Australian shares close at record high on a string of acquisition deals
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Australian shares closed at a record high on Monday after a string of acquisition deals, including the country’s largest-ever buyout involving buy-now-pay-later firm Afterpay and Jack Dorsey-led Square, buoyed investor sentiment.
Shares of Afterpay surged 18.8% after the company said that it will be acquired by New York-listed fintech company Square in a $29bn deal.
The benchmark S&P/ASX 200 index rose 1.3% to 7,491 points on Monday.
Oil Search-Santos merger
Oil Search was among the most heavily-traded stocks on Monday after the oil and gas explorer accepted bigger rival Santos’ improved takeover deal.
The Oil Search-Santos merger deal will create one of Australia’s largest oil and gas firms with a market capitalisation of A$21bn.
Shares of Oil Search jumped 4.7% to A$3.9 and those of Santos inched 0.6% higher.
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China shares rise
China’s blue-chip CSI 300 index saw its best day in over six-and-a-half months, advancing 2.6% on Monday as foreign capital flowed in to the market.
Data on Hong Kong Stock Exchange’s website showed foreign investors turned net buyers on Monday, investing about RMB88.53bn in Mainland China shares through the Northbound leg of the Stock Connect Programme.
The Stock Connect programme between stock exchanges of Hong Kong and Mainland China allows local and foreign investors to invest in certain companies listed in Shanghai and Shenzhen via the Hong Kong Stock exchange.
China Evergrande Group jumps
Hong Kong’s Hang Seng index rose 0.9% helped after automaker BYD and real estate developer China Resources Land emerged as the top gainers on the index, advancing 7.8% and 4.6%, respectively.
Hong Kong-listed shares of HSBC Holding gained 0.9% after the company said quarterly profit rose on release of loan provisions.
Shares of debt-laden China Evergrande Group jumped 7% after the company announced a unit stake sale for HK$3.25bn ($418m). Internet companies Tencent Holdings and Alibaba Group Holding lost over 1% on Monday. Alibaba Group is expected to report its quarterly earnings on Tuesday.
Japan recovers
In Japan, the Nikkei 225 index bounced back from its worst month since March 2020.
Benchmark Nikkei 225 index rose 1.8% to 27,781 points while broader TOPIX 500 gained over 2% to 1,505.62 points.
Investor concerns lingered after the Japanese government on Friday extended COVID-related emergency measures until the end of August, while adding three new prefectures near Tokyo under the state of emergency.
KOSPI up
South Korea’s KOSPI index climbed 0.7% higher as data showed that monthly exports jumped to a record high in July on the back of surging global demand for semiconductors.
Index heavyweights Samsung Electronics and SK hynix rose 1% and 3%, respectively.
Elsewhere, Philippine shares rebounded to gain 2.8% on Monday, having lost 3.5% in Friday’s session.
Above 1,300 points
Meanwhile, Thai shares remained muted on Monday and Vietnam’s HOSE index gained nearly 1% to hover above 1,300 points.
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Read more : HSBC Q2 profit more than doubles after reducing loan provisions
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