Asian stocks advanced on Monday led by a rally in Hong Kong technology shares, while hopes of lower US interest rates pushed the region’s currencies to the highest level in five months against the greenback. A gauge for Asian shares rose, following its best week in over a year. Equity markets in China rose as an index for Hong Kong tech climbed over 2.5%, propelled by JD.com Inc., whose shares surged the most since June after reporting unexpectedly strong results. Contracts for European and US equities also rose. Meanwhile, the Bloomberg Asia Dollar Index gained as much as 0.6%, while the yen soared 1%. Monday’s activity suggests ebbing concerns of a US recession and the prospect of lower borrowing costs are lifting sentiment across the region. The major signpost for the week will be on Friday, when Federal Reserve Chairman Jerome Powell is expected to give fresh insights on the course of US monetary policy at the central bank’s annual confab in Jackson Hole. Goldman Sachs at the weekend trimmed the probability of a US recession in the next year to 20% from 25%, citing last week’s retail sales and jobless claims data. If the August jobs report set for release on Sept. 6 “looks reasonably good, we would probably cut our recession probability back to 15%,” Goldman economists led by Jan Hatzius wrote in a report to clients on Saturday. In Asia, investors will be looking this week to central bank meetings in Indonesia and South Korea for signs of policy easing, while the Thailand decision will be crucial following reports the nation’s new prime minister may abandon a key stimulus package. Stronger Asian currencies which have benefited from improved risk sentiment should bring faster policy rate cuts by many Asian central banks, Tomo Kinoshita, global market strategist at Invesco Asset Management Japan, said on Friday. Bank of Japan Governor Kazuo Ueda is scheduled to attend a special session at parliament this week to discuss the July 31 interest rate hike, which roiled global markets. Hedge funds have turned bullish on the nation’s currency for the first time since 2021, which marks a sharp turnaround from the extremely negative sentiment seen among these traders as recently as early July. Large investors, such as Vanguard, are still betting on more interest rate hikes in Japan in the coming months, even after a sharp decline in market pricing for more tightening this year. The yen rose for a second session on Monday to trade at around 146 per dollar, as the nation’s equities fell for the first time in six days. In China, authorities are expected to keep the 1- and 5-year loan prime rates steady on Tuesday after the People’s Bank of China last week pledged further steps to support economic recovery, while cautioning that it won’t be adopting “drastic” measures. Markets will also be monitoring Chinese automakers including Xpeng Inc., Geely Automobile Holdings Ltd. and Xiaomi Corp., who all should report higher vehicle sales. Challenges remain high though, as competition heats up and the European Union moves ahead with tariffs. Oil declined for the fourth time in five sessions as traders tracked US-led efforts to secure a cease-fire in the 10-month old Middle East, while the Russia-Ukraine war is escalating. Gold wavered near an all-time high on hopes the Fed is edging closer to cutting rates. Elsewhere, iron-ore had its worst week since early June on concern that a steel-industry crisis rippling across China will sap demand, while supplies from miners remain robust.
Nikkei -1.74% Hang Seng +0.86% CSI +0.24% Shanghai +0.38% Shenzen -0.12%
Eur$ 1.1035 CNH 7.1433 CNY 7.1436 JPY 146.15 GBP 1.2953 CHF 0.8639 RUB 89.5996 TRY 33.6908 WTI$ 76.39 Gold 2,499.50 -0.30% BTC 58,572 -2.10% ETH 2,634 -1.20%
S&P -0.02% Nasdaq -0.06% EuroStoxx +0.06% FTSE -0.18% Dax -0.08% SMI
Macro :
- Fed's Goolsbee (non-voter for 2024; voter for 2025): I don't think that cutting rates is a certainty - CBC interview (update)
- Stoxx 600 Turnover Declines 32.3%, Dragged by Banks
- Hedge Funds Buy Stocks as Growth Concerns Ease: Goldman Sachs
- UK Stocks Emerge as Safe Haven in Turbulent Month: Macro View
- Germany halts new military aid to Ukraine
- Brevan Howard Rehires Michael Lublinsky to Run US Macro Trading
- Brevan Howard Rehires Michael Lublinsky to Run US Macro Trading
- Riksbank Decision, Jackson Hole, BOJ’s Ueda: Events to Watch
- Ukraine’s Offensive Derails Secret Efforts for Partial Cease-fire With Russia, Officials Say
Keep an eye on :
Keep an eye on :
- ACLN SW : Accelleron to Acquire True North Marine
- ACS SM : ACS Consortium Wins $10.8b Managed Lanes Project in US: Filing
- ACS SM : ACS Consortium Wins $10.8b Managed Lanes Project in US: Filing
- AAPL US : Apple Is Playing the Long Game by Dropping Qualcomm: Power On
- AAPL US : Foxconn Tech to Work With Apple on Tabletop Robot Production:EDN
- BHP AU : BHP Settles Union Spat That Threatened Wage Deal at Copper Mine
- BNP FP : BNP Wealth Launches External Asset Manager Desk in Asia
- BA US : Boeing’s New CEO Wants to ‘Reset’ Relations With Biggest Union
- BRNK GY : Further debt repayment following good business performance in the year to date
- BSGR NA : B&S Group 1H Organic Revenue +4.2%
- ATD CN : Seven & I Got Takeover Offer From Couche-Tard, Nikkei Says (1)
- CVC NA : CVC Preparing Bid for Grant Thornton UK Stake, Sky News Reports
- ENEL IM : Chile Takes Further Step on Enel’s Concession Expiration Process
- ENGI FP : Engie and Canadian fund's investment plans in Brazil
- ERICB SS : Ericsson Sells Iconectiv to Koch Equity, Sees ~$1b Cash Gain
- FCX US : Indonesia said to be still in talks with Co on mining permit extension - press
- GURN SW : Gurit Holding: Half-year Report 2024
- IBE SM : AMLO Gets $852 Million Pension-Fund Backing for Iberdrola Deal
- METN SW : Metall Zug 1H Net Income CHF56.6M Vs. CHF12.6M Y/y
- PLUS LN : Plus500 1H Revenue $398.2M
- QCOM US : Apple Is Playing the Long Game by Dropping Qualcomm: Power On
- TGS NO : TGS Starts PAMA 3D Phase 1 Survey in Brazil Equatorial Margin
- UBI FP : Ubisoft Entertainment Cuts 45 People From Its US Staff
- VAR1 GY : Varta Reaches Deal With Lenders to Slash €285 Million Debt
- WBD IM : Red Sea International Signs 658M Riyal Contract With Webuild