Stocks in Asia rose after economic data supported the case for Federal Reserve interest-rate cuts, and the yen bounced off its lowest level against the dollar since 1986. The MSCI Asia-Pacific gauge hit its highest point in over two years, with technology shares contributing the most to the rally. Japan’s Topix hit a record intraday high and equities in South Korea, Australia and China also advanced. US futures contracts were little changed after the S&P 500 and Nasdaq 100 hit records in a shortened session ahead of a US holiday. The yen strengthened after once again touching its lowest level since 1986 against the greenback in the previous session. Speculation persists that the Bank of Japan will tighten policy only gradually. A gauge of dollar weakened for the third successive session. Global stocks are on course for their longest stretch of weekly gains since March on the back of a string of soft economic data in the US, which has brought the idea of September rate cuts back on table. On Wednesday, reports showed the American services sector contracted at the fastest pace in four years, while the labor market saw further signs of softening. Minutes from the Fed’s June policy meeting showed officials were awaiting evidence that inflation is cooling and were divided on how long to keep rates elevated. Swap traders projected almost two rate cuts in 2024, with the first in November — though bets on a September reduction increased. Treasury 10-year yields were steady after dropping seven basis points to 4.36% in the prior session, which weighed on an index of dollar strength. Elsewhere in Asia, Chinese electric-car brands held on to their share of the slumping European EV market in May. Automakers like BYD Co. made up 8.7% of total EV sales, roughly on par with a year ago, as Chinese firms pressure European counterparts with new, inexpensive models. Meanwhile, Britons prepared to head to the polls in a general election Thursday. The pound was little changed in early Asian trading. Investors will now keep an close eye on Friday’s US jobs report. Economists anticipate a 190,000 gain in June nonfarm payrolls — less than the previous month — with the unemployment rate holding at 4%. Chicago Fed President Austan Goolsbee said there’s still a lot of data the US central bank needs to see before gaining the confidence to cut interest rates. Separately, traders are watching for indications if President Joe Biden will drop out of the US presidential race. Wall Street has started shifting money to and from the dollar, Treasuries and other assets that would be impacted if his rival Donald Trump returns to office. In commodities, gold gained for a second day after breaking out of a days-long tight trading range. US After Hours Quiet session heading into the holiday; KKR +0.9% edging higher on M&A reports
Nikkei +0.90% Hang Seng +0.04% CSI -0.08% Shanghai -0.47% Shenzen -0.99%
Eur$ 1.0785 CNH 7.3015 CNY 7.2716 JPY 161.46 GBP 1.2746 CHF 0.9003 RUB 88.5000 TRY 32.5458 WTI$ 83.30 -0.69% Gold 2,357 +0.05% BTC 58,840 -1.17% ETH 3,221 -1.05%
S&P +0.05% Nasdaq -0.03% EuroStoxx +0.14% FTSE +0.13% Dax +0.17% SMI -0.14%
Macro :
- Biden Struggling to Contain Pressure to Drop His Reelection Bid
- Starmer Vows ‘New Chapter’ as Britons Cast Votes on Election Day
- France’s Last Bond Sale Before Vote Set to Gauge Investor Angst
- Chinese EV Sales Hold Up in Europe as Trade Tensions Escalate
- Biden Interview on ABC to Air at Friday 8pm ET
- House Democrats Consider Demanding Biden Withdraw From Race
- House Democrats Consider Demanding Biden Withdraw From Race
- Xi Defends Role on Ukraine, Vows to Deepen Russia Coordination
- French Bonds That Offer 5% to Lure Bargain-Hunters: Macro View
Keep an eye on :
- ADEN SW : Swiss Staffing Firm Adecco Said to Consider Sale of Akkodis Unit
- AKBM NO : Aker BioMarine to Sell Ownership Position in Feed Ingredients
- ARAMCO AB : Aramco, Adnoc Are Said to Consider Bids for Gas Producer Santos
- PRO IM : Banca Profilo Holder Confirms in Exclusive Talks for Stake Sale
- IAG LN : Airlines will have to raise prices to fund net zero goals, IAG boss says
- BO DC : B&O Sees 2025 Adjusted Ebit Margin -2% to 1%
- CAP FP : Capgemini Government Solutions Announces Management Change
- CON GY : Continental’s Struggling Auto Unit Banks on China Growth in 2H
- EDV LN : Endeavour Mining to Replace Smurfit Kappa in FTSE 100 Index
- ERICB SS : Ericsson Reports SEK11.4b Charge Relating to Vonage Impairment
- INST US : Francisco, KKR Are Said to Consider Takeover of Instructure
- KRN GY : Krones Targets Revenue Increase to €7B by 2028
- KRN GY : Krones Targets Revenue Increase to €7B by 2028
- LAND SW : Landis+Gyr: Spectrum Entrepreneurial Bought 5% Stake From KIRKBI
- LDO IM : Leonardo, Rheinmetall Team Up for Italian Tanks Order
- M US : Macy’s Investor Group Raises Buyout Offer Again, WSJ Reports
- OP SS : Oscar Properties’ Restructuring Appeal Denied by Court
- PLUX FP : Pluxee Raises '24 Org. Rev. Target to ~18%, Saw +15% to +17%
- RDC GY : Redcare Pharmacy NV Prelim 2Q Revenue EU560M
- ROG SW : Roche Phase II/III Skyscraper-06 Study Missed Primary Endpoints
- 005930 KS : Samsung Likely to Post Fastest Sales Growth Since 2022: Preview
- SAN FP : Bain, Cinven Said to Weigh Joint Bid for $20 Billion Sanofi Unit
- SAN SM : Santander Is Said to Sell €270 Million in Mortgages to Hoist
- SKG LN : Endeavour Mining to Replace Smurfit Kappa in FTSE 100 Indexendeavour
- 9984 JP : SoftBank Has No Plans For Immediate Share Buyback: FT
- LOCAL FP : Solocal to Start ~€18M Rights Issue as Part of Restructuring
- SPWR US : SunPower Says SEC Issued Subpoena on Accounting Practices
- SWECB SS : Sweco to Partner Helen for Green Hydrogen Plant in Helsinki
- WG/ LN : Sidara’s Deal Deadline for Wood Group Extended to July 31