- Akira Ito
- 02 Oct, 2024
- Tokyo
Stock market indexes in Tokyo erased most of the gains of the previous session, and investors turned cautious amid rising tensions in the Middle East.
The Nikkei 225 stock average dropped nearly 2%, and the broader Topix index declined more than 1% amid worries of a wider war in the Middle East.
Iran launched a ballistic missile attack targeting Israel, escalating war in the Middle East, and Israeli forces carried out a ground invasion in Lebanon to dismantle installations controlled by Hezbollah.
Despite Israel's recent military advances against Hezbollah in Lebanon and Hamas in Gaza, security conditions are not likely to improve in the Middle East in the near future.
Investors in Tokyo and Asia are worried about the possibilities of crude oil supply disruptions if the war draws Iran and its supporters to a wider war, prolonging instability in the region.
The yen decreased 0.1% to 143.64 against the U.S. dollar as currency traders monitored developments in the Middle East.
Japan's parliament elected Shigeru Ishiba, the president of the Liberal Democratic Party, as the 102nd prime minister, and investors looked for clues about the future course of the monetary and fiscal policies.
Prime Minister Ishiba is expected to support a gradual increase in the interest rate and is likely to be more conservative in increasing government spending.
The newly elected prime minister announced dissolution of the parliament on October 9 and called for a general election on October 27, as the ruling party sought to regain public trust following the political funds scandal.
On Tuesday, the Bank of Japan's Tankan survey found optimism among large manufacturing companies, but the mid-sized and smaller companies in the construction and service sectors expect conditions to worsen in the months ahead.
Japan Stock Movers
The Nikkei 225 stock average declined 1.9% to 37,930.58, and the Topix index dropped 1.1% to 2,660.87.
Tech stocks were among the leading decliners in Tokyo as investors turned cautions amid rising tensions in the Middle East.
Tokyo Electron decreased 3.6% to ¥25,105.0, Advantest fell 4% to ¥6,616.0, and Lasertec Corporation dropped 4% to ¥22,970.0.
Seven & I decreased 0.1% to ¥2,161.0, Isetan Mitsukoshi dropped 4.4% to ¥2,242.0, Fast Retailing declined 3.7% to ¥46,950.0, and Takashimaya fell 0.7% to ¥1,154.50.
Marubeni Corp. gained 1.5% to ¥2,417.50, Itochu advanced 1% to ¥7,868.0, Mitsubishi Corp added 0.6% to ¥3,046.0, and Mitsui & Company gained 1.2% to ¥3,332.0.
Shipping companies were in focus for the second day in a row after workers at 14 key ports in the U.S. went on a strike following the breakdown of wage negotiations.
Nippon Yusen KK decreased 0.4% to ¥5,312.0, Kawasaki Kisen Kaisha fell 0.6% to ¥2,216.0, and Mitsui O.S.K. Lines gained 1.2% to ¥5,046.0.
Automobile companies were in focus ahead of monthly sales data, and the vehicle makers scrambled to stock additional inventories after the U.S. port workers strike disrupted supply chains.
Toyota Motor decreased 0.9% to ¥2,573.50, Honda Motor increased 0.2% to ¥1,544.50, and Nissan Motor jumped 0.2% to ¥410.70.
- Li Chen
- 02 Oct, 2024
- Hong Kong
The stimulus rally in China has turned into a frenzy as investors piled in after the People's Bank of China announced measures to support financial markets.
The Hang Seng index soared nearly 4%, extending the rally to the sixth session in a row and gains to over a whopping 23%.
Financial markets in mainland China are closed for the Golden Week holidays, and trading is set to resume next Wednesday.
Last week, the People's Bank of China announced a raft of measures to revive investor confidence, facilitate lending to corporations and consumers, and provide support to the residential property market.
Moreover, Beijing's policymakers pivoted their attention to reviving economic growth and supporting the property market after sitting on the sidelines for four years.
Local authorities in Shanghai, Guangzhou, and Shenzhen eased restrictions on buying homes by lowering down payment requirements and approving purchases by nonresidents.
Luxury property sales soared in Shanghai over the weekend, following the easing of restrictions, powering the sale of more than 11 billion yuan in just two days.
Retail investors jumped on the bandwagon in Monday's trading, lifting the trading volume to record highs in Shenzhen and Shanghai stock exchanges.
About HK$506 billion, or $65 billion worth of stocks, changed hands on Monday in Hong Kong, breaking the previous record on Friday.
Trading turnover on exchanges in Shanghai and Shenzhen soared to a record high of 2.6 trillion yuan, or $371 billion, as individual and institutional investors bid up stocks.
The improving investor confidence is expected to draw more investments from global fund managers and foreign investors as foreign investors recalibrate their China exposure.
Despite the current euphoric market sentiment, it will take time before consumers feel the positive effect of the monetary policy easing.
Investors are now expecting the release of significant fiscal measures from policymakers over the next two weeks, but previous measures released earlier in the year have failed to revive consumer confidence and arrest the decline in the property market.
China Stock Movers
The Hang Seng index soared 3.6% to 22,380.41, and financial markets in China were closed for National Holidays.
Mainland China-focused property developers soared in Hong Kong trading.
China Resources Land jumped 10.5% to HK $31.55, China Vanke soared 41% to HK $10.52, Longfor Group Holding surged 30.1% to HK $19.62, and Sun Hung Kai Properties added 6.3% to HK $90.90.
Tech stocks also participated in the market rally, as investors warmed up to high-growth stocks and riskier assets.
Alibaba Group added 7.1% to HK $118.20, JD.com jumped 12.1% to HK $189.0, and Tencent Holdings gained 7.7% to HK $477.80.
Electric vehicle makers advanced in Hong Kong trading following the strong September sales driven by heavy discounting, and new models attracted new buyers.
Li Auto advanced 13.1% to HK $122.30 and BYD increased 7.2% to HK $305.0 after five leading electric vehicle makers reported record sales in September.
BYD sold a record 419,426 electric vehicles in September, an increase of 12.4% from the previous month and a surge of 45.9% from a year ago.
Li Auto shipped 53,709 electric vehicles last month, a rise of 11.6% from August and a jump of 48.9% from a year ago.
NIO Inc. increased 5.9% to HK $59.50 after the electric vehicle maker reported September vehicle sales increased 5% from the previous month and 35.4% from a year ago to 21,181.
Xpeng advanced 3.8% to HK $54.95 after the electric vehicle maker sold a record 21,352 units, an increase of 52.1% from August and a surge of 39.5% from a year ago.
- Scott Peters
- 30 Sep, 2024
- New York City
AT&T edged up 0.3% to $21.95 after the company said it has agreed to sell its 70% stake in satellite TV company DirectTV Entertainment Holding LLC to a private equity firm TPG for about $7.6 billion in cash payments stretching to 2029.
AT&T will receive $1.7 billion in cash at the time of completion of the deal, $5.4 billion in payment in 2025, and $500 million in 2029.
DirectTV also said in a separate statement it has agreed to buy Sling TV and Dish TV from EchoStar through debt exchange, culminating in a combination of two satellite TV companies.
In addition, Direct TV will acquire Dish TV's video distribution business for $1 and assume a net debt of $9.75 billion.
- Brian Turner
- 01 Oct, 2024
- Washington, D.C.
The number of job openings increased 329,000 to 8.04 million in August from an upwardly revised 7.71 million in July, the U.S. Bureau of Labor Statistics reported Tuesday.
The number of job openings increased in construction by 138,000, in state and local government excluding education by 78,000, and in accommodation and food services by 88,000.
However, job openings declined in finance insurance by 41,000 and in other services by 93,000.
In August, the total number of hires and total separations changed little, at 5.3 million and 5.0 million, respectively.
Within separations, the number of quits trended down to 3.1 million, the lowest since August 2020, indicating workers are holding on to jobs as it gets harder to find a new job.
- Alexander Garcia
- 01 Oct, 2024
- Miami
Stocks on Wall Street faced selling pressure amid growing prospects of a wider war in the Middle East.
Wall Street indexes traded down on the rising geopolitical risks and mixed economic data after finishing higher in the previous month and third quarter.
The S&P 500 index decreased 0.9% and the Nasdaq Composite declined 1.8% after the Israeli military reported that Iran launched ballistic missiles targeting Israel.
Market sentiment was further dented after workers at key ports decided to strike, which is likely to disrupt supply chains for weeks ahead.
Stock traders were also monitoring the first strike in fifty years by members of the International Longshoremen's Association on 14 ports on the East and Gulf Coasts.
About 45,000 members decided to strike after wage negotiations broke down with the U.S. Maritime Alliance employers group.
Consumers are likely to feel the impact of the strike if it drags on longer than a week, which could invite an intervention by President Joe Biden, asking workers to return to work and look for a settlement over the next eighty days.
Major averages on Monday edged higher after Fed Chair Jerome Powell signaled two possible rate cuts in the year if the economy performs as expected.
Market mood further soured after manufacturing contraction extended for the sixth month in a row in September.
The ISM Manufacturing Purchasing Managers' Index held steady at 47.2, matching the level in the previous month.
“Demand remains subdued, as companies showed an unwillingness to invest in capital and inventory due to federal monetary policy and election uncertainty," said Timothy R. Fiore, Chair of the Institute for Supply Management Manufacturing Business Survey Committee.
U.S. Job Openings Increased, Quits Dropped In August
The number of job openings increased 329,000 to 8.04 million in August from an upwardly revised 7.71 million in July, the U.S. Bureau of Labor Statistics reported Tuesday.
The number of job openings increased in construction by 138,000, in state and local government excluding education by 78,000, and in accommodation and food services by 88,000.
However, job openings declined in finance insurance by 41,000 and in other services by 93,000.
In August, the total number of hires and total separations changed little, at 5.3 million and 5.0 million, respectively.
Within separations, the number of quits trended down to 3.1 million, the lowest since August 2020, indicating workers are holding on to jobs as it gets harder to find a new job.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.9% to 5,708.76, the Nasdaq Composite fell 1.8% to 17,836.26, and the Russell 2000 index fell 1.4% to 2,197.90.
The yield on 2-year Treasury notes edged higher to 3.64%, 10-year Treasury notes inched down to 3.74%, and 30-year Treasury bonds inched lower to 4.12%.
WTI crude oil increased $3.0 to $71.76 a barrel, and natural gas prices edged down 3 cents to $2.89 a thermal unit.
Gold fell by $31.61 to $2,666.91 an ounce, and silver increased by $0.32 to $31.56.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.13.
U.S. Stock Movers
Charles Schwab Corporation declined 1.6% to $63.75, and the company announced the retirement of chief executive Walt Bettinger at the end of the year.
Charles Schwab President Rick Wurster is slated to assume the leadership role at the start of the new year.
Stellantis NV declined 1.9% to $13.78 and extended its loss for the second day in a row after the automaker plans to halt production of the electric Fiat 500 until the end of November.
McCormick & Company increased 0.7% to $82.84 after the spice maker reported better-than-expected revenue and earnings.
The spice and flavoring company reported net sales in the edge to $1.67 billion from $1.68 billion, net income increased to $223.1 million from $170.1 million, and diluted earnings per share to 83 cents from 63 cents.
The company reaffirmed its sales and operating profit outlook, and estimated adjusted earnings per share between $2.85 and $2.90.
European Markets Dropped Amid Prospects of a Wider War In Middle East
European market indexes swung between gains and losses as investors reviewed the latest update on consumer price inflation.
Benchmark indexes in Paris, London, and Frankfurt traded around the flatline after inflation in the Euro Area fell more than expected in September.
However, market sentiment deteriorated rapidly in the late afternoon trading on reports that Iran is preparing to strike targets in Israel ahead of its invasion in Lebanon.
Crude oil jumped as much as 4% as Israel prepared to carry out a military invasion in Lebanon, targeting territories controlled by Hezbollah, raising the prospects of supply disruptions.
Eurozone Manufacturing Woes Deepened In September
Eurozone manufacturing woes deepened amid broad weakness and the fall in new orders, output, employment, and procurement activity, S&P Global reported Tuesday.
The Hamburg Commercial Bank factory purchasing managers' index eased to 45.0 in September from 45.8 in August, according to the revised estimate.
The index stood at 44.8 in the preliminary estimate, and the final estimate was the lowest in the current series in 2024 and weakest in the current 27-month downturn.
Across the four largest economies in the currency union, the manufacturing index in Spain rose at the fastest pace to 53.0 from 50.5 in August and extended growth in activities for the eighth month in a row.
The headline manufacturing index plunged to a 12-month low of 40.6 from 42.4 in August as the sector's slump worsened.
"The worsening industrial slump in Germany, for example, is too big for Spain's momentum in September to make much of a difference," the Hamburg Commercial Bank Chief Economist Cyrus de la Rubia said.
Weakening Energy Prices Drag Eurozone Inflation Lower In September
Consumer price inflation in the eurozone slowed to 1.8% in September from 2.2% in August, Eurostat reported Tuesday.
Overall inflation dropped to the lowest level since April 2021.
The overall inflation slowed largely because of the weakening of the price of energy and related products, tracking lower crude oil prices.
Energy price deflation accelerated to 6% from 3% in the previous month, and food, alcohol, and tobacco inflation edged up to 2.4% from 2.3%.
Core inflation, which excludes food and energy, slowed to 2.7% from 2.8% in the previous month, and service inflation slowed to 4% from 4.1%.
Geographically, inflation eased in Germany to 1.8% from 2.0% in the previous month; in France it eased to 1.5% from 2.2%; in Italy it declined to 0.8% from 1.2%; and in Spain it slowed to 1.7% from 2.4%, respectively.
Overall inflation is expected to rebound in the later part of 2024, as the previous high base in energy prices ends.
Europe Indexes and Yields
The DAX index decreased by 0.6% to 19,200.18; the CAC-40 index fell by 0.8% to 7,574.07; and the FTSE 100 index rose by 0.5% to 8,276.65.
The yield on 10-year German bonds edged lower to 2.05%, French bonds inched lower to 2.80%, the UK gilts edged down to 3.95%, and Italian bonds decreased to 3.35%.
The euro edged lower to $1.10; the British pound inched higher to $1.33; and the U.S. dollar weakened to 84.66 Swiss cents.
Brent crude increased $2.58 to $74.28 a barrel, and the Dutch TTF natural gas rose by €0.76 to €39.42 per MWh.
Europe Stock Movers
Covestro AG jumped 4.2% to €58.10 after the Abu Dhabi-controlled oil company, ADNOC, said it plans to buy the German chemical firm for €14.7 billion.
The acquisition deal requires ADNOC to purchase all outstanding shares at €62 per share.
Crude oil prices traded volatile as investors weighed rising tensions in the Middle East against demand growth worries in the U.S.
BP plc, Shell PLC, TotalEnergies SE, and Repsol SA declined between 0.2% and 0.5%.
Mulberry Group PLC declined 3.2% to 120.0 pence, and the British luxury handbag maker rejected a conditional offer from Mike Ashley-controlled Frasers Group.
Greggs plc declined 4.2% to 2,992.0 pence after the bakery chain reported a slowdown in its core business in the latest quarter.
Tokyo Indexes Recover 2%, Japan Business Sentiment Held Steady In Third Quarter
Stock market indexes in Tokyo advanced, and the yen eased as investors reviewed the latest economic updates.
The Nikkei 225 stock average jumped 1.9%, and the Topix index advanced 1.7% after market sentiment reversed from the previous sentiment.
The yen weakened 0.5% to 144.36 against the U.S. dollar after calm returned to markets following the knee-jerk reaction in the previous session.
Markets sold off after former defense minister Shigeru Ishiba won the race to lead the Liberal Democratic Party, following the abrupt resignation of Prime Minister Fumio Kishida.
The hawkish monetary policy advocate Ishiba is expected to name former Chief Cabinet Secretary and health minister Katsunobu Kato as the next finance minister.
Ishiba's selection of cabinet members suggested that the next prime minister is laying the groundwork for a stable administration that is likely to favor moderate policies and a gradual increase in interest rates.
On the economic front, the au Jibun Bank Japan Manufacturing PMI was revised higher to 49.7 in September from the preliminary estimate of 49.6 and 49.8 in the previous month, S&P Global reported Tuesday.
The manufacturing sector contracted for the third month in a row, and activities declined for the seventh consecutive month as new orders fell driven by weakness in export orders.
In addition, the business sentiment weakened to the lowest level since December 2022.
The Bank of Japan's sentiment index among large manufacturers was stable for the second quarter in a row, according to the survey released by the central bank on Tuesday.
The sentiment index among the 1,730 large companies surveyed in the quarter was steady at 13, among 2,576 mid-sized companies was steady at 8, and among 4,732 small companies improved from -1 to zero.
The overall index among all 9,038 participants improved to 14 from 12, according to the data available from the so-called Tankan survey.
Meanwhile, large companies are looking to increase capital spending by 10.6% in the current fiscal year ending in March 2025.
Japan Stock Movers
The Nikkei 225 Stock Average gained 1.9% to 38,643.77, and the Topix index advanced 1.7% to 2,690.32.
Exporting companies and industrial heavyweights traded higher after U.S. Fed Chair Powell poured cold water over another 50 basis points rate hike during the next policy meeting.
Mitsubishi Heavy Industries increased 7.5% to ¥2,278.0, Kawasaki Heavy Industries gained 8.2% to ¥6,286.0, and IHI Corp. jumped 7.9% to ¥7,966.0.
Mitsubishi UFJ advanced 2% to ¥1,482.50, Sumitomo Mitsui Financial Group gained 2.1% to ¥3,110.0, and Mizuho Financial increased 2.1% to ¥2,998.0.
Seven & I Holdings advanced 0.6% to ¥2,160.50, Isetan Mitsukoshi jumped 5% to ¥2,340.50, and Fast Retailing gained 2.4% to ¥48,570.0.
Marubeni Corp. gained 1.9% to ¥2,385.50, Itochu Corp. added 3.7% to ¥7,960.0, Mitsui & Company jumped 3.7% to ¥3,293.0, and Mitsubishi Corp. added 2.5% to ¥3,027.0.
Shipping companies were in focus amid elevated tensions in the Middle East, and shipping workers at 14 ports on the U.S. East Coast and along the Gulf of Mexico were demanding higher wages over the next five years.
The container shipping companies have earned more than $400 billion over the four years since the onset of the pandemic in 2020, surpassing the combined profits in the previous four decades.
Nippon Yusen KK increased 1.9% to ¥5,298.0, Mitsui O.S.K. Lines gained 1% to ¥4,976.0, and Kawasaki Kishen Kaisa added 0.5% to ¥2,224.50.
- Scott Peters
- 01 Oct, 2024
- New York City
Charles Schwab Corporation declined 1.6% to $63.75, and the company announced the retirement of chief executive Walt Bettinger at the end of the year.
Charles Schwab President Rick Wurster is slated to assume the leadership role at the start of the new year.
Stellantis NV declined 1.9% to $13.78 and extended its loss for the second day in a row after the automaker plans to halt production of the electric Fiat 500 until the end of November.
McCormick & Company increased 0.7% to $82.84 after the spice maker reported better-than-expected revenue and earnings.
The spice and flavoring company reported net sales in the edge to $1.67 billion from $1.68 billion, net income increased to $223.1 million from $170.1 million, and diluted earnings per share to 83 cents from 63 cents.
The company reaffirmed its sales and operating profit outlook, and estimated adjusted earnings per share between $2.85 and $2.90.
- Barry Adams
- 01 Oct, 2024
- New York City
Wall Street indexes edged lower after finishing higher in the previous month and third quarter.
The S&P 500 index decreased 0.9% and the Nasdaq Composite declined 1.2% as investors awaited the release of manufacturing surveys.
Major averages on Monday edged higher after Fed Chair Jerome Powell signaled two possible rate cuts in the year if the economy performs as expected.
However, Powell cautioned that the policy committee's decision is data-dependent and "not on any preset course."
The Federal Reserve's super-sized rate cut of 50 basis points last month bolstered market sentiment and pushed stock market indexes to new highs.
Investors now shifted their attention to the upcoming nonfarm payroll update on Friday and the JOLT report later today.
Stock traders were also monitoring the first strike in fifty years by members of the International Longshoremen's Association on 14 ports on the East and Gulf Coasts.
About 45,000 members decided to strike after wage negotiations broke down with the U.S. Maritime Alliance employers group.
Consumers are likely to feel the impact of the strike if it drags on longer than a week, which could invite an intervention by President Joe Biden, asking workers to return to work and look for a settlement over the next eighty days.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.9% to 5,712.70, the Nasdaq Composite fell 1.2% to 17,990.69, and the Russell 2000 index rose 0.7% to 2,216.23.
The yield on 2-year Treasury notes edged higher to 3.64%, 10-year Treasury notes inched down to 3.74%, and 30-year Treasury bonds inched lower to 4.12%.
WTI crude oil increased $0.57 to $68.76 a barrel, and natural gas prices edged up 3 cents to $2.88 a thermal unit.
Gold fell by $29.76 to $2,662.92 an ounce, and silver increased by $0.61 to $31.66.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.13.
U.S. Stock Movers
Charles Schwab Corporation declined 1.6% to $63.75, and the company announced the retirement of chief executive Walt Bettinger at the end of the year.
Charles Schwab President Rick Wurster is slated to assume the leadership role at the start of the new year.
Stellantis NV declined 1.9% to $13.78 and extended its loss for the second day in a row after the automaker plans to halt production of the electric Fiat 500 until the end of November.
McCormick & Company increased 0.7% to $82.84 after the spice maker reported better-than-expected revenue and earnings.
The spice and flavoring company reported net sales in the edge to $1.67 billion from $1.68 billion, net income increased to $223.1 million from $170.1 million, and diluted earnings per share to 83 cents from 63 cents.
The company reaffirmed its sales and operating profit outlook, and estimated adjusted earnings per share between $2.85 and $2.90.
- Inga Muller
- 01 Oct, 2024
- Frankfurt
Eurozone inflation fell at a faster-than-expected pace in September, driven by a sharp decline in energy prices.
Manufacturing woes deepened in the Euro Area as producers struggled with easing growth in orders and output.
The DAX index increased by 0.4% to 19,403.07; the CAC-40 index fell by 0.01% to 7,634.25; and the FTSE 100 index rose by 0.3% to 8,278.71.
The yield on 10-year German bonds edged lower to 2.05%, French bonds inched lower to 2.80%, the UK gilts edged down to 3.95%, and Italian bonds decreased to 3.35%.
Covestro AG jumped 4.2% to €58.10 after the Abu Dhabi-controlled oil company, ADNOC, said it plans to buy the German chemical firm for €14.7 billion.
The acquisition deal requires ADNOC to purchase all outstanding shares at €62 per share.
Crude oil prices traded volatile as investors weighed rising tensions in the Middle East against demand growth worries in the U.S.
BP plc, Shell PLC, TotalEnergies SE, and Repsol SA declined between 0.2% and 0.5%.
Mulberry Group PLC declined 3.2% to 120.0 pence, and the British luxury handbag maker rejected a conditional offer from Mike Ashley-controlled Frasers Group.
Greggs plc declined 4.2% to 2,992.0 pence after the bakery chain reported a slowdown in its core business in the latest quarter.
- Bridgette Randall
- 01 Oct, 2024
- London
European market indexes swung between gains and losses as investors reviewed the latest update on consumer price inflation.
Benchmark indexes in Paris, London, and Frankfurt traded around the flatline after inflation in the Euro Area fell more than expected in September.
Crude oil was in focus as Israel prepared to carry out a military invasion in Lebanon, targeting territories controlled by Hezbollah, raising the prospects of supply disruptions.
Eurozone Manufacturing Woes Deepened In September
Eurozone manufacturing woes deepened amid broad weakness and the fall in new orders, output, employment, and procurement activity, S&P Global reported Tuesday.
The Hamburg Commercial Bank factory purchasing managers' index eased to 45.0 in September from 45.8 in August, according to the revised estimate.
The index stood at 44.8 in the preliminary estimate, and the final estimate was the lowest in the current series in 2024 and weakest in the current 27-month downturn.
Across the four largest economies in the currency union, the manufacturing index in Spain rose at the fastest pace to 53.0 from 50.5 in August and extended growth in activities for the eighth month in a row.
The headline manufacturing index plunged to a 12-month low of 40.6 from 42.4 in August as the sector's slump worsened.
"The worsening industrial slump in Germany, for example, is too big for Spain's momentum in September to make much of a difference," the Hamburg Commercial Bank Chief Economist Cyrus de la Rubia said.
Weakening Energy Prices Drag Eurozone Inflation Lower In September
Consumer price inflation in the eurozone slowed to 1.8% in September from 2.2% in August, Eurostat reported Tuesday.
Overall inflation dropped to the lowest level since April 2021.
The overall inflation slowed largely because of the weakening of the price of energy and related products, tracking lower crude oil prices.
Energy price deflation accelerated to 6% from 3% in the previous month, and food, alcohol, and tobacco inflation edged up to 2.4% from 2.3%.
Core inflation, which excludes food and energy, slowed to 2.7% from 2.8% in the previous month, and service inflation slowed to 4% from 4.1%.
Geographically, inflation eased in Germany to 1.8% from 2.0% in the previous month; in France it eased to 1.5% from 2.2%; in Italy it declined to 0.8% from 1.2%; and in Spain it slowed to 1.7% from 2.4%, respectively.
Overall inflation is expected to rebound in the later part of 2024, as the previous high base in energy prices ends.
Europe Indexes and Yields
The DAX index increased by 0.4% to 19,403.07; the CAC-40 index fell by 0.01% to 7,634.25; and the FTSE 100 index rose by 0.3% to 8,278.71.
The yield on 10-year German bonds edged lower to 2.05%, French bonds inched lower to 2.80%, the UK gilts edged down to 3.95%, and Italian bonds decreased to 3.35%.
The euro edged lower to $1.10; the British pound inched higher to $1.33; and the U.S. dollar weakened to 84.66 Swiss cents.
Brent crude decreased $0.53 to $71.16 a barrel, and the Dutch TTF natural gas fell by €0.44 to €38.21 per MWh.
Europe Stock Movers
Covestro AG jumped 4.2% to €58.10 after the Abu Dhabi-controlled oil company, ADNOC, said it plans to buy the German chemical firm for €14.7 billion.
The acquisition deal requires ADNOC to purchase all outstanding shares at €62 per share.
Crude oil prices traded volatile as investors weighed rising tensions in the Middle East against demand growth worries in the U.S.
BP plc, Shell PLC, TotalEnergies SE, and Repsol SA declined between 0.2% and 0.5%.
Mulberry Group PLC declined 3.2% to 120.0 pence, and the British luxury handbag maker rejected a conditional offer from Mike Ashley-controlled Frasers Group.
Greggs plc declined 4.2% to 2,992.0 pence after the bakery chain reported a slowdown in its core business in the latest quarter.
- Akira Ito
- 01 Oct, 2024
- Tokyo
Stock market indexes in Tokyo advanced, and the yen eased as investors reviewed the latest economic updates.
The Nikkei 225 stock average jumped 1.9%, and the Topix index advanced 1.7% after market sentiment reversed from the previous sentiment.
The yen weakened 0.5% to 144.36 against the U.S. dollar after calm returned to markets following the knee-jerk reaction in the previous session.
Markets sold off after former defense minister Shigeru Ishiba won the race to lead the Liberal Democratic Party, following the abrupt resignation of Prime Minister Fumio Kishida.
The hawkish monetary policy advocate Ishiba is expected to name former Chief Cabinet Secretary and health minister Katsunobu Kato as the next finance minister.
Ishiba's selection of cabinet members suggested that the next prime minister is laying the groundwork for a stable administration that is likely to favor moderate policies and a gradual increase in interest rates.
On the economic front, the au Jibun Bank Japan Manufacturing PMI was revised higher to 49.7 in September from the preliminary estimate of 49.6 and 49.8 in the previous month, S&P Global reported Tuesday.
The manufacturing sector contracted for the third month in a row, and activities declined for the seventh consecutive month as new orders fell driven by weakness in export orders.
In addition, the business sentiment weakened to the lowest level since December 2022.
The Bank of Japan's sentiment index among large manufacturers was stable for the second quarter in a row, according to the survey released by the central bank on Tuesday.
The sentiment index among the 1,730 large companies surveyed in the quarter was steady at 13, among 2,576 mid-sized companies was steady at 8, and among 4,732 small companies improved from -1 to zero.
The overall index among all 9,038 participants improved to 14 from 12, according to the data available from the so-called Tankan survey.
Meanwhile, large companies are looking to increase capital spending by 10.6% in the current fiscal year ending in March 2025.
Japan Stock Movers
The Nikkei 225 Stock Average gained 1.9% to 38,643.77, and the Topix index advanced 1.7% to 2,690.32.
Exporting companies and industrial heavyweights traded higher after U.S. Fed Chair Powell poured cold water over another 50 basis points rate hike during the next policy meeting.
Mitsubishi Heavy Industries increased 7.5% to ¥2,278.0, Kawasaki Heavy Industries gained 8.2% to ¥6,286.0, and IHI Corp. jumped 7.9% to ¥7,966.0.
Mitsubishi UFJ advanced 2% to ¥1,482.50, Sumitomo Mitsui Financial Group gained 2.1% to ¥3,110.0, and Mizuho Financial increased 2.1% to ¥2,998.0.
Seven & I Holdings advanced 0.6% to ¥2,160.50, Isetan Mitsukoshi jumped 5% to ¥2,340.50, and Fast Retailing gained 2.4% to ¥48,570.0.
Marubeni Corp. gained 1.9% to ¥2,385.50, Itochu Corp. added 3.7% to ¥7,960.0, Mitsui & Company jumped 3.7% to ¥3,293.0, and Mitsubishi Corp. added 2.5% to ¥3,027.0.
Shipping companies were in focus amid elevated tensions in the Middle East, and shipping workers at 14 ports on the U.S. East Coast and along the Gulf of Mexico were demanding higher wages over the next five years.
The container shipping companies have earned more than $400 billion over the four years since the onset of the pandemic in 2020, surpassing the combined profits in the previous four decades.
Nippon Yusen KK increased 1.9% to ¥5,298.0, Mitsui O.S.K. Lines gained 1% to ¥4,976.0, and Kawasaki Kishen Kaisa added 0.5% to ¥2,224.50.
- Arun Goswami
- 01 Oct, 2024
- Mumbai
Stocks in Mumbai lacked direction amid elevated tensions in the Middle East and ahead of the start of earnings season next week.
The Sensex index increased by 0.1% to 84,371.88, and the Nifty index fell by 0.1% to 25,829.35.
On the Mumbai stock exchange, 110 stocks traded at their 52-week highs, and 19 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 6.75%, and the Indian rupee eased to 83.81 against the U.S. dollar.
The gold price increased by 0.1% to ₹75,250 per ten grams, and silver edged down by 0.1% to ₹90,641 per kilo.
RBL Bank Ltd. decreased 1.5% to ₹204.0, and Hydra Trading has sold a 1.24% stake in the company for an average price of ₹203 per share.
The company sold 75.1 lakh shares for ₹152 crore.
Cyient DLM declined 0.6% to ₹668.30, and Morgan Stanley-controlled funds sold 4.34 lakh stocks for ₹29 crore to mutual funds owned by HDFC.
Dr Reddy's Laboratories increased 0.4% to ₹6,750.0, and the Hyderabad-based pharmaceutical company said it completed the purchase of Haleon plc's global consumer healthcare brands in nicotine replacement therapy for £458 million, or about ₹5,152 crore.
McLeod Russell increased 9.9% to ₹32.81, and the company's managing director, Aditya Khaitan, expressed optimism about resolving outstanding debt payments of ₹1,800 crore.
Adani Enterprises increased 0.1% to ₹3,131.0, and the company's subsidiary Adani Airport Holdings raised ₹1,950 crore through the sale of bonds with a coupon rate of 9.35%.
Mankind Pharma decreased 3% to ₹2,513.80, and the company's board approved the sale of non-convertible bonds and commercial paper to raise ₹10,000 crore.
Indian Oil Corporation decreased 0.2% to ₹179.69, and the company withdrew its ₹22,000 crore rights issue following the lack of provision in the current fiscal year.
Blue Dart Express increased 3.7% to ₹8,171.05, and the company said it plans to raise its shipping charges between 9% and 12% from January 1, 2025.
Bharti Airtel increased 0.7% to ₹1,705.0, and the wireless telecom company has prepaid its next installment of ₹8,465 crore to the ministry of telecom for the acquisition of wireless spectrum in 2016.
- Alexander Garcia
- 30 Sep, 2024
- Miami
Stock market indexes on Wall Street flatlined in Monday's trading, and benchmark indexes are set to close higher for the month and for the quarter.
The S&P 500 index and the Nasdaq traded in a tight range in early trading in New York as investors debated future rate paths and economic outlook.
The S&P 500 index increased 1.5% in September and jumped 5.0% in the quarter, and the Nasdaq added 2.2% and advanced 2.0%, respectively.
Two widely followed benchmark indexes advanced in previous consecutive weeks, supported by the Fed's super-sized rate cut and better-than-expected economic data indicating resilient consumer demand and moderating but strong labor market conditions.
Investor anxieties rose after port workers at 14 major ports on the East Coast and along the Gulf Coast are set to strike at midnight Monday, potentially disrupting supplies for days or weeks.
The International Longshoremen's Association said in a post that workers plan to strike at 12:01 E.T. on Tuesday, after the master contract with the U.S. Maritime Alliance expires.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.1% to 5,740.46, the Nasdaq Composite rose 0.1% to 18,144.09, and the Russell 2000 index rose 0.1% to 2,227.09.
The yield on 2-year Treasury notes edged higher to 3.63%, 10-year Treasury notes inched up to 3.75%, and 30-year Treasury bonds inched higher to 4.13%.
WTI crude oil increased $0.68 to $68.79 a barrel, and natural gas prices edged up 1 cent to $2.90 a thermal unit.
Gold fell by $21.83 to $2,636.52 an ounce, and silver decreased by $0.36 to $31.25.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.43.
U.S. Stock Movers
AT&T edged up 0.3% to $21.95 after the company said it has agreed to sell its 70% stake in satellite TV company DirectTV Entertainment Holding LLC to a private equity firm TPG for about $7.6 billion in cash payments stretching to 2029.
AT&T will receive $1.7 billion in cash at the time of completion of the deal, $5.4 billion in payment in 2025, and $500 million in 2029.
DirectTV also said in a separate statement it has agreed to buy Sling TV and Dish TV from EchoStar through debt exchange, culminating in a combination of two satellite TV companies.
In addition, Direct TV will acquire Dish TV's video distribution business for $1 and assume a net debt of $9.75 billion.
Verizon Communications edged up a fraction to a two-year high of $45.10 after the company struck a deal to lease its wireless communications towers for $3.3 billion.
Vertical Bridge agreed to pay upfront $2.8 billion in cash for an exclusive license to lease and operate 6,339 towers across 50 U.S. states and Washington, D.C.
Stellantis declined 13% to $13.96 after the parent company of Jeep and Fiat lowered its annual outlook, citing sales weakness in "most regions."
Volkswagen AG dropped 2.2% to $11.13 after the German automaker issued its second profit warning in three months, citing ongoing weakness in China.
Nio Inc. advanced 13.5% to $7.43 after the electric vehicle maker said its China-based subsidiary will receive a total of 13.3 billion yuan of investment, including 3.3 billion from a "strategic investor."
After the investment, Nio Inc.'s stake in Nio China increased to 88.3% from 92.1%.
Alibaba Group increased 4.4% to $111.93 following a surge in tech stocks in Hong Kong and mainland China in the hopes that Beijing will soon announce fiscal measures following a package of monetary stimulus by the People's Bank of China.
Other China-linked stocks traded higher after three cities in China lowered down payment requirements and eased other restrictions for residential properties.
JD.com increased 5.5% to $42.07, and Tencent Holdings fell 0.3% to $56.88.
European Markets Dragged Down by Weak Auto Stocks, Italy's Inflation Eased to 2024 Low
European stock market indexes traded lower in Monday's trading, bond yields edged higher, and the euro held firm against the dollar.
Benchmark indexes in London, Paris, and Frankfurt fell as investors debated future rate paths and calls for lowering interest rates rose amid cooling inflation.
Italy reported the annual inflation rate eased in September and dropped to the lowest level in 2024, reflecting a weakening of inflation in energy and manufactured goods, according to the statistical agency, ISTAT.
Consumer price inflation slowed to 0.7% from 1.1% in August, and core inflation, which excludes volatile food and energy prices, eased to 1.8% from 1.9% in the previous month.
Germany's annual consumer price inflation eased to 1.6% in September from 1.9% in August, the Federal Statistical Office, Destatis, reported Monday.
Last week France and Spain reported a slowing of inflation, largely reflecting weaker energy prices, but core inflation held steady because of elevated service inflation.
The U.K.'s second quarter gross domestic product increase from the previous quarter was revised down to 0.5%, slower than the previously estimated rise of 0.6%.
The inflation dropped to the lowest level since February 2021, largely because of the decline in energy price accelerated to 7.6% from 5.1% in the previous month, offsetting food price inflation increase to 1.6% from 1.5%, respectively.
Core inflation, which excludes food and energy prices, eased to 2.7% from 2.5%.
Europe Indexes and Yields
The DAX index decreased by 0.8% to 19,324.93; the CAC-40 index fell by 2.0% to 7,635.75; and the FTSE 100 index declined by 1.1% to 8,236.95.
The yield on 10-year German bonds edged higher to 2.15%, French bonds inched higher to 2.95%, the UK gilts edged up to 4.0%, and Italian bonds increased to 3.48%.
The euro edged lower to $1.11; the British pound inched higher to $1.33; and the U.S. dollar weakened to 84.41 Swiss cents.
Brent crude increased $0.65 to $72.21 a barrel, and the Dutch TTF natural gas fell by €0.03 to €38.67 per MWh.
Europe Stock Movers
Rightmove PLC decreased 613.40 pence and extended losses for the second day in a row after the company's board rejected a £6.2 billion offer from Australia-based REA Group.
Oil exploration companies were in focus after tensions in the Middle East rose and Israel carried out more targeted bombing campaigns in Beirut and accelerated its land grab in Gaza.
Shell PLC increased 0.1% to 2,426.50 pence. BP plc gained 0.6% to 390.55 pence, and TotalEnergies SE declined 1.4% to €58.35.
Automakers traded down after Volkswagen AG issued a profit warning for the second time in three months and Stellantis NV lowered its annual outlook amid weakness in sales across all regions.
Stellantis dropped 15.4% to €12.36 and extended losses to more than 60% from a high of €27 in March; Volkswagen decreased 2.5% to €94.66 and traded at a five-year low.
3i Group plc decreased 2.6% to 3,300 pence, and Shadowfall Capital reportedly took a multi-million-pound short position in the private equity venture capital firm.
Japan to Call General Election On October 27, Yen Rallies and the Nikkei 225 Plunges 4%
Stock market indexes in Tokyo plunged following the announcement of the new leader of the ruling Liberal Democratic Party.
The Nikkei 225 stock average and the Topix index jumped as much as 5%, and investors overlooked the latest updates on retail sales and industrial production data.
Former defense minister Shigeru Ishiba won the tightly contested leadership race by nine candidates, garnering more votes than the run-off rival Sanae Takaichi, setting the stage for the premiership of Japan.
The newly elected party leader also expressed his plan to hold a general election as early as October, and Ishiba in the past has supported more hawkish monetary policy.
"I believe it is important for the new administration to be judged by the people as soon as possible," and added, "we would like to hold a general election on October 27," Ishiba said at an LDP news conference.
The party is expected to confirm his nomination as the next prime minister at the Diet session on Tuesday.
The Japanese yen soared to 141.7 against the U.S. dollar, dampening the stock market sentiment.
On the economic front, Japan's annual retail sales growth slightly accelerated to 2.8% in August from 2.7% in July, the Ministry of Economy, Trade & Industry reported.
Retail sales increased for the 29th month in a row, supported by the increase in wages, which continue to support higher consumption of basic items.
On a monthly basis, retail sales accelerated to an increase of 0.8%, after sales rose 0.2% in July.
Japan's industrial production declined 3.3% from the previous month in August, the fifth monthly decline in 2024, the ministry said in a separate report.
From the previous year, industrial production declined 4.9%, marking the sixth decline in 2024 and reversing the 2.9% increase in July.
Japan Stock Movers
The Nikkei 225 Stock Average declined 5% to 37,826.07 and the Topix index dropped 3.6% to 2,641.68.
Tech stocks led the decliners in Tokyo, and semiconductor-related stocks were the worst hit.
Advantest Corp. fell 6.5% to ¥6,741.0, Tokyo Electron declined 8% to ¥25,290.0, and Lasertec dropped 10% to ¥23,605.0.
Seven & I Holding declined 3.2% to HK ¥2,146.50, Fast Retailing decreased 3.4% to ¥47,420.0, and Isetan Mitsukoshi plunged 10.5% to ¥2,226.0.
Toyota Motor decreased 7.6% to ¥2,542.50, Honda Motor declined 7% to ¥1,507.50, and Nissan Motor fell 6% to ¥402.50.
Marubeni declined 3% to ¥2,340.0, Itochu Corp. fell 3.3% to ¥7,678.0, Mitsui & Company decreased 2.8% to ¥3,178.0, and Mitsubishi eased 4.2% to ¥2,952.50.
Sumitomo Mitsui Financial gained 3% to ¥3,045.0, Mitsubishi UFJ Financial advanced 0.2% to ¥1,453.50, and Mizuho Financial gained 4.2% to ¥2,936.0.
China's Stimulus Rally Extended September Gains to Over 20%
Stock market indexes soared in mainland China and Hong Kong as a stimulus rally extended gains to the holiday-shortened third week.
The Hang Seng index jumped 3% and the mainland-focused CSI 300 index soared more than 6%, and the two widely followed indexes extended September gains to over 20%.
Investors bid up stocks in the hopes that the latest easing of property market restrictions coupled with monetary policy stimulus and the expected fiscal measure will revive consumer confidence.
On Monday, three leading cities in China relaxed terms to acquire residential property.
Guangzhou city authorities removed all restrictions on buying multiple residential properties.
Shanghai and Shenzhen relaxed down payment requirements for first and additional home purchases and permitted non-locals to acquire residential properties, boosting demand for new homes.
Moreover, the People's Bank of China lowered its mortgage rate following the announcement last week.
Investors are hoping that policymakers will follow up with significant fiscal measures in about two weeks ahead of the policy committee meeting.
On Tuesday, financial markets in Hong Kong are closed for the National Holiday, and mainland China markets will remain closed through October 8.
Investors largely ignored the latest update on the manufacturing sector, highlighting the weakness for the fifth month in a row.
The manufacturing purchasing managers' index edged higher to 49.8 in September from 49.1 in the previous month, the National Bureau of Statistics reported on Monday.
The non-manufacturing PMI index, which includes construction and service sector activities, eased to 50.0 in September from 50.3 in the previous month, the official report showed.
The Caixin China General Manufacturing PMI decreased to 49.3 in September from 50.4 in August and fell to the lowest level since July 2023, according to the latest update reported by S&P Global.
New orders, foreign sales, and employment all contracted amid weakness in foreign and domestic orders.
Moreover, business sentiment dropped to the second-lowest on record after new orders fell to the lowest level in two years.
The government survey data differs from the private survey because the official sample is dominated by larger and state-controlled companies, while the private survey includes more smaller companies active in international trade.
China Stock Movers
The Hang Seng index decreased 3.3% to 21,321.97, and the CSI 300 index soared 6.2% to 3,934.08.
Property stocks soared following the easing of curbs on residential property purchases in three leading southern cities.
Longfor Group soared 17% to HK $16.04, China Vanke advanced 12.7% to HK $7.52, China Resources Land gained 4.1% to HK $29.05, and Sun Hung Kai Properties declined 0.6% to HK $86.05.
Alibaba Group jumped 9.6% to HK $112.20, JD.com advanced 10.7% to HK $168.30, and Tencent Holdings gained 4.4% to HK $455.40.
BYD gained 3.9% to HK $286.40, Li Auto soared 10.1% to HK $110.0, and Xpeng surged 15.3% to HK $54.50.
Bank of China decreased 1.9% to HK $3.66, China Merchants Bank added 1.6% to HK $38.80, and Industrial and Commercial Bank of China fell 1.7%.
- Scott Peters
- 30 Sep, 2024
- New York City
Benchmark indexes on Wall Street struggled to advance, and investors awaited comments from Fed Chair Powell.
AT&T agreed to sell its stake in Direct TV and facilitated its merger with Dish TV.
The S&P 500 index decreased 0.2% to 5,727.03, the Nasdaq Composite fell 0.2% to 18,078.59, and the Russell 2000 index rose 0.3% to 2,230.26.
The yield on 2-year Treasury notes edged higher to 3.63%, 10-year Treasury notes inched up to 3.75%, and 30-year Treasury bonds inched higher to 4.13%.
AT&T edged up 0.3% to $21.95 after the company said it has agreed to sell its 70% stake in satellite TV company DirectTV Entertainment Holding LLC to a private equity firm TPG for about $7.6 billion in cash payments stretching to 2029.
AT&T will receive $1.7 billion in cash at the time of completion of the deal, $5.4 billion in payment in 2025, and $500 million in 2029.
DirectTV also said in a separate statement it has agreed to buy Sling TV and Dish TV from EchoStar through debt exchange, culminating in a combination of two satellite TV companies.
In addition, Direct TV will acquire Dish TV's video distribution business for $1 and assume a net debt of $9.75 billion.
Stellantis declined 13% to $13.96 after the parent company of Jeep and Fiat lowered its annual outlook, citing sales weakness in "most regions."
Volkswagen AG dropped 2.2% to $11.13 after the German automaker issued its second profit warning in three months, citing ongoing weakness in China.
Nio Inc. advanced 13.5% to $7.43 after the electric vehicle maker said its China-based subsidiary will receive a total of 13.3 billion yuan of investment, including 3.3 billion from a "strategic investor."
After the investment, Nio Inc.'s stake in Nio China increased to 88.3% from 92.1%.
Alibaba Group increased 4.4% to $111.93 following a surge in tech stocks in Hong Kong and mainland China in the hopes that Beijing will soon announce fiscal measures following a package of monetary stimulus by the People's Bank of China.
Other China-linked stocks traded higher after three cities in China lowered down payment requirements and eased other restrictions for residential properties.
JD.com increased 5.5% to $42.07, and Tencent Holdings fell 0.3% to $56.88.
- Barry Adams
- 30 Sep, 2024
- New York City
Stocks struggled to advance in Monday's trading, and benchmark indexes are set to close higher for the month and for the quarter.
The S&P 500 index decreased 0.2% and the Nasdaq dropped as much as 0.3% in early trading in New York as investors debated future rate paths and economic outlook.
The S&P 500 index increased 1.6% in September and jumped 5.1% in the quarter, and the Nasdaq added 2.3% and advanced 2.2%, respectively.
Two widely followed benchmark indexes advanced in previous consecutive weeks, supported by the Fed's super-sized rate cut and better-than-expected economic data indicating resilient consumer demand and moderating but strong labor market conditions.
Investor anxieties rose after port workers at 14 major ports on the East Coast and along the Gulf Coast are set to strike at midnight Monday, potentially disrupting supplies for days or weeks.
The International Longshoremen's Association said in a post that workers plan to strike at 12:01 E.T. on Tuesday, after the master contract with the U.S. Maritime Alliance expires.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.2% to 5,727.03, the Nasdaq Composite fell 0.2% to 18,078.59, and the Russell 2000 index rose 0.3% to 2,230.26.
The yield on 2-year Treasury notes edged higher to 3.63%, 10-year Treasury notes inched up to 3.75%, and 30-year Treasury bonds inched higher to 4.13%.
WTI crude oil decreased $0.15 to $67.99 a barrel, and natural gas prices edged down 1 cent to $2.90 a thermal unit.
Gold fell by $19.98 to $2,638.47 an ounce, and silver decreased by $0.45 to $31.16.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.43.
U.S. Stock Movers
AT&T edged up 0.3% to $21.95 after the company said it has agreed to sell its 70% stake in satellite TV company DirectTV Entertainment Holding LLC to a private equity firm TPG for about $7.6 billion in cash payments stretching to 2029.
AT&T will receive $1.7 billion in cash at the time of completion of the deal, $5.4 billion in payment in 2025, and $500 million in 2029.
DirectTV also said in a separate statement it has agreed to buy Sling TV and Dish TV from EchoStar through debt exchange, culminating in a combination of two satellite TV companies.
In addition, Direct TV will acquire Dish TV's video distribution business for $1 and assume a net debt of $9.75 billion.
Stellantis declined 13% to $13.96 after the parent company of Jeep and Fiat lowered its annual outlook, citing sales weakness in "most regions."
Volkswagen AG dropped 2.2% to $11.13 after the German automaker issued its second profit warning in three months, citing ongoing weakness in China.
Nio Inc. advanced 13.5% to $7.43 after the electric vehicle maker said its China-based subsidiary will receive a total of 13.3 billion yuan of investment, including 3.3 billion from a "strategic investor."
After the investment, Nio Inc.'s stake in Nio China increased to 88.3% from 92.1%.
Alibaba Group increased 4.4% to $111.93 following a surge in tech stocks in Hong Kong and mainland China in the hopes that Beijing will soon announce fiscal measures following a package of monetary stimulus by the People's Bank of China.
Other China-linked stocks traded higher after three cities in China lowered down payment requirements and eased other restrictions for residential properties.
JD.com increased 5.5% to $42.07, and Tencent Holdings fell 0.3% to $56.88.