Most Asian shares rose after traders boosted bets on Federal Reserve interest-rate cuts this year. China stocks erased earlier losses as investors shrugged off a central bank decision to keep a key policy rate on hold. The MSCI Asia Pacific share index climbed for a third session after a surprise decline in US producer prices Friday reinforced bets the Fed will lower borrowing costs in coming months. China’s CSI 300 Index swung to a gain amid speculation officials may cut the required reserve ratio in the coming months after the People’s Bank of China unexpectedly left the rate on its one-year policy loans — called the medium-term lending facility — at 2.5% Monday. That was contrary to expectations among economists that it would lower the rate by 10 basis points. Baidu Inc. shares slumped as much as 10% in Hong Kong following a report that linked its Ernie AI platform to key Chinese military research into artificial intelligence. The decline dragged down other Hong Kong-listed tech shares. Stocks gained in Taiwan after the Democratic Progressive Party won the presidential election and the more China-friendly Kuomintang gained too few seats to control the assembly. Japanese stocks rose after both the Topix and the Nikkei 225 indexes climbed to 34-year highs last week amid inflows from overseas investors. US stock futures were little changed in Asia after the S&P 500 closed a fraction higher Friday. US markets are shut Monday for a holiday. The dollar was mixed while Treasury 10-year futures were little changed. There is no cash trading of Treasuries due to the US holiday.
Swaps traders see an almost 80% chance of Fed’s easing cycle will start March, up from about 62% earlier last week, according to data compiled by Bloomberg. The market is pricing almost 170 basis points of Fed rate cuts this year which “continues to strike us as unreasonably aggressive, especially as the real sector data may show the US economy continued to grow above the 1.8% pace in Q424,” said Marc Chandler, chief market strategist at Bannockburn Global Forex. “The real sector data in the coming days may encourage some paring back of the aggressive wagers.” Oil was little changed as the risk that airstrikes by the US and its allies against the Houthis would ignite a wider conflict and disrupt crude flows from the Middle East was balanced by softening fundamentals.
Nikkei +0.91% Hang Seng -0.40% CSI -0.17% Shanghai +0.10% Shenzen -0.42%
Eur$ 1.0961 CNH 7.1815 CNY 7.1695 JPY 145.17 GBP 1.2755 CHF 0.8528 RUB 88.3870 TRY 30.0855 WTI$ 72.75 +0.10% Gold 2,055 +0.25% BTC 42,574 +0.14% ETH 2,509 -0.66%
S&P +0.08% Nasdaq +0.24% EuroStoxx +0.40% FTSE +0.16% Dax +0.48% SMI +0.30%
Macro :
- Dourest Strategist Now Sees S&P 500 Ending 2024 Near 5,000
- New Bull Case for Stocks in Soon-to-Fall Cash Yields, BofA Says
- Japan, US Agree on Promoting Investment Between Two Countries
- Private equity has to make returns the hard way, says Goldman Sachs executive
- Bitcoin’s ETF Hangover Hands Token its Worst Streak in a Month
- Goldman’s Kostin Says Buy Small Caps, Consumer Staples Stocks
Keep an eye on :
Keep an eye on :
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