones Industrial Average set a record by climbing 0.8% to 43,077.70, and the Nasdaq composite increased by 0.3% to 18,367.08.
Morgan Stanley saw a substantial rise of 6.4% after posting quarterly profits that exceeded analyst estimates. According to CEO Ted Pick, the investment bank benefited from a favorable global business climate and was managing a larger volume of client assets due to high stock prices.
United Airlines surged by 12.4%, credited with a smaller-than-expected decline in summer profits and announcing plans to allocate up to $1.5 billion to shareholders via stock buybacks. J.B. Hunt Transport Services also rose by 3.1% after reporting results that surpassed expectations.
The energy sector remained relatively stable, with Exxon Mobil, for example, increasing by 0.3% a day after experiencing significant losses. The sector has been responding to fluctuations in oil prices, which have recently dipped due to easing worries about possible Israeli military actions against Iranian oil facilities as retaliation for an earlier missile strike. Concerns about diminishing demand tied to China’s slow economic growth have also affected oil prices.
During electronic trading on the New York Mercantile Exchange early Wednesday, U.S. benchmark crude oil saw a slight increase of 21 cents, reaching $70.60 per barrel. Meanwhile, Brent crude, the global standard, added 19 cents, bringing it to $74.41 per barrel.
In currency markets, the dollar slipped to 149.48 yen, down from 149.64 yen. The euro also fell slightly, changing hands at $1.0858 after being at $1.0862.
