(Bloomberg) — Asian stocks pared gains after gains in Chinese stocks petered out amid disappointment over the outcome of the ministry’s joint press conference on the real estate market.
Most Read Articles on Bloomberg
With China’s CSI 300 Index erasing a 1.3% gain, the MSCI Asia-Pacific Index has all but given up its initial 0.7% gain. Chinese officials announced that the government will expand its program to support “whitelist” projects to 4 trillion yuan ($562 billion) from the approximately 2.23 trillion yuan already in place. The negative market reaction shows investors are setting an increasingly high bar for stimulus optimism.
“The challenge right now is that there isn’t a package big enough to get people excited,” Jun Bei Liu, a fund manager at Tribeca Investment Partners, told Bloomberg TV. “China’s economy is currently at rock bottom, but it needs to reignite confidence to reignite growth.”
Elsewhere, stock benchmarks fell in Japan and South Korea, and rose in Australia. US stock futures fell.
Chinese economic data due Friday is expected to show the world’s second-largest economy expanded 4.5% in the third quarter from a year ago, according to economists polled by Bloomberg. This is the weakest pace in six quarters.
Chinese President Xi Jinping has called on government officials to make every effort to help the country achieve its annual growth target of around 5%. But after policymakers offered no details of new stimulus in a series of press conferences this month, there are concerns that efforts alone will not be enough to revive growth. It’s increasing.
The outlook for Asian markets is worsening as China’s economic recovery wanes, combined with declines in technology companies. The region’s MSCI stock index is still on course for its best year since 2020, but traders expect the Federal Reserve to back off from rate cuts and earnings to slow in markets such as India and South Korea. As such, risk sentiment needs new catalysts to maintain momentum.
Taiwan Semiconductor Manufacturing’s results on Thursday could show signs of slowing demand after ASML Holding NV reported surprisingly weak order numbers earlier this week and cut its 2025 sales forecast It will receive careful attention.
The Australian dollar rose and government bonds fell after the country’s unemployment rate hit 4.1% in September, lower than the 4.2% predicted by a Bloomberg survey. The yield on the 10-year U.S. Treasury note rose 2 basis points to 4.03%, while the Bloomberg Dollar Index was little changed.
story continues
small cap
Wednesday’s rally in U.S. small-cap stocks shows investors are shifting away from the world’s biggest tech companies, which have soared on the back of an artificial intelligence boom, and into other stocks that benefit from a strong economy.
“Investors may be looking to move away from big tech companies that are widely owned and may see fewer clear catalysts going forward,” said TradeStation’s David Russell. . “With the election approaching and the economy rebalancing, the long-awaited rotation out of mega-cap stocks and into everything else may finally be on the horizon.”
Oil prices rose after four days of declines as traders weighed potential risks to Middle Eastern production against concerns about a global supply glut. Bitcoin fell after rising 1.7% on Wednesday, hitting its highest level since July.
Iron ore prices fell to a three-week low as investors questioned whether recent measures to shore up China’s real estate market will be enough to boost construction activity and steel demand. It shows that you are holding it.
This week’s main events:
ECB interest rate decision, Thursday
U.S. retail sales, unemployment claims, industrial production, Thursday
Fed’s Austan Goolsby speaks on Thursday
China GDP, Friday
U.S. housing starts Friday
Fed’s Christopher Waller and Neel Kashkari speak on Friday
The main movements in the market are:
stock
S&P 500 futures were down 0.2% as of 1:41 p.m. Tokyo time.
Nikkei 225 futures (OSE) fell 0.6%
Japan’s Topix remains almost unchanged.
Australia’s S&P/ASX 200 rose 0.6%
Hong Kong’s Hang Seng rose 0.9%
Shanghai Composite: Almost no change
Euro Stoxx50 futures fell 0.2%
currency
Bloomberg Dollar Spot Index little changed
The euro was almost unchanged at $1.0853.
The Japanese yen rose 0.1% to 149.42 yen to the dollar.
The offshore yuan was almost unchanged at 7.1365 yuan to the dollar.
cryptocurrency
Bitcoin fell 0.4% to $67,362.51.
Ether rose 0.4% to $2,627.19
bond
The 10-year Treasury yield rose 2 basis points to 4.03%.
Japan’s 10-year bond yield remains unchanged at 0.955%
The Australian 10-year bond yield rose 4 basis points to 4.24%.
merchandise
West Texas Intermediate crude rose 0.4% to $70.66 per barrel.
Spot gold rose 0.2% to $2,678.31 an ounce.
This article was produced in partnership with Bloomberg Automation.
–With assistance from Abhishek Vishnoi.
Most Read Articles on Bloomberg Businessweek
©2024 Bloomberg LP
