Asian shares tracked Wall Street’s rally and gained the most in nearly two weeks as traders increased bets the Federal Reserve will lower interest rates next month following dovish comments by Chairman Jerome Powell. A gauge of Asian equities rose 1.1%, with an index of technology stocks in Hong Kong jumping by 3.1%. Shanghai shares gained 0.9%, hovering around their highest level in 10 years, with property companies among the winners as the Chinese city eased home buying curbs. Equity-index futures for US and Europe retreated as investors curbed some of Friday’s optimism ahead of this week’s risk events. Treasuries edged lower, paring some gains made after Powell’s speech, with yields on the two-year up one basis point to 3.71%. A gauge of the dollar strengthened 0.1% after posting its third weekly loss. Gold fell. Traders see an 84% chance of a Fed rate cut next month after Powell signaled at Jackson Hole, Wyoming, the central bank may ease before inflation fully returns to target amid a softening hiring environment. That optimism faces key tests this week, including a US inflation reading, Nvidia Corp.’s results and the peak of Asian earnings season. Sentiment had been weak heading into Friday, with the S&P 500 falling for five straight sessions. Its longest losing streak since January came as Wall Street pulled back on bets that the Fed was about to reduce borrowing costs. Powell’s comments halted those concerns, sending the equity benchmark soaring to its best day since May. However, Powell, in what was likely his final Jackson Hole speech at the helm of the Fed, detailed the cloudy signals coming from the economy. Thu Ha Chow, Robeco’s Head of Fixed Income Asia, shares her insights on the Fed’s political independence and Chairman Jerome Powell’s signaling of a potential interest rate cut at the next policy meeting. While the effect of tariffs on prices is now visible, there are still questions about whether that will reignite inflation in a more persistent way, he said. He called the labor market’s current status — with both falling demand for, and declining supply of workers — “curious.” Chinese stocks have been in focus with questions mounting over how much further the market can rally with concerns of trade tariffs and a deep-rooted property crisis weighing on the economy. While the market’s steady advance may suggest less risk of a sudden correction, some analysts are warning that a bubble is in the making. Then there’s Nvidia, which is set to report quarterly earnings on Wednesday after the market close. Traders are hoping it can soothe fears about AI spending and effectively confirm that the stock market’s latest rally isn’t just a technology bubble. Nvidia’s size — it has the biggest weighting in the S&P 500 at almost 8% — and its position at the center of AI development have made it a bellwether of the broader market. The tech giant’s chips are everywhere, with 40% of its revenue coming from tech giants including Meta Platforms Inc., Microsoft Corp., Alphabet Inc. and Amazon.com Inc.
Meanwhile, several Asian borrowers are opening talks with investors this week on dollar bond deals, aiming to lock in some of the tightest credit spreads seen in decades amid growing expectations for further US interest rate cuts.
Nikkei +0.40% Hang Seng +1.72% CSI +1.11% Shanghai +0.63% Shenzen +0.95%
Eur$ 1.1704 CNH 7.1587 CNY 7.1581 JPY 147.32 GBP 1.3510 CHF 0.8032 RUB 80.6072 TRY 40.9913 WTI$ 63.74 +0.13% Gold 3,365 -0.20% BTC 112,595 -0.16% ETH 4,710 -1.62%
S&P -0.04% Nasdaq -0.03% EuroStoxx -0.33% FTSE Closed Dax -0.34% SMI -0.18%
Macro :
- Russian oil deliveries to Hungary off again after third attack on Druzhba pipeline as Ukraine ups attacks on Russian oil assets
- German Finance Chief Pledges Reforms to Reverse Economic Slump
- German Finance Chief Pledges Reforms to Reverse Economic Slump
- Hedge fund redemption requests edge higher in August
- How US nuclear sanctions on China backfired, Washington’s strict blacklist rule amid national security concerns has forced Beijing to become self-sufficient with ‘incredible’ results - SCMP
- Foreign brands in China are losing market share to domestic rivals, year after year, Industry findings and trending online comments help explain how Chinese brands are steadily outpacing foreign firms, as their store closures make headlines - SCMP
- The Drunkest Man In Germany: Foreign Driver With Deadly Blood Alcohol Level - Zero Hedge
- Euro Stoxx 50 Hedging, Dividend Calls (BASF, Santander, E.ON Generali, ORK NO SW , GXI GY, NHY NO, VIE FP)
- Luxury-Goods Revival Delayed to 2026, Few 1H Winners, More Risk
- EM Assets Set to Pull Ahead of Developed Peers, Funds Say (1)
Keep an eye on :
- ARGX BB Argenx Says Adapt Seron Vyvgart Study Met Primary Endpoint
- AZN LN : Daiichi, Astra’s Datroway Approved in China for Breast Cancer
- CMCSA US : Trump Suggests Support for FCC Revoking ABC, NBC Licenses (1)
- DEBS LN : Reportedly Frasers group looking to oust Chair Tim Morris - UK press
- ELE SM : Masorange Readies Power Business Deal With Endesa: Expansion
- KO US : Coca-Cola Explores Sale of UK Coffee Chain Costa, Sky Reports
- KO US : Coca-Cola Explores Sale of UK Coffee Chain Costa, Sky Reports
- HSBA LN : HSBC’s Swiss Bank Said to Exit 1,000 Mideast Clients Amid Revamp
- 2498 TT : Google’s AI glasses rumoured to be made in Taiwan, possibly by HTC - SCMP
- INTC US : US Takes Nearly 10% Intel Stake, Clinching Unorthodox Deal
- JDEP NA : *KEURIG DR PEPPER TO BUY JDE PEET’S FOR €31.85/SHR IN CASH
- KER FP : Kering : la nomination de Luca de Meo au menu de l'AG du 9 septembre
- KDP US : Keurig Dr Pepper Said Near $18 Billion Deal for JDE Peet’s (1)
- MBG GY : Mercedes-Benz Files Recall of 3,749 Vehicles: NHTSA
- META US : Secret Fintech Payments Cloud $725 Million Facebook Class Action Settlement
- METN SW : Metall Zug 1H Net Sales CHF94.2M Vs. CHF181.2M Y/y, Metall Zug Swings to H1 Net Loss; Net Sales Down
- BMPS IM : Monte Paschi to Early Redeem €300m Tier 2 Notes on Sept. 10
- ORA FP : Masorange Readies Power Business Deal With Endesa: Expansion
- ORSTED DC : Orsted Subsidiary Stops Activities Following Orders From US BOEM & FT (Link)
- 1913 HK : -1% : Luxury-Goods Revival Delayed to 2026, Few 1H Winners, More Risk
- PRU LN : Prudential’s Review of $3 Billion Eastspring Is Said to Stall
- RIO LN : Rio Tinto Stops Work at Simandou Iron Ore Project After Fatality
- RKLB US : Rocket Lab Successfully Launches 70th Electron Mission
- SFOR LN : Martin Sorrell’s US suitor says no to second swoop
- SNAP US : Struggling Snap Considers Outside Funding for AR Glasses - The Information
- 9984 JP : How SoftBank’s Masayoshi Son became Donald Trump’s favoured foreign investor - FT
- Space X : SpaceX Delays Starship Launch to Fix Ground Systems Issue
- TGS NO : TGS Gets Indonesia Streamer Contract Covering About 10,000 Sq Km
- VLA FP : Valneva suspended from marketing chikungunya shot in U.S. over safety concerns
- VLA FP :
- VRNT US : Thoma Bravo Said to Near $2 Billion Deal for Verint Systems