Investing
Asian stocks surge as Fed rate hike bets recede; China data on tap
© Reuters
Investing.com– Most Asian stocks rose sharply on Monday as weaker-than-expected U.S. payrolls data furthered expectations that the Federal Reserve was done with its rate hike cycle, while focus also turned to upcoming economic readings from China.
Regional stocks have been on a tear since Thursday, after the Fed provided somewhat less hawkish signals than markets had feared, bumping up expectations of an end to any more hikes.
But weaker-than-expected data on Friday was the biggest proponent of this notion, given that it signaled cooling in the U.S. jobs market, which has been a major pain point for the Fed.
Wall Street indexes surged after Friday’s reading, providing a positive lead-in to Asian shares on Monday. Traders were pricing in a , and that the central bank will begin trimming rates by mid-2024.
Technology-heavy indexes were the best performers for the day, tracking a sustained decline in the dollar and U.S. Treasuries. South Korea’s rallied 2.7% to an over two-week high.
Japan’s jumped 2.2%, also taking support from data that showed the country’s grew more than expected in October. The Nikkei was at an over one-month high, and was set for a fourth straight session of gains after the Bank of Japan also struck a dovish tone last week.
Key Japanese corporate earnings, from SoftBank Group Corp. (TYO:) and Sony Corp (TYO:), are also on tap this week.
Australia’s rose 0.3%, crossing the 7,000 level for the first time in over two weeks.
Heavyweight bank stocks were among the top boosts to the ASX, with Westpac Banking Corp (ASX:) up 3.3% after clocking a 26% jump in its annual profit and announcing a $975 million share buyback.
But broader gains in Australian stocks were somewhat limited in anticipation of a on Tuesday. The central bank is widely expected to hike rates by 25 basis points, following a resurgence in inflation over the past quarter.
Futures for India’s index pointed to a positive open, after strength in tech stocks drove the index to a two-week high on Friday.
Chinese stocks rise before trade, inflation data
China’s rose 0.7%, while the index added 0.5%. Hong Kong’s index jumped 1.5%, buoyed chiefly by heavyweight tech stocks.
Focus this week is on key and readings from Asia’s largest economy, which are expected to offer more insight into a sluggish economic recovery.
The data comes after a string of weak business activity readings from China for October, which severely dented sentiment towards local markets.
But the economic weakness is also expected to attract more stimulus measures from Beijing, with the government recently announcing a 1 trillion yuan ($140 billion) bond issuance in the fourth quarter.
Read the full article here
-
Passive Income7 days ago
Are You Running Your Business, or Is Your Business Running You?
-
Side Hustles7 days ago
How Your Body Language Can Help Win a Disagreement
-
Side Hustles6 days ago
How to Be Unapologetically You and Why It Matters
-
Side Hustles7 days ago
OpenAI Raises Record $6.6 Billion, Adds 50 Million New Users
-
Side Hustles6 days ago
With AI Magicx, It’s Like Getting an Entire Creative Team in One Money-Saving AI Tool
-
Investing7 days ago
7 Marketing Strategies to Help Your Startup Grow and Scale
-
Investing5 days ago
Nvidia CEO Jensen Huang: Demand For Blackwell AI Is Insane
-
Side Hustles5 days ago
Mark Zuckerberg Is Now Second Richest Person in the World