Asian and Pacific Rim equity and financial markets spiked higher early Monday morning. Regional traders were cheering a recently signed mega trade deal signed by fifteen countries in the region.
This Asian area trade deal is the largest world trade alliance. Australian markets briefly poised trading just after the opening bell.
In Japan, the Nikkei 225 was up 1.59 percent and in Tokyo, the broader Topic index was trading up 1.37 percent during the morning.
Japanese economic data showed their economy rebounding sharply in the third quarter as their gross domestic product expanded by 21.4 percent. On a quarterly basis, their economy grew by five percent. This was above the forecast of 4.4 percent.
In South Korea, the Kospi composite index was up over 1.5 percent and elsewhere in the Asian and Pacific Rim, the ASX 200 was up over 1.2 percent.
The Australian Securities Exchange halted stock trading shortly after the open, citing “market data issues.” The regulatory body also said that they are “working to rectify the issue as soon as possible.”
In Hong Kong, the Hang Seng index was up a modest 0.4 percent as casino and financial stocks led the way higher.
On the mainland in China, the exchanges were mixed during the morning hours. The benchmark Shanghai composite up 0.36 percent and the Shenzhen component was down 0.48 percent. Traders are waiting on monthly industrial production and retail sales data.
Asian Traders Cheer the New Regional Trade Deal Signed this Weekend
Regional traders in the ASEAN region were happy with the new trade pact signed over the weekend. This boosted sentiment and switched risk on sentiment throughout the area. The trade deal that was signed on Sunday, will gradually reduce trade taxes across many nations.
The newly agreed to “Regional Comprehensive Economic Partnership” is now the world’s largest trade bloc. It excludes the United States. This is the first time that countries like China, Japan and South Korea have ever been part of a trade deal.