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Asia Markets: Chinese stocks continue to surge, as Asian markets await word on Australian interest rates

Asia Markets

Stocks in Shanghai, Shenzgen jump for second day after bullish articles by state media

A pedestrian walks past the Reserve Bank of Australia in Sydney.

AFP/Getty Images

Asian markets were mixed in early trading Tuesday, as investors awaited an interest-rate announcement by Australia’s central bank.

Japan’s Nikkei 225
fell 0.6% and Hong Kong’s Hang Seng Index
was about flat. A day after surging more than 5%, the Shanghai Composite
rose 1.2%, while the smaller-cap Shenzhen Composite
gained 2.4%. South Korea’s Kospi
declined 0.2%. Benchmark indexes in Taiwan
, Singapore
and Indonesia
bounced between slight gains and losses. Australia’s S&P/ASX 200
rose 0.6%.

On Monday, stocks soared in mainland China as state media announced the arrival of a bull market and urged investors to buy.

“It remains to be seen whether we see another repeat of the euphoria of the 2015 Chinese stock market rally, but it certainly seems like retail is happy to buy into it,” Stephen Innes, chief global markets strategist at AxiCorp, wrote in a note. “China’s army of retail investors seem to be perfectly able to look through the worrying Western media headlines of another global coronavirus record; instead, they are listening to the enthusiastic chorus from the nation’s influential state media, which are universally singing bullish from the same song page.”

Shares of Samsung Electronics
fell Tuesday after the tech giant projected a 23% gain in second-quarter profit, fueled largely by increased demand for memory chips.

The Reserve Bank of Australia was expected to make its decision on interest rates by mid-day. The central bank is expected to stay pat on rates, as business sentiment has improved amid Australia’s first recession in decades.

On Monday, stocks gained on Wall Street despite an increasingly worrying rise in coronavirus cases in the U.S. The Dow Jones Industrial Average
gained 459.67 points, or 1.8%, to close at 26,287.03. The S&P 500
climbed 49.71 points, or 1.6%, closing at 3,179.72 and booking its fifth straight sessions of gains, its longest streak since Dec. 17, according to Dow Jones Market Data. The Nasdaq Composite Index
surged 226.02 points, or 2.2%, to 10,433.65, finishing at another record high.

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