Stocks in Asia rose Thursday for the first time this week, as a tech-fueled rally on Wall Street spread across the region. Risk appetite returned as US inflation data for August supported bets for a Federal Reserve rate cut next week. Benchmarks in Japan, South Korea and Taiwan advanced, pushing the MSCI Asia-Pacific Index to the biggest gain in almost a month. “The tech rebound and increased appetite for risk-taking are enjoyed by the Asian markets as well,” said Jun Rong Yeap, market strategist at IG Asia. “Rate expectations are still split on what will come beyond September, so that may still see some caution creeping back in as the Fed meeting nears,” he said.
Traders have swung between optimism that the Fed will guide the US economy to a soft landing and fear that the central bank has left it too late to cut rates. While swaps have now priced in a 25 basis point rate reduction next week, debate over the path for further reductions continues, and some investors say markets have overpriced expectations. In Japan, the Nikkei index halted a seven-day losing streak as the US inflation print pulled the yen down from its strongest level against the dollar since December. A region-wide gauge of tech stocks rose more than 3% after Nvidia Corp. jumped 8.2% overnight, while Taiwan Semiconductor Manufacturing Co. was among top gainers on the regional index. Chinese stocks were mixed. The so-called core consumer price index — which excludes food and energy costs — increased 0.3% from July, the most in four months, and 3.2% from a year ago, Bureau of Labor Statistics figures showed Wednesday. The three-month annualized rate advanced 2.1%, picking up from 1.6% in July, according to Bloomberg calculations. An index of the dollar was steady after falling Wednesday. Oil held gains from Wednesday as Hurricane Francine ripped through key oil-producing zones in the Gulf of Mexico, prompting traders to cover bearish bets. Bank of Japan policy board member Naoki Tamura sent the yen slightly upward with comments about lifting its benchmark rate to at least 1% by the end of its projection period. On Wednesday, another board member, Junko Nakagawa, said the central bank will continue to adjust policy provided the economy performs in line with projections in comments that sent the yen higher. Japan’s producer price index rose less than expected in August. Other data set for release in Asia includes producer prices for Hong Kong, inflation and industrial production in India and a rate decision in Pakistan. Investors are also showing new interest in Southeast Asian equities, which have emerged as a favored trade among fund managers for the Fed’s policy pivot. Whether the economy is entering a soft landing that only requires a series of modest rate cuts, or heading for a harder landing at some stage in the next year is the biggest conundrum for investors. Currently, Fed swaps are pricing in over 140 basis points of rate cuts by the Jan. 29 rate decision, equivalent to roughly two half-point moves over the next four gatherings barring no intra-meeting event. Guha noted that if the Fed doesn’t cut rates by 50 basis points next week, it will possibly do that in November. Treasuries were steady. Australian and New Zealand yields were slightly higher. In corporate news, OpenAI is in talks to raise $6.5 billion from investors at a valuation of $150 billion, according to people familiar with the situation. Nvidia Corp. Chief Executive Officer Jensen Huang said the limited supply of their products has frustrated some customers and raised tensions. Alimentation Couche-Tard Inc. is discussing improving its takeover proposal for Seven & i Holdings Co. with the goal of convincing the Japanese convenience store operator to start engaging in discussions, people with knowledge of the matter said. US After Hours NTGR +23.4% roaring higher on settlement agreement and raised guidance; OXM -9.1% slides on lackluster earnings.
Nikkei +3.42% Hang Seng +1.11% CSI -0.08% Shanghai +0.14% Shenzen +0.02%
Eur$ 1.1019 CNH 7.1242 CNY 7.1187 JPY 142.78 GBP 1.3050 CHF 0.8524 RUB 91.5426 TRY 34.0078 WTI$ 67.95 +0.95% Gold 2,520 +0.33% BTC 58,030 +0.93% ETH 2,359 +0.46%
S&P +0.18% Nasdaq +0.26% EuroStoxx +1.53% FTSE +1.17% Dax +1.16% SMI +0.62%
Macro :
- BEL 20 Index Unchanged in September Quarterly Review
- Oil Jumps as US Gulf Hurricane Spurs Short Covering by Traders
- As EVs Ebb, The Gas-Guzzling, Huge Engine Supercar Rises Again
- Biden Drug Pricing Law Threatens New Products, J&J’s Duato Says
- Oil Groups Appeal Ruling They Say Threatens Gulf Drilling
- Watch European Miners as Aluminum, Copper and Iron Ore Climb
- European Stocks Set to Gain Ahead of ECB Interest Rate Decision
Keep an eye on :
Keep an eye on :
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- AIR FP : China Development Bank Leasing Unit Buys 80 Airbus A320neo Jets
- AKELD SS : Akelius Residential Sells Castellum Shares to Akelius Apartments
- BALN SW : Baloise 1H Profit CHF219.8M Vs. CHF205.7M Y/y; Refocus Strategy
- BA US : Boeing CEO Warns Workers Strike Would Jeopardize Its Recovery
- BOL SS : Boliden Says Odda Smelter Cost Raised by €100M Due to Delays
- CWG LN : Canary Wharf credit rating cut deeper into junk by Fitch - FT
- CCO CN : Asset Managers Are Now Investing in Once-Shunned Nuclear Stocks
- ATD CN : Couche-Tard Is Said to Discuss Higher Price for 7-Eleven Owner
- DSV DC : DSV Said In Advanced Talks to Buy €14 Billion Deutsche Bahn Unit
- DND CN : Activist Shareholder Blasts Dye & Durham M&A, Calls for Meeting
- EQT SS : EQT Explores Sale of Banking Circle: Reuters
- PRT IM : Esprinet Sees FY Adjusted Ebitda EU66M to EU71M, Est. EU70.4M
- HOLN SW : Holcim Argentina Sees Biggest Rise Since November on New CEO
- JNJ US : Biden Drug Pricing Law Threatens New Products, J&J’s Duato Says
- NOVOB DC : *NOVO ADRS RISE TO SESSION HIGH, UP 3%; LILLY SHARES GAIN 1.6% *ROCHE ADRS DROP 3.6% ON OBESITY PILL DATA
- MSFT US : OpenAI Fundraising Set to Vault Startup’s Value to $150 Billion
- LUN CN : Lundin CEO Says Potential Buyers Are Eyeing Its European Mines
- NOVOB DC : *NOVO'S AMYCRETIN SAFETY ISSUES `A LITTLE HIGH': DEUTSCHE BANK
- NVDA US : US Closer to Allowing Nvidia Chips for Saudi Arabia: Semafor
- PGHN SW : BlackRock, Partners Give Retail Investors Private Markets Access
- ROG SW : Roche Tumbles on Obesity Pill’s Side Effects; Rivals Climb
- RCL US : 12-year-old Dies in Fall From Balcony on Royal Caribbean Cruise Ship
- SAN FP : Sanofi, RadioMedix, Orano Med Sign Deal for Rare Cancer Therapy
- 3382 JT : Seven & i Appoints Nomura to Advise on Couche-Tard Offer: FT
- STLAM IM : Stellantis May Be Next Carmaker Warning on Profit, MS Says
- STLAM IM : Stellantis May Be Next Carmaker Warning on Profit, MS Says
- STLAM IM : Stellantis’ US Dealers Call Out CEO Tavares for Damaging Brands
- TLGO SM : Spain Vetoed Hungarian Train Group Bid on Ukraine Concerns: FT
- UBI FP : Grand Theft Auto VI Competition Fears See Ubisoft Bull Backtrack
- X US : Biden Is Urged to Reconsider $14 Billion US Steel Takeover (2)