Asian markets trade higher Singapore exports fall

Asian markets were higher as global risk appetite resumed. The MSCI Asia Pacific index was 1.8% by late afternoon trading in Tokyo. Around four stocks advanced for each one that declined. The index is building on recent momentum after booking a 3.4% rise last week, the best week since the end of March this year.

In regional economic news, Singapore’s exports unexpectedly fell in September as weakening expansion in the world’s biggest economies eroded demand for electronics and petrochemicals. Net exports excluding oil fell by around 4.5% compared to the same period last year. The market was expecting a decline, but the number was around 1% above the median estimate. Still, the rough patch may have passed with prospects improving for the next quarter.

All eyes will be on the U.S. session tonight and whether recent gains can be consolidated. Companies reporting Tuesday in the US include Coca Cola, Bank of America, Apple and Yahoo. Tonight Asian time will see the official industrial production figures released in the U.S., with the market expecting a modest 0.2% rise.

In Australia, Fortescue’s quarterly result is not outstanding but it also shows resilience in the business model as production numbers ramp up despite all the negative news around iron ore pricing.

The group admits it will experience some pricing pressure in the next half but is working hard at lowering costs – in turn insulating margins.

On first glance, we like what we see. Cash costs for the September quarter fell by 6% compared to the prior quarter, down to US$49.78. Production volumes were impacted in July but the run-rate is still in line with 55 million tonne per annum which will please the market.

StoneX Financial Ltd (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.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.