In Japan, the government agency that has been delivering mail in Japan since the 19th century, began trading earlier, jumping 26% from its premarket IPO price of Yen1,400. The Hang Seng was down 0.6% and the Shanghai Composite fell 0.2%.
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Meanwhile, Australia’s S&P/ASX 200 gained 0.42% but closed down 0.5% for the week, as the banking sector marked its second consecutive week of decline.
In November, investors have focused on country-specific news, explaining the “divergence between markets”, said Ilya Feygin, managing director at New York-based brokerage WallachBeth Capital. Through the London-Hong Kong connect, HKEx hopes to lower trading costs and improve the liquidity of the market. In October, Draghi had said the central bank might announce further measures as soon as December.
Overnight, the iShares China Large-Cap ETF (FXI) was little changed, the iShares MSCI China ETF (MCHI) rose 0.2%, the Deutsche X-Trackers Harvest CSI 300 China A-Shares Fund (ASHR) fell 0.7%, the Market Vectors China AMC ChiNext ETF (CNXT) was down 0.4%. Taiwan’s Taiex index climbed 1.7%.
A few analysts expect monthly employment data out of the US on Friday to firm expectations of a December rate increase.
During her regular semi-annual testimony to Congress, Ms Yellen said an interest rate hike in December would be a “live possibility” if the economy stays on track.
The index was given a boost as the yen weakened against the dollar, which is good for Japan’s big exporters as it makes their goods cheaper to buy overseas. The euro rose slightly to $1.0869 from $1.0866 while the dollar fell to 121.48 yen from 121.51 yen. Japan was powered by a blockbuster share sale. Commonwealth lost 1% after reporting higher charges for bad and doubtful debts.
(7312.TO) were down 13% after the air-bag maker agreed to accept a $70 million fine and an outside monitor under a proposed settlement with the top US auto-safety regulator over reporting lapses involving rupture-prone air bags (http://www.marketwatch.com/story/car-safety-regulator-reaches-air-bag-settlement-with-takata-2015-11-03).
“The Shenzhen-Hong Kong connect will be launched this year, which shows China’s capital market opening a new route to link with the world”, Zhou Xiaochuan, head of the People’s Bank of China (PBOC), said in an article posted on the PBOC website on Tuesday.
Banks and brokerages underpinned the bourse; Sumitomo Mitsui Financial Group and Mitsubishi UFJ Financial Group rallied almost 1 percent each, while Daiwa Securities and Nomura Holdings elevated 1.8 and 0.3 percent respectively.
US stocks were mostly lower in early trading Tuesday as investors worked through a raft of corporate news and prepared for key USA economic data later this week. The gains were enough to tip the Shanghai Composite into bull territory, an astounding milestone after a volatile summer wiped out trillions of dollars in value from mainland equities and rattled global markets.
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“Retail investors took profit and sold shares of securities, banks and other blue chip companies, which weighed on the composite index”, said Tian Weidong, an analyst at Kaiyuan Securities in Xian.
