Asian equities rebound after last week's decline, but sentiment remains fragile

Asian equities rallied after last week's sharp declines on Monday, although confidence remained fragile amid growing concerns over corporate earnings and slowing global economic growth.

The general sentiment of the markets has been affected by a series of negative factors resulting from the intensification of the relationship between China and the United States. trade dispute related to concerns about the profits of US companies, the misfortunes of the Italian budget and the Federal Reserve rate hike.

The largest MSCI share of Asia-Pacific stocks outside Japan rose 0.4% after dropping nearly 4% last week.

Among the emerging markets, Brazil-related values ​​benefited from the South American presidential elections, which saw the victory of the far-right candidate Jair Bolsonaro, whose campaign was centered on the promise of purifying politics and repressing The crime.

Japan's Nikkei rose 1%, while Australia's rose by 0.8%. KOSPI of South Korea added 0.7%.

The S & P 500 and Dow E-Mini futures were also up 0.3% each after a tumultuous week on Wall Street.

Chinese stocks, however, resisted the trend, with the CSI 300 first-order index falling 0.9%. Hong Kong's Hang Seng Index jumped 0.7%.

Analysts warn of greater volatility after heavy losses suffered by major stock indexes, which left investors with negative returns for the year. The Bears are on the rise, with some indices already in official correction territory in the face of growing concerns about corporate earnings and global growth. "The sentiment will continue to dominate the short-term market direction and investors will pay close attention to newswires in the coming weeks," said Nick Twidale of Rakuten Securities Australia in Sydney.

"The earnings season continues … and political tensions in the United States, Italy, Germany and the United Kingdom will continue to worsen the volatility of their respective markets while contributing to global global flows," added Twidale.

The S & P 500 finished at its lowest level since early May Friday and flirted with the territory of the correction, under pressure of heavy losses in technologies and Internet shares.

Data released last week showed that US economic growth grew by 3.5% annualized in the third quarter, compared with 4.2% in the second quarter, partly due to lower soybean exports from the US. tariffs.

The poor economic indicators coming from China recently should also weigh on the opinion of investors.

Data released over the weekend show that profit growth in China's industrial enterprises slowed for the fifth consecutive month in September, as sales of raw materials and manufactured goods declined further.

The Australian dollar, which is often traded against the Chinese yuan as a liquid substitute, fell 0.1% to $ 0.7088, after falling 0.4% last week.

Brazilian listed exchange-traded funds (ETFs) in Tokyo jumped nearly 14 percent to a 7-month-and-a-half peak after Bolsonaro, a former army captain, was propelled to victory in the US. Presidential election.

The Japanese yen, a safe-haven badet, benefited from mbadive sales of riskier badets, as unwinded investors were exposed to transaction risks. He gained 0.6% last week and was last at 111.98 for a dollar.

During this week, investors will closely follow the announcement of the monetary policy of the Bank of Japan on Wednesday.

The dollar index rose 0.1% to 96.471 after rising 0.7% last week.

The euro has come close to its lowest level in more than two months to stay at 1.1394 USD. Investors breathed a sigh of relief after German Chancellor Angela Merkel's junior partners gave her conservatives until next year to get more political results.

However, there were concerns about his future after both parties suffered in Sunday's regional elections.

The sterling held nearly two months at a low of 1.2775 USD, an advance on the UK annual budget expected Monday. Finance Minister Philip Hammond will likely ask his divided Conservative party to support government pressure for a Brexit deal or to jeopardize a long-awaited easing of austerity.

In the commodities sector, US oil firmed up by 30 cents to $ 67.89 per barrel and Brent crude by 34 cents to $ 77.96.

The gold spot was barely changed to 1232.21 oz.