The main Asian indices registered significant increases this morning after several macroeconomic data was published which is inviting optimism before an imminent recovery. Among these publications the Gross Domestic Product (GDP) of Japan stands out, which increased by 5% between July and September 2020, compared to the drop of 8.2% in the previous quarter. This growth represents the greatest advance since 1980, the beginning of the historical series.
In China, it is now known that industrial production grew in October at a faster rate than expected, while retail sales continue to recover, although less than expected. Specifically, industrial production grew by 6.9% year-on-year, which means that economic activity is recovering after controlling infections of COVID-19.
On the other hand, this weekend, 15 Asian and Pacific economies signed a free trade agreement, perhaps the largest agreement of its kind in the world. The Regional Comprehensive Economic Partnership (RCEP) aims to progressively reduce tariffs and allow greater movement of goods between these regions. This association is made up of China, Japan, South Korea, Australia, New Zealand and the 10 members of the Association of Southeast Asian Nations (ASEAN).
Japan's Nikkei closed 2.05% higher and is now close to 26,000 points, while the Hang Seng ended the session with a 0.86% rally. The Shanghai index rebounded 1.11%.
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Source: Admiral Markets MetaTrader 5. Weekly Nikkei CFD Chart. Data range: from July 12, 2015, to November 16, 2020. Prepared on November 16, 2020, at 11:30 CET. Keep in mind that past returns do not guarantee future returns.
The European indices are following this trend, with rises of around 1%. Wall Street futures have also announced positive trends today.
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