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Asian Equity Markets Rise on Chinese Economic Data

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The Asian and Pacific Rim equity exchanges are higher during the early morning hours on Monday after economic data showed that manufacturing activity in China expanded during the month of October.

In Japan, the Asian benchmark, the Nikkei 225 was up 1.56 percent, in Tokyo, the broader Topix index spike over two percent by late morning Hong Kong time. In South Korea, the Kospi composite index added over one percent.

Elsewhere in the Asian and Pacific Rim, the Australian S&P ASX 200 was up 0.45 percent.

In Hong Kong the Hang Seng index added 0.9 percent, and on the mainland in China the equity bourses were mostly higher. The Shanghai composite is up 0.3 percent and the Shenzhen component has risen 1.12 percent.

Asian Trader Monitor China’s Economic Data

Traders reacted positively to the private monthly Caixin/Markit manufacturing purchasing managers’ index (PMI) out of China. Manufacturing activity, in October, expanded by 53.6, which was above September’s number and the median expectation of 53.

Traders should note that in this type of data release, any reading above fifty (50) represents expansion.

This data follows China’s official manufacturing purchasing managers’ index (PMI), for October, came in at 51.4. This is released by China’s National Bureau of Statistics. This was just below the number of 51.5 seen in September.

Global Coronavirus News Worries Market Participants

Global coronavirus pandemic (Covid-19) news is worrisome. The United Kingdom, starting Thursday, will start a new nationwide lockdown. UK Prime Minister Boris Johnson, on Saturday, announced this news.

In the Eurozone, countries like France, Germany and Austria have also announced nationwide month long lockdowns as Italy and Spain have announced nationwide curfews.

Coronavirus infections continue to spike in the United States of America. The U.S. just reported a record setting 99,321 new Covid-19 cases on Friday. This as above the old record set the day before on Thursday.

On Tuesday, Americans head to the polls to determine who will sit in the White House for the next four years.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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