Asian stocks dropped on concern over China’s stuttering economy and signs the Federal Reserve will keep interest rates higher for longer to tame inflation. Benchmark indexes fell across the region with some of the biggest declines in Hong Kong, South Korea and Australia. The MSCI China Index is on course to erase all its gains made since last month’s Politburo meeting. The losses follow a drop in US equities Tuesday when robust economic data added to concern the Fed will keep rates elevated for longer. China’s economic woes remained in focus with a report showing new-home prices fell for a second month in July, adding to fears over the ailing property sector. JPMorgan Chase & Co. cut its full-year growth forecast for the country to 4.8% from 5% after a raft of disappointing data for July while Macquarie Group lowered estimates for the yuan. While the market obviously is waiting for a stimulus bazooka, signals from the government show that they only are taking piecemeal approach, he said. The offshore yuan was steady after the People’s Bank of China sought to boost market sentiment with a stronger-than-expected currency fixing and its largest injection of short-term cash to the financial system since February. In the earnings pipeline Wednesday is Tencent Holdings Ltd. The company is expected to record its fastest pace of revenue growth in more than a year, fueling optimism the internet sector is emerging from a historic trough despite Chinese economic turmoil. US stocks had dropped Tuesday after retail sales beat forecasts, bolstering the case for further Fed tightening. That message was reinforced by Minneapolis Fed President Neel Kashkari, who said that while inflation has been coming down, “it’s still too high.” Major currencies were mixed. The kiwi gained after the Reserve Bank of New Zealand left its key rate unchanged as economists predicted, but said forecasts now show a small chance of another rate hike. While investors navigate a hawkish Fed and a slowdown in China, a devaluation in Argentina and Russia’s emergency rate hike on Tuesday to stem the ruble’s slide added to the risk-off sentiment. On the economic front, the UK reports inflation and the euro area will publish growth figures. Later, minutes from the Fed’s July policy meeting are due. Oil slipped for a third day, while gold edged higher. US After Hours DLO +33.5% on earnings and naming MELI exec as co-CEO; CAVA +7.8% higher in first earnings report since IPO; LRN +7.6%, HRB +5.9% higher on earnings; MRCY -10.7% lower on earnings.
Nikkei -1.36% Hang Seng -1.47% CSI -0.60% Shanghai -0.60% Shenzen -0.69%
Eur$ 1.0918 CNH 7.3185 CNY 7.2946 JPY 145.53 GBP 1.2707 CHF 0.8779 RUB 98.0833 TRY 27.0657 WTI$ 80.70 Gold 1,905 BTC 29,152 -0.06% ETH 1,822-0.30%
S&P -0.04% Nasdaq +0.01% EuroStoxx -0.44% FTSE -0.20% Dax -0.43% SMI -0.14%
Macro :
- Vietnam’s Richest Man Adds $30 Billion as EV Maker Goes Public
- Air Freight Activity Showing No Signs of Recovery, BMO Says
- Norway’s $1.4 Trillion Wealth Fund Returns 10% on Tech Surge
- UK 6% Mortgages vs. House Prices: Loan Supply Key in 2023 Battle
- Akamai Said to Price $1B Convertible Bonds at 1.125% Coupon
Keep an eye on :
Keep an eye on :
- CARLB DC : Carlsberg 1H Net Income Misses Estimates
- CLEU US : China Liberal Education Falls 44%: Chinese US Listings
- DEMANT DC : Demant Boosts FY Organic Revenue Forecast
- DEMANT DC : Demant Boosts FY Organic Revenue Forecast
- ESNT LN : Essentra 1H Revenue GBP166.3M
- GLB ID : Glanbia Raises FY Adj. EPS at Constant FX Growth View to 12%-15%
- GCY GY : Grand City Properties Boosts FY FFO I Forecast
- IMPN SW : Implenia 1H Ebit CHF49.9M Vs. CHF95.1M Y/y
- INTC US : Intel Is Said to See Tower Deal Failing to Win Chinese Approval
- HLUNB DC : Lundbeck Boosts FY Adjusted Ebitda Forecast
- MAU FP : Maurel & Prom to Buy Assala Energy for $730m
- NETC DC : Netcompany 2Q Gross Profit Misses Estimates
- NKT DC : NKT Maintains FY Oper Ebitda Forecast
- OXY US : Occidental to Buy Carbon Engineering for $1.1 Billion in Cash
- SAN FP : Sanofi Said to Have Been Mystery Buyer in Reata Bidding War
- STEAG GY : Kretinsky to Team Up With RAG Foundation for Steag Bid
- STORB SS : Storskogen 2Q Ebit Misses Estimates
- VOW GY : VinFast’s $65 Billion De-SPAC Valuation Vaults It Past Ford, GM