SINGAPORE — Asia markets bounced on Monday morning as 15 economies in the region signed a deal that formed the world’s largest trade alliance. Australia, meanwhile, halted trading shortly after markets opened.
The trade deal, signed on Sunday, aims to gradually reduce tariffs across many areas, according to Reuters. The Regional Comprehensive Economic Partnership is now the world’s largest trade bloc, a deal that excludes the U.S. It marks the first time that East Asian powers China, Japan and South Korea are in a single trade agreement.
In Japan, the Nikkei 225 gained 1.59%, while the Topix was up 1.37%.
Japan’s economy rebounded sharply, growing an annualized 21.4% in the third quarter, data showed on Monday. On a quarterly basis, the economy grew 5%, better than forecasts of 4.4%, according to Reuters, and a sign that the country was recovering from the damage caused by the pandemic.
Mainland Chinese stocks were mixed in early trade. The Shanghai composite rose 0.36%, while the Shenzhen component was down 0.48%. In China, a set of economic data is due to be released, including industrial production and retail sales.
Hong Kong’s Hang Seng index rose 0.43% in early trade. Casino and finance stocks listed in the city were going strong. Standard Chartered was up 3%, while HSBC bounced 2.8%.
Over in Australia, the Australian Securities Exchange halted stock trading shortly after the open, citing “market data issues.” The exchange said it is “working to rectify the issue as soon as possible.”
The S&P/ASX 200 had made gains in early trading, last jumping 1.23%.
In a note on Monday morning, Mizuho Bank had called the giant trade agreement a “much-(needed) and overdue life-line for global trade.”
“The reach and ambitions of the RCEP, looking to abolish some 92% of traded goods tariffs, would be critical in deepening supply-chain linkages,” it said.
Autos, tech stocks soar
Japan’s exporters made major gains in the morning on the back of the trade deal news.
Autos in Japan mainly benefited, with Nissan rising 2.79%, and Mazda soaring 6%. Mitsubishi jumped more than 4%, and Honda gained 3.77%.
Tech stocks in the country also gained. Tokyo Electron jumped 5.45%, while Panasonic soared 5.25%. Softbank Group was up more than 1%.
Tech stocks listed in South Korea also jumped. Samsung Electronics was up 3.64% and SK Hynix rocketed more than 6%.
Vaccine, virus remain in focus in the U.S.
Over in the U.S., stock futures rose on Sunday night after the S&P 500 posted a record closing high on Friday and notched a one-week gain of 2.2%. The Dow rallied more than 4% last week and briefly hit an intraday record. The Nasdaq Composite lagged, however, sliding 0.6%.
Coronavirus cases stateside are surging again, with the U.S. reporting a record-high number of people hospitalized with Covid-19 on Friday. More states are rolling out fresh restrictions to slow the spread of the virus ahead of the holiday season.
“In the US virus cases and vaccine news remain front and centre together with any development on the likelihood of a fiscal stimulus package during the lame duck Congressional session,” Ray Attrill, head of foreign exchange strategy at the National Australia Bank wrote in a Monday note. “Vaccine news will also be watched closely with Moderna expected to report Phase 3 results and Pfizer/BioNTech potentially applying for an emergency use authorisation by the end of the week.”
Currencies and oil
The U.S. dollar index, which tracks the greenback against a basket of its peers, was a touch weaker at 92.623 after declining from levels above 92.9 late last week.
The Japanese yen traded at 104.61 per dollar, after strengthening from levels above 105 late last week. The Australian dollar was relatively unchanged, trading at 0.7291 against the dollar.
TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.
The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.
Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.
Consolidated comparable sales were up 0.3 per cent.
On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.
The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.
The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.
Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.
Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.
On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.
The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
TORONTO – Thomson Reuters reported its third-quarter profit fell compared with a year ago as its revenue rose eight per cent.
The company, which keeps its books in U.S. dollars, says it earned US$301 million or 67 cents US per diluted share for the quarter ended Sept. 30. The result compared with a profit of US$367 million or 80 cents US per diluted share in the same quarter a year earlier.
Revenue for the quarter totalled US$1.72 billion, up from US$1.59 billion a year earlier.
In its outlook, Thomson Reuters says it now expects organic revenue growth of 7.0 per cent for its full year, up from earlier expectations for growth of 6.5 per cent.
On an adjusted basis, Thomson Reuters says it earned 80 cents US per share in its latest quarter, down from an adjusted profit of 82 cents US per share in the same quarter last year.
The average analyst estimate had been for a profit of 76 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
