Asian stock markets were higher on Wednesday following the Dow industrial’s record-high finish as upbeat corporate earnings reports and China factory data boosted investor confidence. Apple’s surprise earnings report pushed up share prices of its Asian suppliers.
KEEPING SCORE: Japan’s Nikkei 225 rose 0.6 percent to 20,108.10 and South Korea’s Kospi gained 0.3 percent to 2,430.30. Hong Kong’s Hang Seng index advanced 0.5 percent to 27,667.39 while the Shanghai Composite index added 0.1 percent to 3,294.41. Australia’s ASX/S&P 200 bucked the region’s trend, falling 0.5 percent to 5,742.90 as commodity prices dropped. Stocks in Southeast Asia were mostly higher.
ECONOMIC DATA: Analysts said robust Chinese factory output reported earlier this week continued to embolden investors as they awaited more data releases. On Tuesday, Caixin/Markit factory purchasing managers’ index, a private Chinese manufacturing survey, showed activity expanded last month to its highest level in four months. Overnight in the U.S., the Institute for Supply Management reports showed output by U.S. factories expanded again last month though at a slower pace than in June. Later Wednesday, U.S. payroll processor ADP will give its employment updates for July. But the biggest highlight will be the U.S. jobs report due Friday.
ANALYST’S COMMENT: “Despite the blemish from softer crude prices, markets in the Asian region are poised for further up moves in the morning,” said Jingyi Pan, a market strategist at IG in Singapore. “Early movers in the region, with the exception of the Australian market, continued to bask in the glow of the positive Caixin PMI data from Tuesday and could continue this trend midweek.”
IPHONE IMPACT: Apple reported Tuesday that its quarterly earnings rose 12 percent to $8.7 billion, exceeding expectations, as demand for iPhones rose and gave an upbeat revenue forecast for the current quarter, easing concerns about production problems for the next-generation iPhone. Shares of Apple’s suppliers in Asia rose. Samsung Electronics Co. rose 0.6 percent and LG Display Co. jumped 2.1 percent. Taiwan-based contract manufacturer Foxconn Technology Co., which assembles Apple’s iPhones, climbed 2.2 percent.
WALL STREET: U.S. stocks finished higher on Tuesday. The Standard & Poor’s 500 index rose 0.2 percent to 2,476.35. The Dow Jones industrial average climbed 0.3 percent to 21,963.92, closing at a record high for the fifth day in a row. Nasdaq composite added 0.2…