Asian markets kicked off the new week with a sense of optimism, with a 1.9% rise in the Hang Seng index and a 1.6% advance from the Nikkei. Europe was more mixed, with the Dax slipping back 0.2% but the FTSE 100 managing to plough ahead by 0.3% to 7,116.
Hong Kong was driven by a resurgence in tech stocks, as investors bought into the sector following a big sell-off earlier this year due to regulatory pressures on internet and education stocks.
Alibaba jumped 7.4%, extending its five-day run to 26%. Investors appear to be taking the view that all the bad news (and more) is already priced in, leaving these previous stock market darlings ripe for buying on cheaper ratings than seen in recent years.
Electronics group Panasonic was the biggest riser on the Nikkei, with automotive stocks also in fashion.
“The UK market was led by miners and energy stocks, with construction and gambling among the day’s losers,” said AJ Bell’s Russ Mould.
“This week sees US banks kick off their third quarter earnings season and expectations are high for those with investment banking operations, thanks to a boom in M&A activity.”
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