Overseas Trading: Merger News Sends China, Hong Kong Sharply Higher

Merger talks in the shipping sector contributed to big wins for traders in China and Hong Kong

by Elizabeth Harrow

Published on Oct 15, 2015 at 8:25 AM
Updated on Jun 24, 2020 at 10:16 AM

Stocks in China and Hong Kong paced a rally in Asia today, as merger talks between China Merchants Energy Shipping Co. and Sinotrans & CSC Holdings Co. bolstered sentiment. Additionally, following soft U.S. inflation and retail data on Wednesday, traders across the region priced in lower expectations for a Federal Reserve rate hike this year. On the currency front, a backpedaling yen supported upside for Tokyo-listed stocks, while the won surged after the Bank of Korea opted to stand pat on monetary policy. By the close, China's Shanghai Composite jumped 2.3% and Hong Kong's Hang Seng added 2%, while Japan's Nikkei and South Korea's Kospi each advanced 1.2%.

Europe is also on higher ground at midday, as expectations for a more dovish U.S. Fed give bulls a confidence boost. However, luxury retailers are lagging once again, after Burberry cited an "increasingly challenging environment" for its Chinese patrons as one of the factors behind its disappointing first-half sales numbers. At last check, the German DAX is up 1.7%, the French CAC 40 has advanced 1.1%, and London's FTSE 100 is 1% higher.

Overseas markets 1015


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