Positive lead from the US may push Asian stocks up today

<p>Asian stocks are set for gains today after suffering losses yesterday. There was a sharp turnaround in market sentiment in late US trading that might […]</p>

Asian stocks are set for gains today after suffering losses yesterday. There was a sharp turnaround in market sentiment in late US trading that might be viewed with caution among some traders so gains will be moderate. Italy’s rating downgrade after US markets close won’t help sentiment but this isn’t exactly a shock surprise.

We continue to watch commodity markets, base metals in particular, and now copper was again sold off on an attempt to rally. Lead took the largest losses, down by around 3.2%. The five largest energy and mining stocks in Australia contribute to just over 20% of the ASX200 Index.

Iron ore is overwhelmingly the largest earnings contributor to these mining stocks and will remain in close watch as Asian production volumes moderate.

In Australian corporate news, Telstra has secured a small win in its NBN vote with a key proxy advisor recommending shareholders accept the deal. There will be more interest surrounding Telstra’s $11 billion as the October 18 vote approaches.

More talk about Qantas this morning, as its market cap approaches $3 billion compared to a book value of around $6.2 billion. Many agree that the stock has upside once industrial issues are solved.

Interest around Mirvac after it successfully divested some industrial assets, realising a tidy profit. The deal shows an appetite for strategic Australian assets and the ability of local vehicles to book healthy returns, despite the market gloom.

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