Asian stocks advanced as traders bet on a breakthrough for US debt-ceiling talks, which will remove a drag on global markets. Equities in Japan continued to rally after hitting a 33-year high. A gauge of Asian stocks is headed for its biggest gain since March, with benchmarks in Australia, Hong Kong and South Korea advancing. Japan’s Topix index climbed around 1%, with rising exports and a weakening yen helping to fuel positive sentiment. Tech stocks rallied in both Hong Kong and Japan, with Alibaba Group Holding Ltd. gaining 3% ahead of its earnings release Thursday. Chipmakers were among best performers on the Nikkei 225 after Japan Prime Minister Fumio Kishida met with global executives to boost the country’s domestic semiconductor sector. US futures were marginally lower in Asia after the S&P 500 and Nasdaq 100 closed near highs of the day, rallying more than 1% on debt-talks optimism. The CBOE VIX index of equity market volatility fell below 17 to close at the lowest level since the start of the month. President Joe Biden expressed confidence there will be no US default, and House Speaker Kevin McCarthy said reaching an agreement this week is “doable.” JPMorgan Chase & Co. chief Jamie Dimon said the US government “probably” will not default on its debt after he and other bank leaders met in Washington to discuss the debt limit. The dollar and Treasuries were little changed in Asia. That was after the yield on the US two-year note rose seven basis points on Wednesday, while the 10-year yield climbed three basis points to 3.56%. European Central Bank Vice President Luis de Guindos said the ECB has completed most of its tightening but there is still “a way to go.” The euro was little changed. Australia’s dollar dropped after the country reported an increase in unemployment, which reinforced the case for the central bank to stand pat at next month’s policy meeting. The yen drifted higher after falling almost 1% on Wednesday. The Japanese currency has dropped more than 3% this quarter as traders increasingly expect the central bank to maintain its ultra-loose monetary policy. Citigroup Inc. said the the officials’ lack of urgency to assess yield-curve control was received by markets as dovish. Nomura Holdings Inc. gained even after the Japanese company said it would cut its profit forecast.
US regional banks rallied after Western Alliance Bancorp reported growth in deposits boosted sentiment and eased worries about the health of the industry. All members of the KBW Regional Banking index advanced, pushing the benchmark 7.3% higher for its best day since January 2021. Walmart Inc. is due to report in the US. US After Hours
CSCO -4.2% and BOOT -15.5% lower on earnings; TTWO +8.5%, DLO +8% higher on earnings.
Nikkei +1.59% Hang Seng +0.99% CSI +0.33% Shanghai +0.81% Shenzen +0.30%
Eur$ 1.0832 CNH 7.0302 CNY 7.0134 JPY 137.53 GBP 1.2472 CHF 0.8994 RUB 80.3080 TRY 19.7704 WTI$ 72.60 -0.32% Gold 1,979 -0.15% BTC 27,270 -0.25% ETH 1,822 -0.26%
S&P -0.08% Nasdaq -0.03% EuroStoxx +0.56% FTSE +0.47% Dax +0.41% SMI
Macro :
- BofA Says an Ominous Signal From S&P 500 Is Pointing to Gains
- Investor Flows Show Some Preparing for 2H Recession, EPFR Says
- Priced-for-Perfection Luxury Goods Offset Depressed Auto Value
Keep an eye on :
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- BNP FP : Deutsche, BNP, Peers €680 Billion CRE Loan Risk Clearer After 1Q
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- DLAR LN : De La Rue Investors Push for Nat Rothschild as Next Chair: Sky
- ERICB SS : Cisco Orders Slow as Customers Weigh Uncertain Economic Outlook
- ESI FP : ESI Is Said to Weigh Sale With Dassault, Buyout Firms Interested
- ETL FP : Viasat 4Q Adjusted EPS Beats Estimates
- FUTR LN : Future PLC 1H Revenue Beats Estimates
- GALP PL : Portugal’s ENSE Says Gasoline Consumption Rose 24% in April
- IDR SM : Ex Renault Spain CEO Mozos Frontrunner for Indra CEO: Expansion
- NEWR US : Software Company New Relic in Talks to Be Sold -- WSJ
- NOKIA FH : Cisco Orders Slow as Customers Weigh Uncertain Economic Outlook
- SPM IM : Saipem Wins Offshore Contracts Valued at About $850m
- SHEL LN : Shell Said to Plan Sale of French Floating Wind Power Unit Eolfi
- SON PL : Sonae 1Q Net Income EU26M Vs. EU42M Y/y
- STM FP : UK’s Sunak to Unveil Semiconductor Partnership With Japan: FT
- TRI FP : Trigano 1H Net Income EU121.7M Vs. EU141.3M Y/y
- VOW GY : VW Brand Plans €3 Bln in Savings, Handelsblatt Says