(Bloomberg) — Japanese stocks rose to a 34-year high on a tech-led U.S. rally and hopes for new monetary easing in China, leading Asia’s gains.
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The Nikkei Stock Average closed 1.2% higher, its highest level since March 1990, boosted by a resurgence in tech stocks. Chinese stocks were solid again after central bank officials indicated the Chinese government was prepared to further ease policy by reducing banks’ public reserves. Hong Kong and Australian stocks also rose.
South Korean stocks bucked the trend, weighed down by the drop in Samsung Electronics after the company posted six consecutive quarters of declining operating profit.
U.S. stock trades were slightly lower after the Nasdaq 100 outperformed on Monday. U.S. Treasury yields and the dollar were firm in Asian trading.
Apart from the latest tech stock rally, investors’ attention will also be on key inflation indicators in the US and China later this week. Tokyo’s consumer price inflation rate slowed for the second consecutive month in December, according to data released earlier, broadly consistent with the Bank of Japan’s view that import-led upward price pressures are subsiding. .
Jasmine Duan, senior investment strategist at RBC Wealth Management, said investors remain cautious about Chinese stocks due to concerns about China’s growth outlook and policy uncertainty, and Chinese stocks are ” “It may trade within a limited range in the short term.”
“I don’t think it’s going to be a game-changer at this point,” Duan said on Bloomberg TV, referring to further monetary easing through reductions in banks’ official reserves. “Investors are raising the bar for investing in China. Concerns about China’s long-term investment potential remain, especially for foreign investors.”
Monday’s rally in U.S. tech stocks came as Nvidia soared after announcing a new artificial intelligence product for personal computers. In contrast, Boeing Co.’s 737 Max 9 model was temporarily grounded by authorities and sank.
Elsewhere, Bitcoin soars above $47,000 on speculation that the US is poised to approve the launch of the country’s first exchange-traded fund (ETF) to invest directly in the world’s largest digital asset. After that, it became steady.
Inflation focus
Federal Reserve President Michelle Bowman said if interest rates were maintained at current levels, inflation could fall toward the central bank’s 2% target, adding to price pressures. This suggests that a weakening of the market could lead to a decline in borrowing costs.
“If inflation continues to approach the 2% target over time, we may begin the process of lowering interest rates to prevent policy from becoming too restrictive,” Bowman told the South Carolina Bankers Association. It will eventually become appropriate.” Columbia.
Returning to the corporate world, Zee Entertainment Enterprises fell more than 13% after Bloomberg News reported that Sony Group plans to call off its merger with its Indian unit.
Crude oil prices fell for the first time in about a month on signs of weakness in the physical market, including sharp price cuts by OPEC+ leader Saudi Arabia.
This week’s main events:
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China’s comprehensive lending, money supply, new yuan lending, Tuesday
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Eurozone unemployment rate, Tuesday
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German industrial production Tuesday
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US Trade, Tuesday
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US wholesale inventory Wednesday
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The World Economic Forum’s Global Risks Report will be released on Wednesday.
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New York Fed President John Williams speaks on Wednesday
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US CPI, new unemployment claims, Thursday
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China CPI, PPI, Trade, Friday
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UK industrial production, Friday
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US PPI, Friday
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Some of the largest U.S. banks will release fourth-quarter financial results on Friday.
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Minneapolis Fed President Neel Kashkari speaks on Friday
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ECB Chief Economist Philip Lane speaks on Friday
The main movements in the market are:
stock
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S&P 500 futures were little changed as of 6:43 a.m. London time.
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S&P/Australian Stock Exchange 200 futures little changed
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Hong Kong’s Hang Seng rose 0.2%
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The Shanghai Composite rose 0.3%.
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Euro Stoxx50 futures rose 0.3%
currency
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Bloomberg Dollar Spot Index little changed
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The euro was almost unchanged at $1.0953.
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The Japanese yen rose 0.2% to 143.91 yen to the dollar.
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The offshore yuan was almost unchanged at 7.1681 yuan to the dollar.
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The British pound was almost unchanged at $1.2737.
cryptocurrency
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Bitcoin fell 0.7% to $46,762.01.
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Ether fell 1.5% to $2,303.88.
bond
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The 10-year Treasury yield fell 1 basis point to 4.02%.
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Japan’s 10-year bond yield fell 2 basis points to 0.580%.
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The Australian 10-year bond yield fell 5 basis points to 4.10%.
merchandise
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West Texas Intermediate crude oil fell 0.2% to $70.63 a barrel.
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Spot gold rose 0.3% to $2,034.53 an ounce.
This article was produced in partnership with Bloomberg Automation.
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