Asian stocks were off sessions highs Monday and the dollar rose as investors reacted to surprise interest-rate cuts in China and data highlighting its economic travails, which are dimming the global outlook. China and Hong Kong shares struggled, leaving an Asian equity indexwith a gain of less than 0.5%. Japan was the key prop with the Nikkei 225 set to erase its 2022 losses. S&P 500 and Nasdaq 100 futures dipped but Europe’s advanced. Data showed China’s retail sales, investment and industrial production for July all missed economists’ estimates. The central bank had earlier unexpectedly cut borrowing costs. Chinese bond yields and the offshore yuan fell. Elsewhere, Treasury yields were little changed and the bond curveremained deeply inverted, pointing to worries that the Federal Reserve will tip the US into an economic contraction in a campaign against high inflation. Equity markets in recent weeks have drawn succor from signs of slowing price pressures, which stirred hopes of a shift by the Fed to less aggressive monetary tightening.
But China’s faltering economy shows many hurdles still lie ahead for a near-13% rebound in global stocks from June lows. The bounce in world shares has reduced this year’s losses to about 13%. Investors are also keeping a wary eye on US-China tension. A US congressional delegation landed in Taiwan on Sunday for a two-day visit. House Speaker Nancy Pelosi’s stopover on the island, which China regards as part of its territory, led Beijing to conduct some of its most provocative military drills. Oil extended losses, gold retreated below $1,800 an ounce and Bitcoin hovered near $25,000.
Nikkei +1.16% Hang Seng -0.01% CSI +0.12% Shanghai +0.12% Shenzen +0.56%
Eur$ 1.0243 CNH 6.7719 CNY 6.7635 JPY 133.21 GBP 1.2113 CHF 0.9424 RUB 61.4619 TRY 17.9560 WTI$ 91.11 -1% Gold 1,793.35 -0.50% BTC 24,775 1.80% ETH 1,965.39 +1.5%
S&P -0.27% Nasdaq -0.28% EuroStoxx +0.29% FTSE +0.42% Dax +0.23% SMI +0.18%
Macro :
- Goldman Strategists Say European EPS May Not Fall Until 2023
- China Crisis Wipes Out $90 Billion of Developer Market Value
- Bitcoin Tops $25,000 for First Time Since June Amid Crypto Rally
- Tech Giants Share Details of Prized Algorithms With Beijing
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