China shares rise after data, gold hits record high: Market wrap-up

(Bloomberg) — China’s stock market posted its biggest gain in a month on fresh signs of economic recovery, becoming a bright spot in Asia. Gold prices hit new highs.

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Benchmarks in mainland China and South Korea rose, while Japanese stocks fell after a report showed confidence among the country’s big manufacturers edged weaker for the first time in four quarters. U.S. futures were slightly higher in Asia, with markets in Australia and Hong Kong closed. holiday.

China’s CSI 300 index rose 1.8%, its biggest gain since February 29, as a rebound in manufacturing activity boosted hopes that China’s economic recovery may start to strengthen.

“Optimism about China is real,” said Vishnu Varathan, chief economist for Asia ex-Japan at Mizuho Bank in Singapore. He said that given the “rest of Asia’s Corresponding optimism coincides with an upturn in global manufacturing,” which is likely to gain traction.

Global stocks have risen more than 18% in the past two quarters, driven by interest rate cuts and bets on artificial intelligence stocks. As the market enters a new era, these themes will remain a focus for investors.

U.S. Treasury yields and the Bloomberg Dollar Index fell slightly after Federal Reserve Chairman Jerome Powell said on Friday the central bank’s preferred inflation gauge was “largely consistent with our expectations.” Powell added that it would not be appropriate to lower interest rates until officials are confident that inflation is under control. Investors are betting the U.S. central bank will cut interest rates for the first time in June.

The core personal consumption expenditures price index, which excludes volatile food and energy costs, rose 0.3% in February, the largest consecutive gain in a year, after climbing the previous month. The gauge rose 2.8% earlier from the previous year and remains above the Fed’s 2% target.

“The Fed is highly dependent on data right now,” said Matthew Luzetti, chief U.S. economist at Deutsche Bank. “Until we get confirmation or a different view on the data outcome, it’s difficult to accurately gauge where we end up from a Fed policy perspective.”

In Asia, Japanese auto stocks were led lower by Toyota Motor Corp on weak industry sentiment data and the prospect of profits on the first day of the new fiscal year.

Taro Kimura of Bloomberg Economics wrote in a report on the Bank of Japan’s Tankan survey that Daihatsu Motor Co.’s temporary suspension of production has led to a sharp decline in automobile production, dragging down related industries. The confidence index among major automakers led the decline, falling 15 points.

In commodities, iron ore fell to its lowest level in 10 months as China’s years-long housing crisis continued to weigh on prices. Gold extended its gains on the impending Federal Reserve rate cut and rising geopolitical tensions.

Elsewhere, Bitcoin fell after trading above $71,000. The largest digital currency has gained nearly 70% this year on continued demand for U.S. exchange-traded funds that hold the token.

Main events this week:

  • Pakistan Trade, CPI, Monday

  • US Construction Spending, ISM Manufacturing, Monday

  • Bank of Canada releases business outlook and consumer expectations surveys on Monday

  • Eurozone S&P Global Manufacturing PMI on Tuesday

  • France S&P Global Manufacturing PMI, Tuesday

  • Germany S&P Global/BME Manufacturing PMI, CPI, Tuesday

  • India HSBC/S&P Global Manufacturing PMI on Tuesday

  • Mexico International Reserves, Tuesday

  • Korea Consumer Price Index, Tuesday

  • Spanish unemployment rate, Tuesday

  • UK S&P Global/CIPS Manufacturing PMI, Tuesday

  • U.S. factory orders, light vehicle sales, JOLTS job openings Tuesday

  • Brazilian Industrial Production, Wednesday

  • Eurozone consumer price index, unemployment rate on Wednesday

  • Hong Kong retail sales on Wednesday

  • US ISM service, Wednesday

  • Eurozone S&P Global Services PMI, PPI, Thursday

  • India services PMI on Thursday

  • U.S. jobless claims, trade, Thursday

  • Eurozone retail sales on Friday

  • French industrial production, Friday

  • German factory orders, Friday

  • Hong Kong PMI, Friday

  • India interest rate decision, Friday

  • Japan household spending on Friday

  • Philippine Consumer Price Index Friday

  • Russia’s gross domestic product on Friday

  • Singapore retail sales on Friday

  • South Korea’s current account balance on Friday

  • Friday’s U.S. unemployment rate, non-farm payrolls

Some major trends in the market:


  • S&P 500 futures were up 0.4% as of 1:20 p.m. Tokyo time

  • Nasdaq 100 futures rose 0.6%

  • Japan’s Topix fell 1.4%

  • Shanghai Composite Index rose 1%


  • Bloomberg U.S. Dollar Spot Index little changed

  • EUR/USD was little changed at $1.0786

  • The Japanese yen exchange rate has not changed much, with an exchange rate of 151.38 yen.

  • The offshore yuan exchange rate was little changed at 7.2501 USD to USD 7.2501

  • AUD/USD was little changed at $0.6523


  • Bitcoin falls 0.4% to $70,583.6

  • Ethereum falls 0.7% to $3,608.8



  • West Texas Intermediate crude rose 0.4% to $83.47 a barrel

  • Spot gold rose 1.4% to $2,260.75 an ounce

This story was produced with the assistance of Bloomberg Automation.

——With assistance from John Cheng and Aya Wagatsuma.

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