Chinese President Says Current Economy Not Scary

Shares in Hong Kong and China rallied on Monday on news of the approval of the Shanghai-Hong Kong Stock Connect, which will connect the Hong Kong and Shanghai stock exchanges.

Hong Kong’s Hang Seng index closed up 0.83%, or 194.46 points, at 23,744.70.

In China, the benchmark Shanghai Composite index finished 2.3% higher at 2,473.67.

Also in China, data showed that annual price inflation in October was 1.6%, near a five-year low.

The figure was unchanged from September and was in line with market expectations.

Elsewhere in the region, South Korean shares rallied with the Kospi index up 0.9% at 1,958.23 on news of an impending free trade agreement with China, its largest trading partner.

Blue-chip exporters led the rally with Samsung Electronics up 5.1% and Hyundai Motor 2.8% higher.

Japan’s Nikkei closed down 0.8% to 16,752.04 after hitting a one-week low.

The benchmark’s shares fell to as low as 16,713.37 on Monday – its weakest level since 31 October.

The yen traded at 114.45 to the dollar, strengthening from the seven-year low of 115.60 yen it hit on Friday.

Shares of NTT tumbled by more than 6% to a two-week low after the telecommunication company cut its full-year operating profit outlook due to a weak mobile phone business.

Australian shares were lower on profit taking. The benchmark S&P/ASX 200 index closed down 0.5% at 5,524 points.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza