ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Nikkei Markets

Asian stocks rise amid monetary policy easing bets

SK Hynix jumps after third-quarter profit beats expectations

HONG KONG (Nikkei Markets) -- Asian stocks outside of Japan ended higher on Thursday, as lingering hopes of accommodative monetary policy supported investor appetite.

The Nikkei Asia300 Index rose 0.3% to 1,292.75.

Investors are looking ahead to the U.S. Federal Reserve's policy review next week, where the central bank is widely expected to deliver its third rate cut for the year. The People's Bank of China, meanwhile, has boosted liquidity with reductions to banks' required reserve ratios.

The moves come as a bruising trade war between the world's two largest economies started impacting global growth. The International Monetary Fund on Wednesday slashed its economic growth forecast for the Asia-Pacific region to 5% in 2019, from an earlier estimate of 5.4%.

"With the Fed turning dovish this year and other key central banks extending their lower-for-longer policy, Asia's central banks can afford to ease rates," said George Efstathopoulos, a multi-asset portfolio manager at Fidelity International. "This has already started, and we can expect to see this accommodative policy continue in the short to medium term, helping to stimulate credit growth and extend the lending cycle."

Indonesia's central bank on Thursday cut its benchmark interest rate for the fourth time in four months, lowering the 7-day reverse repurchase rate by 25 basis points to 5%.

Mainland lending heavyweights China Construction Bank and Industrial & Commercial Bank of China rose 1% and 1.8%, respectively, in Hong Kong.

Ping An Insurance Group added 0.7% ahead of its third-quarter results announcement.

China Railway Group rose 2.3% after reporting a 14.5% year-over-year increase in value of new contracts for the nine months ended Sept. 30.

Chipmaker SK Hynix jumped 3% in Seoul after reporting a third-quarter profit that beat expectations. The company's profit for the three-month period came in at 473 billion won ($404.7 million), ahead of the 418-billion-won profit analysts were expecting, according to Refinitiv Estimate.

Hyundai Motor rose 0.8%. The automaker on Thursday reported a third-quarter net profit of 427 billion won, up 59% from a year ago. However, analysts were expecting a profit of 684 billion won for the period, according to Refinitiv.

Steelmaker Posco edged 0.2% higher despite reporting a 32.1% drop in third-quarter operating profit.

Singapore's main equity benchmark, the Straits Times Index, rose 0.8% on Thursday. The city-state's economy may be approaching a bottom as the decline in trade and manufacturing has not had a major impact on other sectors, the head of the Monetary Authority of Singapore Ravi Menon said in an interview with Bloomberg.

Singapore Exchange ended 0.4% higher ahead of its quarterly earnings release.

India's top carmaker Maruti Suzuki India fell 0.7% in Mumbai after reporting a 39.3% decline in second-quarter net profit.

--Suzannah Benjamin

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media