Written by Uncle Banerjee
SINGAPORE (Reuters) – Asian shares rose from Chinese stocks on Thursday as the People’s Bank of China launched a 500 billion yuan loan facility to stimulate capital markets, but the dollar weakened ahead of U.S. inflation data later in the day. The price remained near the highest price in two months. .
The People’s Bank of China (PBOC) has begun accepting applications from financial institutions to participate in a newly created funding scheme announced on September 24 as part of a series of economic stimulus measures that boosted Chinese stocks. Then he announced.
China’s blue-chip CSI300 index rose 1.7% in early trading, a day after falling 7% as investors remained focused on the details of Chinese authorities’ stimulus plans to revive the stagnant economy.
Hong Kong's Hang Seng rose 2.5% after falling 1.3% on Wednesday and is up 24% this year.
This pushed MSCI’s broadest index of Asia-Pacific stocks outside Japan up 0.76% in early Asian time. Japan’s Nikkei average rose 0.5%.
Market eyes will be on Saturday’s Treasury press conference to announce details of the fiscal stimulus package.
“Further details on the size of spending will allow other policymakers to better begin to develop supportive policies relevant to their own roles,” ING economists said in a note Thursday. Ta.
“We continue to expect fiscal stimulus to be pushed forward in the coming weeks and months, although it may take longer than monetary policy.”
Chinese stocks rose to a two-year high on Tuesday after a long National Day holiday, but quickly lost momentum as a lack of details on China’s economic stimulus package hit market enthusiasm. Ta.
China’s benchmark index posted its biggest single-day decline on Wednesday since the start of the coronavirus pandemic.
“The ultimate goal of the Chinese market is not to cause a sudden rebound. It’s all about injecting confidence into the domestic economy and easing pressure on the real estate market. Their ultimate goal is to maintain domestic stability. ” said top executive Henry Wu. XTrackers Products USA.
US CPI is decided
The S&P 500 and Dow Jones Industrial Average closed at record highs last night ahead of the release of the US Federal Reserve’s minutes and September inflation data. (.N)
Minutes of the meeting revealed that a “substantial majority” of Fed officials at the September meeting supported starting an era of monetary easing with a deep half-point rate cut.
But there appeared to be broader agreement that the initial action did not commit the Fed to a specific pace of rate cuts in the future, according to minutes of the meeting.
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According to the CME FedWatch tool, the market has priced in an 82% chance of a 25 basis point rate cut next month, with investors dialing back expectations for an aggressive rate cut after last week’s strong U.S. jobs report. There is.
While Friday’s bank results kick off corporate earnings season, investors’ attention will be on Thursday’s Consumer Price Index (CPI) and other inflation data for insight into the Fed’s interest rate path.
According to a survey of economists conducted by Reuters, the core CPI inflation rate is expected to remain stable in September at 3.2% from a year ago.
“If core inflation beats expectations, yields will extend their recent gains and traders will dial back expectations for further Fed rate cuts in November,” said Tony Sycamore, market analyst at IG. said.
“This scenario casts doubt on the current Goldilocks narrative and is likely to spook stock markets.”
The dollar index, which gauges the currency against six major rivals, firmed after rising overnight to its highest since Aug. 16, as changes in U.S. interest rate expectations boosted the dollar. (FRX/)
The most recent value of the yen was $1 = $149.13, and the euro was $1.09445.
In commodity markets, oil prices rose as investors faced rising tensions in the Middle East and the impact on oil supplies, as well as a surge in demand from a major storm that hit Florida.
Brent crude oil futures rose 0.4% to $76.86 per barrel, and US West Texas Intermediate (WTI) futures rose 0.37% to $73.5 per barrel. (or)
(Reporting by Ankur Banerjee in Singapore; Editing by Muralikumar Anantharaman To read Reuters markets and financial news, click https://www.reuters.com/finance/markets. For more on the status of stock markets in Asia , click here: 0 #.index)
