China leads Asian markets higher as Xi Jinping makes economy friendly comments

The Asian stock markets were trading higher on 4 November (Wednesday) led by China's benchmark index after President Xi Jinping made economy friendly comments. Xinhua news agency quoted the president as saying that the country could maintain an annual economic growth of 7% over the next five years but there were uncertainties such as weak global trade and high domestic debt.

The Shanghai Composite index was up 4.31% at 3459.64, while Hong Kong's Hang Seng was up 1.95% at 23,009.16. India's BSE was up by 0.41% at 26,700.80 and South Korea's KOSPI was trading higher by 0.21% at 2,052.77.

Japan's benchmark index which was closed for trade yesterday was up 1.30% at 18,926.91. This was primarily after three firms affiliated with Japan Post made strong trading debuts as it saw huge investor interest for its $12bn (£7.8bn, €11bn) initial public offering (IPO).

Gavin Parry, managing director at Parry International Trading said, "The Japan Post IPO has performed as well as expected this morning, and on top of that we've seen a real sentiment boost based on the monster rally in the US."

Australia's S&P/ASX 200 increased by 0.06% to 5242.30. Reserve Bank of Australia (RBA) had announced yesterday (3 November) that it will hold rates for now with an option for further easing in the future.

The rise in Asian markets today is partly influenced by the positive close of stock markets in the West. Stocks of large American companies in the tech and energy sector drove higher and that resulted in an index of 100 major Nasdaq companies finishing at a record closing high yesterday.

In commodities, oil prices which have been negatively impacted in recent times by factors such as declining demand in China and increased production in Russia, took a breather as WTI Crude oil increased by 3.67% to $47.90 a barrel, while Brent rallied up 3.46% at $50.54 a barrel.