Synopsis
Investors in Asia are still digesting the impact of US President Donald Trump’s first few days in office, which have sent mixed signals to investors. Trump has reiterated a tariff threat against China but have largely spared the world’s second-largest economy from a feared escalation of the trade war.
Stocks in Asia got off to an uneven start in the wake of a US rally fueled by optimism over artificial intelligence spending.
Shares in Japan started the day higher but benchmarks in Australia and Korea slipped. The MSCI Asia Pacific index was flat. The tepid open for Asian markets came after the S&P 500 rose 0.6% on Wednesday, putting the index close to an all-time high.
Investors in Asia are still digesting the impact of US President Donald Trump’s first few days in office, which have sent mixed signals to investors. Trump has reiterated a tariff threat against China but have largely spared the world’s second-largest economy from a feared escalation of the trade war.
Investors are also weighing up further moves from China to boost its stock market. Beijing rolled out a basket of measures in an attempt to stabilize the market on Wednesday, including plans to boost the amount pension can invest in the nation’s listed companies.
The securities regulator is planning a separate briefing at 9:00 am on Thursday, raising the possibility that more measures will be announced today.
Futures on Hong Kong shares pointed to a higher open. Meanwhile, the yield on 10 year US Treasuries was little changed at 4.61%.
South Korea’s economy continued to sputter last quarter, with gross domestic product growth missing estimates. The nation plans to issue up to 20 trillion won ($13.9 billion) in special bonds from Thursday, dusting off a tool last used 21 years ago to help stabilize its currency.
The Bank of Japan is on track to raise interest rates to the highest level since 2008 on Friday, as the central bank makes steady progress toward normalization just as the Federal Reserve and the European Central Bank start to mull a pause in their easing cycles.
Poor Breadth
JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said in a Wednesday interview there are signs that the US stock market is overheated.
“Asset prices are kind of inflated,” Dimon told CNBC. “You need fairly good outcomes to justify those prices.”
Treasury rates jumped to multi-month highs last week as investors parsed economic data for clues on the Federal Reserve’s next interest-rate cut. The yield on the US 10-year has since pulled back after hitting a relative strength reading that usually signals a retreat. Pair that with positive technical signals and the Nasdaq 100 and S&P 500 Index both appear poised to hit fresh all-time highs in the first quarter, according to Ross.
In commodities, Brent oil fell for a fifth session as Trump’s threats of tariffs overshadowed the fallout from unprecedented US sanctions on Russia. Gold was little changed.
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
...moreless
(You can now subscribe to our ETMarkets WhatsApp channel)
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
...moreless