Asian stocks rose for a fourth day today (November 12th) as Chinese shares rallied amid optimism for next week’s Shanghai-Hong Kong Stock Connect.
It is a pilot programme that links the stock markets in Shanghai and Hong Kong. Under the programme, investors in Hong Kong and mainland China can trade and settle shares listed on the other market via the exchange and clearing house in their home market.
"The opening of the share connect program next week has seen the Shanghai Composite surging to four-year highs," Evan Lucas, a market strategist at IG Ltd. in Melbourne, told Bloomberg. "This is unlikely to slow down, as the market gears up for the expected increase in trade and exposure to foreign funds."
Seoul rose 0.22 per cent to close at 1,967.27 and Hong Kong advanced 0.55 per cent to 23,938.18, while Shanghai put on one per cent to 2,494.48.
Tokyo added 0.43 per cent at 17,197.05, helped by ongoing rumours of a delayed sales tax. Investors are awaiting a November 17th report on Japan’s third-quarter economic growth, which will help the Japanese government decide on another sales-tax increase next year.
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