Post 2-month elevation, shares in Asia plums; oil recovers

The 600 million yuan ($94.53 million) two-year yuan-denominated tranch of the bond was priced at 4.15 per cent. The order book reached about 4.9 billion yuan from 71 accounts.

“Still, markets appear to be supported by expectations of more stimulus after action by the People’s Bank of China”, senior strategist at Sumitomo Mitsui Asset Management, Masahiro Ichikawa said.

The central parity rate of the yuan against the USA dollar is based on a weighted average of prices offered by market makers before the opening of the market each business day and also refers to the closing rate on the previous day, in conjunction with supply and demand condition and movement of major currencies. Moreover, the upward pressure on the Treasury yield resulting from China’s sales could undermine the health of the US financial system – positive news for the gold market (especially if the liquidation of Treasuries by China and other emerging markets prompts the Fed to adopt an even more dovish stance).

Shipments to the USA rose 6.7% in September in U.S. dollar terms.

Investors also are looking to Chinese inflation data due for release on Wednesday, according to the National Bureau of Statistics of China.

The euro was up 0.1 percent at $1.1364 and the yen was 0.2 percent stronger at 119.98 to the greenback.

“There remain a few obstacles facing China’s foreign trade growth”, Huang said, adding that the monthly export decline had narrowed.

While exports fell by a smaller percentage than economists expected, the trend still threatens to derail Beijing’s growth target of about 7% for the year. As in, we’ve seen stock markets around-the-world tear higher after the Federal Reserve backed off of a September (and now a 2015) rate hike, but we still haven’t seen any data suggesting that the slowdown has yet been quelled. “It was basically a fairly mixed report, but with last week’s impressive rally starting to look stretched, mixed Chinese data was taken as bad Chinese data”, IG’s market analyst Angus Nicholson wrote in a report issued late today. Iron ore imports increased to the highest level this year to near a record. Still, a sustained drop in imports would be a drag on the global economy, Zhu said in a phone interview.

ANZ and CIMB impress in this year’s Asiamoney’s Fixed Income Poll with ANZ topping the categories for regional credit and interest rates, while the Malayisan bank comes first in regional commodities services.

Sydney-listed Santos lost more than six per cent and Origin was 5.4 per cent lower.

In Australia, which counts China among its biggest trading partners, the Australian dollar was down 0.6% against the US dollar at $0.7320.