Tokyo stocks surge, Chinese shares decline

Tokyo’s Nikkei 225 index gained 0.8% to 39,910.55 on Monday as markets reopened after a long weekend. Investors reacted positively to the S&P 500 reaching a record high in the U.S. The Kospi in Seoul gained 0.4% to 2,633.45. In Australia, the S&P/ASX 200 was up 0.8% to 8,318.40. However, Chinese shares extended losses after the government reported weaker-than-expected export growth in September. The Shanghai Composite index lost 2.5% to 3,201.29, while the Hang Seng in Hong Kong gave up 3.7% to 20,318.79. Investors are seeking clarity around fiscal stimulus support from Chinese authorities, but the lack of commitment remains a source of reservation for risk-taking in Chinese equities. The yuan also faced a decline, reflecting broader financial market movements.

Tokyo stocks climb, Chinese dip

In other news, Canada’s annual inflation rate slowed more than expected to 1.6% in September, mainly due to cheaper gasoline. However, indicators of underlying price pressures held steady. Germany’s DAX gained 0.3% at midday in Europe, while the CAC 40 in Paris dropped 0.9% and Britain’s FTSE 100 lost 0.4%. The dollar fell to 149.38 Japanese yen from 149.83 yen. The euro ticked down to $1.0903 from $1.0911. This week will have few top-tier economic reports outside of an update Thursday on sales at U.S. retailers. The emphasis will be on corporate earnings reports, which will intensify this week after big banks began the reporting season last week.