Stocks in Asia were set to cap the highest close in almost four months, supported by a rally in Hong Kong shares amid hopes for stimulus in China and a positive sign in geopolitics. An Asian equity gauge gained as much as 0.4% as Hong Kong’s Hang Seng Index advanced around 1%, while the market’s technology measure jumped by about twice that.
Japanese stocks erased gains amid selling in the electric appliances sector, a tick up in the yen and positioning ahead of an expiry in equity futures contracts. India’s Nifty 50 Index inched closer to its highest level on record, but for the Adani Group, the impact of US short seller Hindenburg Research’s bombshell report remained on some of its stocks. With traders on the lookout for more government help to support China’s tepid economic recovery, optimism for stimulus is rising after authorities asked the nation’s biggest banks to lower their deposit rates. Bloomberg Economics expects the People’s Bank of China to lower its one-year benchmark interest rate “as soon as mid-June.” Meanwhile, US Secretary of State Antony Blinken plans to visit China in the coming weeks, providing scope for improvement in fraught relations between Washington and Beijing, which have weighed on stocks in Hong Kong and Shanghai. At current valuations, it’s probably good to go a bit overweight on Chinese stocks, according to Ayaz Ebrahim, emerging market and Asia Pacific equities portfolio manager at JPMorgan Asset Management. Morgan Stanley’s chief China equity strategist, Laura Wang, said she expected to see 9% earnings growth this year, supported by the government’s measures.
Stocks in mainland China, however, erased small gains after trade data showed exports fell more than expected in May. The offshore yuan was little changed. Europe equity futures held on to small gains and those of US stocks steadied Wednesday. A rotation into financial shares Tuesday suggested the breadth of the S&P 500’s recent rally might extend beyond technology soon. While a decline in Apple Inc. crimped gains, the benchmark gauge still rose 0.2%. The KBW Regional Bank index added more than 5% and the Russell 2000 climbed 2.7%. In currency markets, a gauge of greenback strength fell 0.1%. The yen appreciated and the Turkish lira dropped 3% to arecord low. Treasury yields were steady across tenors after a Treasury bill auction announcement weighed on short-dated US bonds on Tuesday. Europe equity futures held on to small gains and those of US stocks steadied Wednesday. A rotation into financial shares Tuesday suggested the breadth of the S&P 500’s recent rally might extend beyond technology soon. While a decline in Apple Inc. crimped gains, the benchmark gauge still rose 0.2%. The KBW Regional Bank index added more than 5% and the Russell 2000 climbed 2.7%. In currency markets, a gauge of greenback strength fell 0.1%. The yen appreciated and the Turkish lira dropped 3% to a record low. Treasury yields were steady across tenors after a Treasury bill auction announcement weighed on short-dated US bonds on Tuesday. Europe equity futures held on to small gains and those of US stocks steadied Wednesday. A rotation into financial shares Tuesday suggested the breadth of the S&P 500’s recent rally might extend beyond technology soon. While a decline in Apple Inc. crimped gains, the benchmark gauge still rose 0.2%. The KBW Regional Bank index added more than 5% and the Russell 2000 climbed 2.7%.
In currency markets, a gauge of greenback strength fell 0.1%. The yen appreciated and the Turkish lira dropped 3% to a record low. Treasury yields were steady across tenors after a Treasury bill auction announcement weighed on short-dated US bonds on Tuesday. The World Bank said in a report Tuesday the global economy is in a precarious situation as sharp interest-rate hikes hit activity and stir vulnerabilities in lower-income countries. Those fears have suppressed equities. US After Hours BASE -16.1%, CVGW -12.2%, CASY -5% lower on earnings; YEXT +12.5%, PLAY +4.6% higher on earnings.
Nikkei -1.21% Hang Seng +1.16% CSI -0.25% Shanghai +0.19% Shenzen -0.07%
Eur$ 1.0688 CNH 7.1283 CNY 7.1199 JPY 139.21 GBP 1.2420 CHF 0.9073 RUB 81.4351 TRY 22.5958 WTI$ 71.21 -0.72% Gold 1,964 +0.02% BTC 26,890 -0.21% ETH 1,879.17 +0.12%
S&P +0.03% Nasdaq -0.06% EuroStoxx +0.02% FTSE -0.02% Dax +0.06% SMI -0.19%
Macro :
- Goldman Sachs Strategists Say AI Could Drive S&P 500 Even Higher
- China Exports Drop More Than Expected, Fueling Growth Risks
- Golf Stocks Rally With PGA-LIV Deal Seen Boosting Sport’s Growth
- Golf Stocks Rally With PGA-LIV Deal Seen Boosting Sport’s Growth
- BofA Says Retail Exodus From US Stocks Signals Gains to Come
- Germany Is Running Out of Workers, Putting Growth in Jeopardy
- A Right-Wing Government Would Add Some Impetus to IBEX Earnings
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