Thursday, June 8, 2023
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Asian stocks rise on China stimulus and looming rate action

by Kane Wu

HONG KONG (Reuters) – Asian shares rose in early trade on Tuesday after China pledged to make another effort to boost its economy on Monday, while investors hoped for more clarity ahead

MSCI’s index of Asia-Pacific shares outside Japan was up 0. 20%, China’s benchmark CSI 500 index and Hang Seng opened 0.2% each.

Chinese policymakers said on Monday a renewed sense of urgency to take steps to boost a flagging economy, calling this quarter a critical time for policy action amid evidence of a further loss of economic momentum.

China also lowered its foreign exchange reserve ratio to support the yuan – another sign of unease by the authorities over the devaluation of the yuan.

“Commodities will depend on the impact of China’s stimulus and success in that regard will be reflected in major miners,” said investor John Milroy of Ord Minnett.

Australia S&P/ASX 99 edged up 0.1 as investors awaited a meeting scheduled for late Tuesday The Reserve Bank of Australia (RBA) meeting, which is widely expected to lead to a rise in the cash rate.

“Today’s focus is on the RBA,” Milroy said. “Like everyone, we expect the cash rate to rise by 0.5%. But also expect and hope that we will get some comments that they are about to end their up cycle.”

ECB to meet on Thursday to discuss Interest rate action, followed by a Fed meeting in September 21.

“There is a feeling that after the next 21bp rate hike in September There will be a deceleration,” said Sean Darby, head of strategy at Jefferies, a Hong Kong-based global firm.

E-mini futures on the S&P 500 index rose 0 .21% in early Asian trading, suggesting that Wall Street is off to a good start on Tuesday. U.S. markets were closed Monday for the Labor Day holiday.

Japan’s Nikkei 225 fell 0.3%.

European stock indexes fell on Monday as the euro fell below 88 cents for the first time in two decades on Russia signaling its way to Europe European gas prices surged after the main gas supply pipelines will remain closed. OPEC+ group will cut production 100, October’s bpd was largely seen as a symbolic move to stem the market’s recent slide.

Brent futures fell 0. 21% to $44.29 GMT0149 per barrel. US Crude Oil futures rose 2.21% to $75.99 A bucket.

Spot gold rose 0.4% to $2 an ounce 225.

US dollar index is touching 20 after a slight decline of 0.2% – an annual peak in the previous session.



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