April 8, 2022
Economists expect Beijing to support the economy and intervene in monetary easing policies to ensure that China achieve its 5.5% growth target this year.
Major Asian markets ended this week in a positive territory after a few tough days overshadowing the hawkish tone of the Fed’s rate hikes.
After a slow start, the area took control from Wall Street. Wall Street ended with a positive attitude, plunging in previous sessions as traders resented the outlook for high interest rates.
Chinese stocks closed at high prices, supported by expectations for further policy easing to support the economic slowdown hit by the worst Covid-19 outbreak in two years.
Economists hope that Beijing will take imminent monetary easing measures to support its economy and confirm that China is on track to reach its growth target of about 5.5% this year.
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OCBC Winghan Bank economist said, “China’s virus prevention and blockade measures continue to have a negative impact on the economy and the job market, and the market will cut interest rates as early as next week or take other mitigation measures. I’m looking forward to it. ” Note.
China’s CSI300 Index rose 0.5% to 4,230.77, but Hong Kong stocks closed on the forefront thanks to a backlash in the second half.
Hang Seng Index Added 0.29%, or 63.03 points, to 21,872.01. The Shanghai Composite Index rose 0.47% (15.16 points) to 3,251.85, while the Shenzhen Composite Index, the second largest exchange in China, fell 0.32% (6.76 points) to 2,080.77.
Hong Kong-listed tech giants have fallen 1.2% due to concerns over US-China relations, while index giants Alibaba Group, Meituan and Tencent Holdings have fallen 1.3% to 1.8%.
Real estate developers soared 2.7%, financial companies soared 1.3%, and construction engineering stocks soared 4.1%. Energy and resource shares increased by 1.3% and 1.6%, respectively.
Tokyo, Sydney, Soul Advance
Tokyo stocks also closed at high prices Benchmark Nikkei 225 Index The broader Topix index added 0.21% or 3.89 points to 1,896.79, while rising 0.36% or 97.23 points to 26,985.80.
Sydney, Seoul, Taipei, Manila, Jakarta and Bangkok all rose, while Singapore and Wellington fell.
European equities rebounded on Friday, but global equities were on track for their first weekly loss in four years as aggressive global rate hikes and geopolitical risk prospects upset investors. ..
The MSCI World Equity Index, which tracks equities in 50 countries, rose 0.2%, but fell 1.3% in the week, and is on track for its first weekly loss in four years.
The Pan-European STOXX 600 was 1.3% higher as the European market caught up with the modest bounce seen on Wall Street on Thursday.
Long-term government bonds are bearing the brunt of this week’s sales as traders see the Fed’s reduction in bond holdings as the biggest long-term hit in the US bond market.
Benchmark 10-year yields rose nearly 27bps this week to 2.6584%, but were stable in early European trading.
Strong dollar pile pressure on the yen
The US dollar is the main beneficiary of rising US dollar yields, with the dollar index rising for the seventh straight day and moving well towards the highest week in five weeks.
The stronger dollar is putting more pressure on the euro and the yen. The Japanese currency has been close to its lowest level in recent years, fighting 124.00, but the euro has fallen to the lowest level since March 7th at $ 1.0848.
Brent crude oil futures have risen after previously falling below $ 100 a barrel. US crude oil futures rose 0.8% to $ 96.76 a barrel.
Gold remained almost unchanged at $ 1,931 but was set to bring a 0.3% rise that week.
The major cryptocurrencies recorded a slight profit in Bitcoin trading at $ 43,813, but it was still on track for the second straight week of declines.
Key numbers around 0720 in Greenwich Mean Time
Tokyo – Nikkei 225> 26,985.80, up 0.4% (closing price)
Hang Seng Index> 21,872.01 up 0.3% (closing price)
Shanghai – Overall> 3,251.85, up 0.5% (closing price)
London – FTSE 100> 7,615.04 up 0.8%
Brent Crude> $ 101.48 / barrel up 0.9%
West Texas Intermediate> $ 96.89 / barrel for 0.9% UP
New York-Dow> 0.3% up 34,583.57 (Thursday closing price)
- Reuters for additional editing by Sean O’Meara