Stocks rose in Hong Kong and mainland China as investors cheered the news of two Chinese organisations Pressure mounting For financial institutions to ease conditions for real estate companies by encouraging negotiations to provide unpaid loans. Chinese developers have come forward.
Standard indices were also higher in Japan, South Korea and Australia. Semiconductor stocks rose in Asia after Taiwan Semiconductor Manufacturing Co. reported better than expected sales And their peers in the United States jumped on Monday.
US stock futures were little changed after the S&P 500 closed 0.2% higher on Monday, and the Nasdaq 100 rose.
The dollar weakened against all of its peers in the Group of Ten, extending losses incurred on Monday when Treasury yields fell. It acquired government bonds in Australia and New Zealand. The yen strengthened, while the external yuan did not change much.
Investors in Asia continue to expect more concrete steps from Beijing to boost the country’s tepid economic recovery. A faltering recovery in China is already having wide-ranging effects on markets, with the chairman of mining giant Rio Tinto conglomerate this week warning A side effect of the demand for industrial minerals.
China’s major state financial newspapers ran reports on Tuesday suggesting the possibility adoption More property support policies, along with measures to boost business confidence.
“The economic recovery has not come to the level we expected yet,” Cecilia Chan, chief investment officer for Asia Pacific at HSBC Global Asset Management, said on Bloomberg TV. However, we maintain an optimistic view towards China, we know that the government will give more stimulus measures.
Inflation challenge
The challenges in China come as many other countries, including the United States, are grappling with a different issue — rising inflation and rising interest rates. In Monday’s Wall Street session, traders filtered notes from a slew of Fed speakers while awaiting Wednesday’s CPI data that will help determine the path of a rate hike.
Federal Reserve officials Michael Barr, Mary Daly and Loretta Mester said the central bank will need to raise interest rates more this year to slow inflation to the 2% target. Morgan Stanley recommended buying five-year Treasury notes on the basis that inflation “is likely to decline sharply through the end of the year.”
“Record lower CPI, whether it’s a Wednesday in the US or whether it’s a Thursday PPI, a dip is likely to drive prices higher right now in the bond market where it’s safe to say maybe only one hike, not two Nancy Davis, Founder, Quadratic Capital Management and Chief Investment Officer, Bloomberg Television.
More pain could be on the way for the S&P 500 as earnings warnings and concerns about rising interest rates combine to threaten US stocks, according to the latest news. Markets Live Pulse reconnaissance. Earnings season kicks off in earnest on Friday, when JPMorgan Chase & Co. and Citigroup Inc. and Wells Fargo & Co. report.
Morgan Stanley’s Michael Wilson has become the latest of warning That earnings outlook will matter more than usual this time around given stock valuations, higher interest rates, and dwindling liquidity.
Elsewhere, oil rose while gold was little changed. DM
