Equities in Asia rose Monday following a rally on Wall Street as investors embraced fresh signs that inflation is easing further. Chinese stock gauges led gains on expectations of more government stimulus. Shares in Japan and Korea also rose, helping to push a regional index toward the highest closing level of the year. Gains for Chinese equities pushed the MSCI Emerging Markets Index as much as 1% higher, headed to levels not seen since June last year. US equity futures fell in Asia amid a rally Friday that pushed the Nasdaq 100 nearly 2% higher. The demand for risk assets comes after further easing in key US inflation gauges, signaling fresh optimism that a soft landing for the world’s biggest economy is within reach. Federal Reserve Bank of Minneapolis President Neel Kashkari described the inflation outlook as “quite positive,” despite the likelihood of job losses and slower growth. The Bank of Japan announced unscheduled bond-purchase operations to buy debt, seeking to contain a selloff after it said Friday it will allow yields to rise above a 0.5% cap. The yen swung to a loss against the dollar.
Friday’s move by the BOJ is “possibly a very small step towards the end of YCC,” Joey Chew, head of Asia FX research for HSBC said on Bloomberg Television. “They could very well give up YCC but I think that could be something more for next year.” July manufacturing PMI data for China remained in contraction but beat estimates. More government efforts to shore up the economy emerged on Friday, including a plan to boost consumer industries and steps to grow an exchange dedicated to helping small firms get access to funds. Chinese stocks rose from Monday’s open, extending last week’s gains. The CSI 300 Index climbed as much as 1.8%, taking its monthly gains to 5.8%, the most since January. The Hang Seng China Enterprises Index, which tracks mainland stocks listed in Hong Kong, rose over 3%. Currency and bond markets face the risk of continued volatility as investors weigh whether rate hikes from the Federal Reserve and European Central Bank last week mark the end of their tightening cycles. On Friday, Meta Platforms Inc. and Tesla Inc. each climbed more than 4%, while Intel Corp. rallied about 6.5% on a bullish sales forecast. The Golden Dragon Index of US-traded Chinese stocks gained 7%. Elsewhere in markets, oil was slightly lower Monday but headed for a monthly gain, supported by signs the market is tightening amid estimates that crude demand is running at a record clip just as OPEC+ cuts back supplies.
Nikkei +0.92% Hang Seng +0.89% CSI +0.38% Shanghai +0.27% Shenzen +0.63%
Eur$ 1.1007 CNH 7.1508 CNY 7.1504 JPY 141.90 GBP 1.2847 CHF 0.8717 RUB 91.8665 TRY 26.9549 WTI$ 80.27 Gold 1954 -0.29% BTC 29,413 +0.49% ETH 1865 -0.01%
S&P -0.10% Nasdaq -0.14% EuroStoxx -0.40% FTSE -0.33% Dax -0.20% SMI -0.35%
Macro :
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