Asian stocks advanced, boost by optimism about the health of the US economy and speculation that stimulus will finally kick-start growth in China. Equity benchmarks gained across the region and US 10-year yields rose to hover just shy of the key 4% threshold, as investors trimmed bets on big Federal Reserve interest-rate cuts. Asian currencies weakened against the dollar, with Indonesia’s rupiah falling for a sixth day. Bank Indonesia said it stood ready to intervene to support the exchange rate. The yen gained against the dollar. Trading is being shaped by signs of resilience in the world’s largest economy after employers added the most US jobs in six months in September. Wagers on a “no landing” scenario — where US growth momentum remains intact and inflation reignites — stand to boost the greenback while triggering a drop in haven assets. A gauge of Chinese stocks in Hong Kong jumped to the highest level in more than two years before mainland markets reopen Tuesday after a week-long holiday. Chinese authorities have announced a number of stimulus measures over the past two weeks. Officials from the National Development and Reform Commission said on the weekend will hold a briefing on Tuesday on implementing incremental economic policies. Goldman Sachs Group Inc. upgraded Chinese stocks to overweight, with strategists including Tim Moe citing a further 15%-to-20% upside potential even after the rally that started in late September. Still, there have been a number of false dawns already and firms such as Invesco Ltd., JPMorgan Asset Management, HSBC Global Private Banking and Wealth, and Nomura Holdings Inc. are among those viewing the rebound with skepticism. Beijing will need to use its fiscal firepower to arrest the housing-market slump and also stimulate private consumption, which “depends on business confidence and animal spirits in the private sector,” said Qian Wang, chief economist for Asia Pacific at Vanguard Group Inc. On the US agenda this week are minutes from the Fed’s September policy meeting, as well as consumer price data. US inflation probably moderated at the end of the third quarter, which suggests policymakers will opt for a smaller interest-rate cut when they next meet on Nov. 6-7. Investors are “starting to reprice and rethink what’s the Fed’s doing,” said Jessica Zarzycki, a Nuveen Asset Management LLC bond fund manager. “They have enough room as inflation trends towards 2% to take out some of those emergency cuts that we saw.” Elsewhere in Asia, New Zealand bonds fell less than Treasuries amid speculation the central bank will cut rates by 50 basis points on Wednesday.
Bloomberg Economics expects the 25-basis-point cut by the Bank of Korea on Friday as inflation slows and tighter regulations start cooling the housing market. The Reserve Bank of India is expected to strike a dovish tone at its meeting on Oct. 9, and may even lower interest rates. Oil drifted lower as traders weighed Israel’s potential retaliation against Iran for a missile attack last week, with President Joe Biden discouraging a strike on Tehran’s crude fields.
Nikkei +2.23% Hang Seng +1.42% CSI / Shanghai / Shenzen /
Eur$ 1.0965 CNH 7.0887 CNY 7.0187 JPY 148.54 GBP 1.3113 CHF 0.8579 RUB 95.0745 TRY 34.2673 WTI$ 74.19 Gold 2,643 BTC 63,415 ETH 2,485
S&P -0.15% Nasdaq -0.17% EuroStoxx +0.20% FTSE +0.24% Dax +0.29% SMI +0.30%
Macro :
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Keep an eye on :
Keep an eye on :
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- ASCL LN : FTSE Russell: Chrysalis to Replace Ascential in FTSE 250 Index
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- BN FP : Danone plans India expansion to close in on rivals Unilever and Nestlé - FT
- DSV DC : DSV Capital Raise Said to Draw $30 Billion in Investor Orders, *LONG-ONLY INVESTORS SAID TO TAKE OVER 90% OF DSV SHARE OFFERING
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- ENI IM : Italy’s Eni Keen to Supply Japan LNG on Longer-Term Basis
- EL FP : *NIKON EXTENDS GAIN AFTER ESSILORLUXOTTICCA DISCLOSES STAKE
- XOM US : ExxonMobil Confirms Gravenchon Chemical Plant in France to Shut by End 2024 -- OPIS
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- IG IM : Italgas to Invest €15.6b in Plan After 2i Rete Gas Acquisition
- LSG NO : Leroy Prelim 3Q Harvest Misses Estimates
- MC FP : LVMH Is in the Luxury Driver's Seat With F1 Deal: Andrea Felsted
- MAR PL : Martifer Says Visabeira Industria Bought 24% Stake in Company
- PFE US : Activist Firm Starboard Value Takes $1 Billion Stake in Pfizer
- 7974 JP : Saudi Wealth Fund Considers Raising Nintendo Stake: Kyodo
- NEXI IM : UniCredit Reaches New Payments Deal With Nexi, Corriere Reports
- NOVOB DC : Novo Nordisk to Invest $158 Million in Brazilian Insulin Plant
- PST IM : Italy Hires Banks to Sell Stake in Poste Italiane
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- RESURS SS : CVC, Waldakt to Own Above 87% of Resurs Shares at Offer Close
- CFR SW : Richemont to Sell YNAP to Mytheresa; Sees Write-Down of ~€1.3b
- RIO LN : Rio Tinto in Talks to Buy Arcadium Lithium, Reuters Says
- RIO LN : Rio Tinto in Talks to Buy Arcadium Lithium, Reuters Says
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- SHEIN IPO : Shein's Founder Heads to U.S. to Meet Investors Ahead of London IPO -- WSJ
- SHEL LN : Shell Sees 4Q Integrated Gas Production 920,000 to 960,000 BOE/D
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- STLA US : Stellantis Sues UAW to Stop Strike Over Plant Investments (1)
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- TKA GY : Thyssenkrupp May Scrap Green Steel Project, Handelsblatt Says
- TTE FP : TotalEnergies Considers Expansion Into Copper Trading, FT Says
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