China’s stock market jumps 8.5% as investors rush in. Japan’s Nikkei falls nearly 5% on concerns the new Prime Minister there is an interest rate hawk. Australia’s housing market is softening. New Zealand business confidence takes another leap higher.
In our bonus Deep Dive interview, ANZ Economist Maddy Dunk says there are some silver linings in the recent bi-annual ANZ Core Logic Housing Affordability Report as affordability nationally worsened in June.
5 things to know:
Japan’s Nikkei fell nearly 5% yesterday on views the country’s new Prime Minister is an interest rate hawk. Meanwhile, China’s stock index rose 8.5% as investors rushed to get in ahead of a week-long holiday starting today, says ANZ Economist Bansi Madhavani. Iron ore prices also bounced on hopes stimulus will boost China’s housing market.
China’s official PMI measure of factory manufacturing improved to 49.8 in September. That’s still in contraction territory under 50, but was better than expected and the highest level in five months, says ANZ’s Chief Economist for Greater China Raymond Yeung.
Raymond also says there were positive moves by local governments in the mega-cities of Shanghai, Shenzhen and Guangzhou, which removed long-running restrictions on buying apartments.
Business confidence in New Zealand jumped in September as hope about lower interest rates ran through the economy. Actual experienced activity remains very weak, though, says ANZ New Zealand Chief Economist Sharon Zollner.
In Australia, private sector credit growth was 0.5% in August from July, which was was in line with expectations overall. However, the picture varies within the figures. ANZ Economist Maddy Dunk says business lending was strong, but there was a dip in housing lending growth.
Cheers
Bernard
PS: Catch you tomorrow with the latest on Australian retail sales.
