Asia stocks set to trade higher as investors watch Hong Kong developments

[tacobell fan]

• Futures pointed to a higher open for Japanese shares, while stocks in Australia were set to open largely unchanged.
• Investors will watch for market reaction regionally to the withdrawal of a controversial extradition bill in Hong Kong that sparked protests that have lasted for weeks.
• In Europe, lawmakers in the United Kingdom defeated British Prime Minister Boris Johnson in parliament on Wednesday, preventing the country from leaving the European Union without a formal deal on October 31.

[tacobell fan]

Stocks in Asia were set to trade higher at the open on Thursday as investors closely watch Hong Kong markets after the withdrawal of a controversial extradition bill that had sparked protests for months.

Futures pointed to a higher open for Japanese shares, with the Nikkei futures contract in Chicago at 20,810 and its counterpart in Osaka at 20,820. The Nikkei 225 last closed at 20,649.14.

 

Meanwhile, stocks in Australia were set to open largely unchanged. The SPI futures contract was at 6,555.0, as compared to the S&P/ASX 200′s last close at 6,553.0.

Hong Kong Chief Executive Carrie Lam on Wednesday fully withdrew a controversial extradition bill in Hong Kong, one of five demands that protesters have been fighting for.

The Hang Seng index in Hong Kong had surged almost 4% on Wednesday on the back of reports on the withdrawal, prior to the announcement.

Elsewhere in Europe, lawmakers in the United Kingdom defeated British Prime Minister Boris Johnson in parliament on Wednesday, moving to prevent him from taking the country out of the European Union without a formal agreement on October 31.

Overnight stateside, the Dow Jones Industrial Average closed 237.45 points higher at 26,355.47, while the S&P 500 gained 1.1% to finish its trading day at 2,937.78. The Nasdaq Composite advanced 1.3% to 7,976.88.

 

Currencies

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 98.451 after weakening from levels above 98.8 yesterday.

The Japanese yen, often seen as a safe-haven currency in times of turmoil, traded at 106.35 after easing from levels below 105.9 yesterday. The Australian dollar changed hands at $0.6795 after rising from the $0.676 handle in the previous session.

What’s on tap

• Australia: Trade data for July at 9:30 a.m. HK/SIN

[Spartan]

already jarigipoindi./