By Brendan Ahern,Senior Contributor

Copyright forbes

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Asian equities mostly followed Wall Street higher overnight as Mainland China’s STAR Market and Korea outperformed, while the Philippines and Hong Kong’s Hang Seng Tech Index underperformed. Mainland China’s markets reopened for the first time since September 30th, concluding the “Golden Week” national holiday and catching up with gains offshore.

Upon reopening, the Shanghai Composite climbed to its highest level in over a decade, led by mining stocks and precious metals on new export controls and gold reaching record highs. This was the first market session in a month with major political events on the docket, including meetings between China’s leadership in Beijing and a potential meeting between Presidents Trump and Xi on the sidelines of the APEC summit. The market appears to be hoping for good outcomes based on the Mainland’s rise upon reopening, though there were other catalysts, too.

Growth stocks were mixed overnight, as were internet stocks. Alibaba fell -2.4%, while Trip.com gained +1.8% on positive travel data from the holiday week, discussed below. Video platform Bilibili gained +6.7% on strong growth and increased share buybacks. Tencent Music Entertainment was also a top-performer, continuing this year’s trend of video platforms outperforming E-Commerce giants within the internet sector.

During the week-long national holiday, China’s domestic tourism increased 15.9% from last year, based on over 800 million individual trips, according to data from Wind. Total tourism spending increased 15.3% from last year, reaching over $100 billion. Cross-border travel was also on the rise, increasing 6.3% from last year.

The Fourth Plenary Session of the 20th Central Committee is focusing on drafting the “15th Five-Year Plan” this month. According to a large investment bank, the A-share market is expected to enter a critical period, which will include a recovery in market risk appetite and liquidity, as a result.

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Battery names benefited from breakthroughs in solid-state battery technology, as China-based researchers published new research in international journals. CATL gained +2.0%.

Southbound Stock Connect flow was lighter than expected, considering that the channel was closed for an entire week. Nonetheless, net flow was positive at nearly $400 million. Interestingly, Hong Kong’s volume remained high, even without a significant southbound inflow, based on the one-year average. Perhaps that means that more foreign investors and traders are getting involved?

Hang Seng Bank gained +26% on a privatization offer from HSBC.

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Last Night’s Performance

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Last Night’s Exchange Rates, Prices, & Yields

CNY per USD 7.12 versus 7.12 on 9/30

CNY per EUR 8.27 versus 8.27 yesterday

Yield on 10-Year Government Bond 1.85% versus 1.86% on 9/30

Yield on 10-Year China Development Bank Bond 1.97% versus 1.98% on 9/30

Copper Price 4.19%

Steel Price 0.19%

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