Asian shares traded unchanged as positive Chinese holiday data failed to support earlier optimism.
A gauge of Asia Pacific shares was mostly flat amid fluctuations in mainland Chinese stocks. The CSI 300 Index swung to losses — dragged down by declines in financials and health care — before returning to gains while Chinese shares in Hong Kong remained on the back foot. Buoyant travel and tourism data during the Lunar New Year break earlier suggested consumption revved up even as the broader economy struggles with deflation and a property crisis. A sub gauge measuring Chinese consumer stocks edged lower as traders looked for further policy support across the monetary and fiscal space, in addition to a cut in the reserve requirement ratio already undertaken. Chinese Premier Li Qiang on Sunday called for “pragmatic and forceful” action to boost the nation’s confidence in the economy. Concerns over China’s economy also led iron ore to tumble after five days of gains. Elsewhere, Japan’s Tokyo Stock Price Index rose, while the Nikkei-225 Stock Average slipped with shares in gaming company Nintendo Co. falling as much as 8.8% after it said it was pushing back the launch of its Switch successor to the beginning of next year. Still, the Nikkei hovered near its record close in 1989. Contracts for US equities climbed marginally higher after the S&P 500 dropped 0.5% on Friday. There was no cash trading of Treasuries on holiday in the US. They fell on Friday, with two-year yields up seven basis points to 4.65% after the producer price index rose on a sizable jump in costs of services. The yen strengthened to just below 150 per dollar with the greenback weakening against some of its Group-of-10 peers. The yuan was little changed after the People’s Bank of China on Sunday held the rate on its one-year policy loans at 2.5% while injecting a small amount of cash into the financial system. Oil slid from the highest level in three weeks as lingering concerns over the demand outlook offset ongoing Middle East tensions. Gold held a two-day gain. US and global stocks are yet to respond to the sell-off in Treasuries this month as a string of better-than-expected economic data drove traders to roll back their once-aggressive rate-cut bets so much that their expectations are now approaching the Fed’s own 75 basis-point forecast this year. Swaps are pricing about 90 basis points of rate cuts in 2024 — from more than 150 basis points at the start of February. Goldman Sachs Group Inc. expects the rally in the US to continue, with the S&P 500 reaching 5,200 by year-end as the resilient US economy drives company profit growth, strategists led by David Kostin wrote in a note to clients. The new target implies a 3.9% jump from Friday’s close. UBS Group AG’s wealth management unit also has a positive view on equities once the Federal Reserve starts cutting rates, particularly in small-cap stocks as consumer spending should stay healthy given the strength of the labor market. This week, traders will be keeping an eye on European inflation data as well as earnings from Nvidia Corp. and mining giants BHP Group Ltd and Rio Tinto Plc to help gauge the health of the global economy. Meantime, conflict in the Middle East is set to drag on as negotiations aimed at securing an Israel-Hamas cease-fire and the release of hostages haven’t progressed as hoped, Qatar’s foreign minister said.
Nikkei -0.04% Hang Seng -0.78%% CSI +1.01% Shanghai +1.36%% Shenzen +1.45%
Eur$ 1.0777 CNH 7.2089 CNY 7.1965 JPY 150.03 GBP 1.2614 CHF 0.8813 RUB 92.3828 TRY 30.8564 WTI$ 78.78 Gold 2,019 BTC 52,094 ETH 2,898
S&P +0,12% Nasdaq +0,22% EuroStoxx -0,23% FTSE -0,16% Dax -0,13% SMI -0.10%
Macro :
- Biden Administration Is Said to Slow Early Stage of Shift to Electric Cars
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