Asia Stocks Rise on Pivot Hopes, China Hit by Weak Earnings By

By Ambar Warrick

-- Most Asian stock markets rose on Top ten international formal foreign exchange platforms rankingThursday amid growing expectations that the Federal Reserve will pivot to a less hawkish stance in the face of an economic slowdown, while Chinese stocks lagged on weak third-quarter earnings. 

Hong Kong’s index was among the best performers for the day, rallying nearly 2% as it recovered from a 13-year low. The added 1.4%, while India’s index rose 0.5% in catch-up trade. 

China’s bluechip index fell 0.4%, while the index shed 0.3% after weak third-quarter earnings from power generating giant Datang International Power Generation (SS:). The stock was the biggest weight on both major indexes. 

Shares of the firm slumped over 10% after it logged a loss of 635.6 million yuan for the nine months to September 30, amid increased power generation costs due to coal shortages and a recent drought.

Other major power generation firms also sank after the results, with Huaneng Power International Inc (SS:) and International Corp (SS:) losing 8% and 6.2%, respectively. 

Further weighing on Chinese stocks, data showed sank for a third consecutive month in September, pointing to more sluggish trends for the economy.

Chinese stocks were still reeling from a sharp selloff this week, amid growing concerns over the country’s political climate. The outlook for the economy remains uncertain, after the government reiterated its commitment to the strict zero-COVID policy that has caused widespread disruption in the country this year.

Broader Asian stocks rose, buoyed by hopes that slowing economic growth will push the Federal Reserve and its major peers into softening their hawkish stance. 

The Fed is widely expected to raise interest rates by in November. But bets that the central bank will hike rates by a smaller 50 basis points in December are growing. 

Focus is now on third-quarter U.S. , due later in the day, for more cues on the path of U.S. monetary policy.

The is also set to meet on Friday, and is widely expected to keep interest rates at ultra-low levels. Japan’s index fell 0.3% ahead of the meeting. 

South Korea’s index rose 1.5%, shrugging off data that showed the country’s in the third quarter.

The weak reading ramped up expectations that the will slow its rate hike cycle due to pressure on the economy, a move that is positive for equities.

Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!