(Bloomberg) — Stocks in Asia rose after hitting a record high on Wall Street, helped by technology stocks. Oil fell as concerns about an Israeli attack on Iranian energy facilities eased.
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MSCI’s Asia-Pacific index rose as much as 0.7% on the back of gains in the chip sector. Japan’s Nikkei Stock Average rose again, reaching its highest level recorded in July. Benchmarks in Australia and Taiwan also made progress.
Oil fell after the Washington Post reported that Israel is not planning attacks on Iran’s oil or nuclear facilities.
Stock prices in China and Hong Kong fell as investors focused on further stimulus from the Chinese government. The country’s stock index rose on Monday, even though a highly anticipated weekend briefing from the Treasury Department lacked any concrete new incentives to boost consumption in the world’s biggest oil importer. .
“It’s very important to have the two stimulus packages, monetary stimulus and fiscal stimulus, together, and we’re delivering on both,” Christina Hooper, chief global market strategist at Invesco, said on Bloomberg TV. spoke. “I believe the fiscal stimulus will address key areas and will lead to improvements that will benefit the economy and markets in the medium to long term.”
Chinese media outlet Caixin reported that China could raise 6 trillion yuan ($846 billion) over three years in super-long-term special bonds as part of efforts to boost its sluggish economy.
The country has begun enforcing a long-overlooked tax on foreign investment profits made by the ultra-wealthy, according to people familiar with the matter. The move highlighted the growing urgency within the government to expand revenue sources as land sales slump and growth slows.
Still, Monday’s report showed export growth in September unexpectedly rose just 2.4% year-on-year in dollar terms, the lowest level since May, a sign of economic weakness. is increasing further. Share prices of Chinese stocks listed in the US fell more than 2% overnight.
“To get the economy going again, we need to see fundamentals support policy tailwinds,” Standard Chartered Wealth Solutions Group CIO Steve Bryce said on Bloomberg TV.
Meanwhile, reflecting hot demand for Japan’s biggest listing in six years, Tokyo Subway’s initial public offering price was set at the highest market price, raising 348.6 billion yen ($2.3 billion), according to people familiar with the matter. The matter was said.
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Markets are also looking forward to Hong Kong leader John Lee’s annual speech on Wednesday. He is expected to make economic support a priority and present an agenda that includes possible lower liquor taxes and possible measures to strengthen the city’s fiscal position. center.
Earnings releases are expected to boost U.S. sentiment this week, with the S&P 500 rising nearly 1% on Monday, hitting a new record for the 46th time this year. This suggests investors are not daunted by downward revisions to third-quarter earnings forecasts, but are instead betting on a positive surprise. Japanese stocks also rose on Tuesday, following the rise in US stocks.
Naoki Fujiwara, senior fund manager at Shinkin Asset Management, points out, “Considering the situation in the United States and China, there is no selling point in the macro environment, and Japanese stocks are cheap.”
The Nasdaq 100 rose 0.8%. Nvidia Inc. led the rally in mega-cap stocks, Apple Inc. rose after analysts’ bullish calls and Tesla Inc. rebounded from last week’s sharp decline. Goldman Sachs Group and Citigroup outperformed.
U.S. Treasury yields were slightly lower on Tuesday as spot trading was closed on Monday for a national holiday. The yen strengthened against the dollar, but remained far below the key psychological level of 150 yen.
In the United States, the earnings season unofficially opened on Friday, led by financial leaders JPMorgan Chase & Co. and Wells Fargo & Co. In addition to other major banks reporting this week, traders will be paying close attention to the results of major companies like Netflix Inc. and JB Hunt Transport Services Inc.
According to Bank of America strategists Oson Kwon and Savita Subramanian, the initial third-quarter earnings report released last week showed that Corporate America was on the brink of the early stages of the Federal Reserve’s easing cycle. The results show that they are benefiting from lower interest rates.
In other news, Biden administration officials are discussing country-by-country restrictions on sales of advanced AI chips from Nvidia and other U.S. companies, which would limit some countries’ artificial intelligence capabilities. Officials said it will be done.
Bitcoin firmed after rising 5% on Monday on growing signs that the U.S. regulatory outlook for the crypto sector will improve after the next presidential election.
This week’s main events:
Eurozone industrial production, Tuesday
Goldman Sachs, Bank of America and Citigroup earnings Tuesday
Fed’s Mary Daly and Adrianna Kugler speak on Tuesday
Morgan Stanley earnings results Wednesday
ECB interest rate decision, Thursday
U.S. retail sales, unemployment claims, industrial production, Thursday
Fed’s Austan Goolsby speaks on Thursday
China GDP, Friday
Fed’s Christopher Waller and Neel Kashkari speak on Friday
The main movements in the market are:
stock
S&P 500 futures were little changed as of 12:07 p.m. Tokyo time.
Japan’s TOPIX rose 1.1%
Australia’s S&P/ASX 200 rose 0.8%
Hong Kong’s Hang Seng fell 1.4%.
The Shanghai Composite fell 0.6%.
Euro Stoxx50 futures rose 0.4%
currency
Bloomberg Dollar Spot Index little changed
The euro was almost unchanged at $1.0902.
The Japanese yen rose 0.1% to 149.59 yen to the dollar.
The offshore yuan fell 0.3% to 7.1158 yuan to the dollar.
cryptocurrency
Bitcoin fell 0.3% to $65,676.95.
Ether rose 0.1% to $2,624.91
bond
The 10-year Treasury yield fell 1 basis point to 4.09%.
Japan’s 10-year bond yield rose 1 basis point to 0.955%.
The Australian 10-year bond yield fell two basis points to 4.25%.
merchandise
This article was produced in partnership with Bloomberg Automation.
–With assistance from Sherry Ann and Jason Scott.
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