(Bloomberg) — Asian stocks were mixed on the final trading day before the Lunar New Year holiday, while mainland Chinese stocks were volatile. National debt has stabilized.
Most Read Articles on Bloomberg
China’s CSI300 index fluctuated between gains and losses after the midday break, while the Shanghai Stock Exchange Composite Index rose. The CSI index rose in early trading after the country replaced the head of its securities regulator on Wednesday, which could be a harbinger of stronger measures to support the stock market. It was a surprising move.
The momentum slowed slightly after data showed Chinese consumer prices fell at the fastest pace since the global financial crisis last month, as the country struggles to overcome persistent deflationary pressures. Hong Kong stocks fell.
Chinese stocks have cheap valuations, but “we really need inflation statistics to improve significantly and return to positive territory to lay the foundations for a multi-year uptrend,” said Chief Investment Officer of Wealth Management at Standard Chartered. said Steve Bryce. on Bloomberg TV. “That will probably require significant policy stimulus.”
Stocks in the region fell into the red as Chinese stocks lost momentum. Benchmarks in Australia and South Korea bucked this trend, but benchmarks rose in Japan as the yen weakened following comments from Bank of Japan Deputy Governor Shinichi Uchida. He said it was unlikely that the central bank would continue to raise interest rates rapidly even after negative interest rates ended.
U.S. futures were little changed after the S&P 500 closed at an all-time high. The index moved within striking distance of 5,000 index points as traders expected a strong economy to continue to boost corporate profits. Contracts in European stocks suggested a move closer.
In Asia, government bond prices were little changed as 10-year bonds edged lower from the previous session. A record $42 billion in bids on Wednesday sold at lower-than-expected yields, a sign of strong demand and the market likely to struggle to digest the large supply. Concerns about whether or not this is the case have allayed.
“The market continues to climb a wall of uncertainty, including changing Fed expectations, geopolitical tensions, and overbought market conditions,” said Mark Hackett of Nationwide Funds Group. “Although we are entering a downturn, there is strong momentum in the market.”
India’s central bank on Thursday stuck to its hawkish policy stance and signaled it is in no hurry to cut interest rates until later in the year, even as inflation remains well above target. Markets in Taiwan, Indonesia, Vietnam and Pakistan are closed.
SoftBank Group announced its first profit after four consecutive quarters of losses, and its stock soared 11%. Arm Holdings, in which SoftBank owns shares, rose as much as 38% in after-hours trading in New York on strong results.
Shares of Alibaba Group Holding fell about 6.8% in Hong Kong even as the company announced a $25 billion share buyback.
Renewed concerns about US regional banks appear to have eased, supporting a tentative risk-on tone in New York markets. New York Community Bancorp stock reversed a 14% intraday decline to end higher.
On Wednesday, more Fed officials indicated they didn’t think a rate cut was urgently needed, and in recent days have warned that a rate cut likely won’t happen until May at the earliest. He was added to a list of policymakers, including Chairman Jerome Powell.
Elsewhere, oil prices continued their third day of gains, supported by broad-based gains in financial markets and lingering Middle East risks. Gold remained stable for a second day.
This week’s main events:
-
U.S. wholesale inventories, new unemployment claims, Thursday
-
Treasury Secretary Janet Yellen speaks Thursday at the Senate Banking Committee’s hearing on the Financial Stability Oversight Council Annual Report.
-
Pharmaceutical CEOs speak Thursday before the Senate Committee on Prescription Drug Pricing
-
ECB chief economist Philip Lane speaks on Thursday
-
ECB releases economic news on Thursday
-
US CPI revisions Friday
-
German Consumer Price Index, Friday
-
President Joe Biden hosts German Chancellor Olaf Scholz at the White House on Friday.
The main movements in the market are:
stock
-
As of 6:30 a.m. London time, S&P 500 futures were little changed. S&P500 rose 0.8%
-
Nasdaq 100 futures were little changed.Nasdaq 100 rises 1%
-
Euro Stoxx50 futures rose 0.2%
-
Japan’s TOPIX index rose 0.5%
-
Hong Kong’s Hang Seng Index fell 1.5%.
-
China’s Shanghai Composite Index rose 0.8%.
-
Australia’s S&P/ASX 200 index rises 0.3%
currency
-
Bloomberg Dollar Spot Index little changed
-
Neuron is almost unchanged at $1.0782
-
The Japanese yen fell 0.3% to 148.69 yen to the dollar.
-
The offshore yuan was almost unchanged at 7.2093 yuan to the dollar.
-
The Australian dollar was almost unchanged at US$0.6518.
-
The British pound was almost unchanged at $1.2629.
cryptocurrency
-
Bitcoin rose 0.8% to $44,554.01
-
Ether fell 0.3% to $2,422.2.
bond
merchandise
-
West Texas Intermediate crude rose 0.4% to $74.17 per barrel.
-
Spot gold fell 0.1% to $2,033.16 an ounce.
This article was produced in partnership with Bloomberg Automation.
–With assistance from Richard Henderson.
Most Read Articles on Bloomberg Businessweek
©2024 Bloomberg LP