Another strong day in Asian markets; Aussie gains further against USD

<p>Asian markets have had yet another strong day of gains led by Hong Kong’s Hang Seng which was trading up nearly 1% at 24,351. The […]</p>

Asian markets have had yet another strong day of gains led by Hong Kong’s Hang Seng which was trading up nearly 1% at 24,351. The telecommunications sector was the standout performer on the Hong Kong bourse rising 2.5%.

Cosco Pacific Limited was up 3% at 15.36 on the back of broker upgrades by DBS Securities. Aluminium Corp of China rose for a second day gaining 2.9%.

The Nikkei 225 was also up today trading at around the 10,540 level. Mitsui Mining and Smelting Co was up more than 6% as commodities prices rose across global markets. Sumitomo Metal was also a beneficiary of stronger commodities prices rising nearly 5%.

In Australia, the local stock market entered another strong day, with the All Ords pushing above the 4900 level.

It seems that all the stars are aligning today. Everything is up – commodity prices have been strong (last night), US indices were up, share prices and even the Aussie dollar is up today.

We saw commodity prices trading strongly in Europe last night and this pushed our miners higher today.

At the same time banking stocks have been oversold the past few days, so are seeing some rebound on this sector. Macquarie Group has been leading the charge among financial stocks and it’s been up another 1.9 per cent today.

Traders and investors are just buying everything today. Risk appetite and confidence have definitely improved and we saw across the board strength though it was the miners and the bank stocks that were leading the way today.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.