China Shares Gain in Catchup as Asia Equities Rise: Markets Wrap
(Bloomberg) -- Asian equity benchmarks gained as risk sentiment improved after softer-than-expected US payroll data revived bets the Federal Reserve will cut interest rates this year. China’s stock market climbed as it reopened after a holiday break.
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China’s CSI 300 Index climbed as much as 1.6% as Beijing’s supportive policy stance added impetus to its momentum. Hong Kong’s benchmark Hang Seng Index rose for a 10th straight session. Japanese markets are shut for a holiday.
Global stock markets have been given a fillip after data showing US employers scaled back hiring fueled investor expectations that a data-dependent Fed might start easing policy later this year.
China’s “market sentiment appears to be incrementally improving,” said Nicholas Yeo, head of China equities at abrdn Plc, referring to strong travel numbers, better-than-expected corporate results and stock market reforms. “More material support via larger-than-expected fiscal spending and additional help for the property market would go a long way to materially improve sentiment in China.”
Oil rose in early trading after Israel closed the Kerem Shalom humanitarian crossing into Gaza on Sunday following a rocket barrage fired by Hamas, in an incident that may derail weeks-long delicate hostage and cease-fire negotiations. Saudi Arabia lifted the price it sells crude to Asia as it attempts to tighten the oil market.
Traders will also be mindful of a swath of central bank meetings this week, led by a likely hawkish Reserve Bank of Australia on Tuesday following stronger-than-expected inflation data last month. Chinese activity data as well as inflation readings in key emerging markets are also due.
Some key events this week:
China Caixin services PMI, Monday
Eurozone S&P Global Services PMI, PPI, Monday
Australia rate decision, Tuesday
Eurozone retail sales, Tuesday
UBS earnings, Walt Disney, BP earnings, Tuesday
Minneapolis Fed President Neel Kashkari speaks, Tuesday
Brazil rate decision, Wednesday
Sweden rate decision, Wednesday
Toyota earnings, Wednesday
China trade, Thursday
Malaysia rate decision, Thursday
Mexico CPI, rate decision, Thursday
UK BOE rate decision, Thursday
Canada unemployment, Friday
UK industrial production, GDP, Friday
Chicago Fed President Austan Goolsbee speaks, Friday
Some of the main moves in markets:Stocks
S&P 500 futures were little changed as of 10:47 a.m. Tokyo time
Nikkei 225 futures (OSE) rose 1%
Australia’s S&P/ASX 200 rose 0.6%, more than any closing gain since April 29
Hong Kong’s Hang Seng fell 0.3%, more than any closing loss since April 19
The Shanghai Composite rose 0.9%, more than any closing gain since April 26
Euro Stoxx 50 futures rose 0.3%
Currencies
The Bloomberg Dollar Spot Index was little changed
The euro was little changed at $1.0766
The Japanese yen fell 0.3% to 153.55 per dollar
The offshore yuan slipped 0.3%, more than any closing loss since April 10
Cryptocurrencies
Bitcoin rose 0.6% to $64,146.03
Ether strengthened 0.2%,rising for the fifth straight day, the longest winning streak since April 8
Bonds
Australia’s 10-year yield declined one basis point to 4.41%
Commodities
West Texas Intermediate crude rose 0.3% to $78.31 a barrel, ending a five-day streak that saw a 6.8% decline
Spot gold rose 0.2% to $2,306.59 an ounce
This story was produced with the assistance of Bloomberg Automation.
--With assistance from Sangmi Cha.
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