China Shares Weigh on Asian Peers After Data Dump: Markets Wrap – Yahoo Finance
(Bloomberg) — Chinese stocks fell, weighing on broader Asian stocks, after weaker-than-expected retail sales data showed the world's second-largest economy is still struggling to recover. It became.
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MSCI's Asian benchmark erased earlier gains as China's CSI 300 index fell for a second straight day. Stock prices also fell in Hong Kong and Australia, but rose in Japan. U.S. futures edged higher after the S&P 500 ended essentially unchanged on Friday. Bitcoin has hit a new all-time high.
Although China's industrial production improved in November, housing prices fell for the third consecutive month, retail sales grew at the slowest pace in three months, and the Chinese government promised to boost consumption while disclosing details of fiscal stimulus. Disappointment over the lack of performance highlighted Friday's emergency stock sell-off.
Charu Chanana, chief investment strategist at Saxo Markets, said the retail sales data “reflects the dire situation on the ground and how the stimulus package has prioritized the optical sector over delivering meaningful economic improvement. “There is,” he said.
The negative mood in Asian stocks came as investors braced for the last full week of trading of the year with a series of central bank meetings including the Federal Reserve, Bank of Japan and Bank of England. be. Traders could start taking profits after global stocks have risen about 20% this year, driven by a rally in U.S. tech stocks and excitement around artificial intelligence.
“The uncertainty this creates may initially lead to further position balancing and limit risky buying activity,” said Chris Weston, head of research at Pepperstone Group in Melbourne. Ta. “Developed market equities have already had such a year, and the added risk of a major event could make things a bit choppy for traders this week.”
South Korea's Kospi index erased gains after opening higher on Monday after President Yoon Seok-yeol was impeached over the weekend. The Bank of Korea pledged to use “all available policy tools” to stabilize stock and currency markets after Yoon's impeachment on Saturday.
“A swift impeachment vote removes near-term uncertainty and could ease sentiment in the near term,” Morgan Stanley economist Kathleen Oh said in a note to clients. . He said if the situation moves quickly towards new elections, “the impact on the real economy is likely to be limited, but downside risks remain if uncertainty persists for longer than the previous two to three months.” ” he said.
U.S. Treasuries edged higher last week after the 10-year benchmark had its worst week since October 2023. The yield fell 1 basis point to 4.39% after rising 24 basis points last week. The Bloomberg dollar index edged lower after rising for the past two weeks.
Swaps traders reduced their bets on the Fed's easing path after a series of mixed data last week. They are currently pricing in about three quarter-point rate cuts over the next 12 months. A week ago, the odds of a fourth rate cut were seen as better than 50/50, suggesting a further pullback could occur.
The Fed will likely ease policy by 25 basis points at its meeting and leave it unchanged in January, Goldman Sachs analysts including Jan Hatzius said in a note to clients, expecting a rate cut next month. I wrote this. “Comments from Fed officials make it clear they want to slow the pace soon.”
French bond futures fell after Moody's Ratings downgraded the country's credit rating from Aa2 to Aa3, three notches below its highest rating. France has already been cut to the same level by Fitch and S&P, putting pressure on the new government to rein in its ballooning budget deficit.
In commodity markets, oil prices pared Friday's gains to fall slightly as deepening geopolitical conflicts and the prospect of sanctions on Russia and Iran defied expectations of a supply glut next year. Gold remained largely unchanged.
This week's main events:
China retail sales, real estate prices, industrial production, Monday
Eurozone HCOB Manufacturing and Services PMI, Monday
ECB President Christine Lagarde speaks on Monday
UK S&P Global Manufacturing and Services PMI, Monday
UK unemployment insurance claims, unemployment rate, Tuesday
UK CPI, Wednesday
Eurozone CPI, Wednesday
US interest rate decisions Wednesday
Japanese interest rate decision Thursday
UK BOE interest rate decision
US Thursday GDP revisions
Japan CPI, Friday
China loan prime rate Friday
Eurozone consumer confidence, Friday
U.S. Personal Income, Expenditures, and PCE Inflation, Friday
The main movements in the market are:
stock
As of 11:23 a.m. Tokyo time, S&P 500 futures were up 0.1%.
Nikkei 225 futures (OSE) rose 0.2%
Japan's Topix remains almost unchanged.
Australia's S&P/ASX 200 falls 0.4%
Hong Kong's Hang Seng fell 0.1%
Shanghai Composite: Almost no change
Euro Stoxx50 futures rose 0.1%
currency
Bloomberg Dollar Spot Index little changed
The euro rose 0.2% to $1.0518.
The Japanese yen fell 0.2% to 153.96 yen to the dollar.
The offshore yuan was almost unchanged at 7.2829 yuan to the dollar.
cryptocurrency
Bitcoin rose 1.7% to $104,590.89.
Ether rises 3% to $3,970.29
bond
The 10-year government bond yield was almost unchanged at 4.39%.
Japan's 10-year bond yield rose 1.5 basis points to 1.055%.
The Australian 10-year bond yield rose 3 basis points to 4.32%.
merchandise
West Texas Intermediate crude oil fell 0.3% to $71.06 a barrel.
Spot gold rose 0.2% to $2,652.73 an ounce.
This article was produced in partnership with Bloomberg Automation.
