Asia markets bounced in Monday’s session after 15 economies in the region signed a deal that formed the world’s largest trade alliance. Tech and auto stocks soared.
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 which excludes the U.S. It marks the first time that East Asian powers China, Japan and South Korea are in a single trade agreement.
The Nikkei 225 in Tokyo rocketed 521.06 points, or 2.1%, to end the week’s first session at 25,906.93.
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%, and a sign that the country was recovering from the damage caused by the pandemic.
Japan’s exporters made major gains on the back of the trade deal news.
Autos in Japan mainly benefited, with Nissan soaring more than 5%, and Mazda rocketing by 6.8%. Mitsubishi jumped 2.5%, and Honda
gained almost 5%.
Tech stocks in the country also gained. Tokyo Electron and Panasonic jumped nearly 5%. Softbank Group was up 1.83%.
The Japanese yen traded at 104.46 per dollar, after strengthening from levels above 105 late last week.
In Hong Kong, the Hang Seng index hiked 224.81 points, or 0.9%, to 26,381.67. Casino and finance stocks listed in the city were going strong. Standard Chartered was up 4.8%, while HSBC bounced 3.5%.
Tech stocks listed in South Korea also jumped. Samsung Electronics was up 4.91% and SK Hynix rocketed past 9%.
Over in Australia, the Australian Securities Exchange halted stock trading shortly after the open, and stayed close for the rest of the day due to a software issue which created "inaccurate market data," it said in a statement. It added it will resolve the issue overnight and resume trading at the usual time on Tuesday.
The Australian dollar was relatively unchanged, trading at 0.7285 against the dollar.
CHINA
Stocks in mainland China also benefited from the pact, and from favourable economic news.
In Shanghai, the CSI 300 re-strengthened 47.32 points, or 1%, to 4,904.17.
The country’s factory output rose faster than expected in October jumping 6.9%, data showed on Monday. Retail sales continued to recover, climbing 4.3% year-on-year, but missing forecasts of a 4.9% growth.
In other markets
In Shanghai, the CSI 300 re-strengthened 47.32 points, or 1%, to 4,904.17.
In Korea, the Kospi index advanced 49.16 points, or 2%, to 2,543.03.
In Taiwan, the Taiex Index spiked 278.5 points, or 2.1%, to 13,551.83.
In Singapore, the Straits Times Index moved higher 36.61 points, or 1.4%, to 2,748
In New Zealand, the NZX 50 gained 44.75 points, or 0.4%, to 12,744.92
In Australia, the ASX 200 recovered 79.11 points, or 1.2%, to 6,484.33
