The anniversary of the People’s Republic of China started on October 1. The stock exchanges in China and Hong were closed due to the holidays. China has the biggest economy in Asia and the second-largest in the world. Its citizens celebrated one of the most import holidays in their country.
Nevertheless, across the Asia Pacific region, several important news influenced the stock markets Also, even though it was a holiday in China the Communist Party used the anniversary to underline its might and unity. This is a signal despite the protests in Hong Kong; the Communist Party is ready to defend the existing structure of power.
On October 1, the Reserve Bank of Australia decided to lower its cash rate by a quarter-point. The cast rate decreased to record a low level which is 0.75%.
It was not the first case when the Reserve Bank of Australia made the decision to lower this rate in 2019. This was the third time. The central bank is trying to boost the local economy by lowering interest rates. Another reason is to reach the inflation target.
Stocks on October 1
The Bank of Japan released the Tankan survey. Based on this survey, the big manufacturer’s index continues to fall since the beginning of 2019. Also, the manufacturer’s index in the third quarter fell to the lowest level in more than six years.
Meanwhile, the Nikkei 225 index increased by 0.59% to 21,885. Another Japanese index Topic increased by 0.96% and was close to 1,603.
South Korea’s Kaspi index rose by 0.45% and was close to 2,072. On October 1, Australia’s S&P/ASX 200 rose by 0.81% to 6,742.
The MSCI Asia ex-Japan index increased by 0.17%.
The holidays in China will continue for the rest of the week. However, the stock indexes across the Asia Pacific region started this month with positive results. The Chinese National Day is a week-long holiday. Thus activities related to the stock markets will be quite limited until the next week.
