Asia stocks shrug off China data disappointment, Japan index pierces 33-year high

Hong Kong, May 16 (BNA): Asian stocks mostly held steady on Tuesday, despite weaker-than-expected Chinese economic data, with Japan’s broad index hitting a 33-year high amid a rally in chipmakers after sector gains. American technology.

Anticipation of a weaker dollar also dampened emerging markets, although investors were wary of crucial negotiations over the US government’s debt ceiling, with just over two weeks left before the government runs short of money to pay its bills.

Japan’s Topix index rose 0.5% to 2125.45 in afternoon trading, after earlier hitting 2126.14, its highest level since August 1990. The Nikkei rose 0.78% to 29858, Reuters reported.

In the US overnight, Meta Platforms Inc rose 2.16% as one of the highest boosts for both the Nasdaq and the S&P 500 after the broker was upgraded to “buy”.

Data on Tuesday showed that China’s industrial output grew 5.6% in April from a year earlier, accelerating from the 3.9% pace recorded in March and marking the fastest growth since September 2022. But it was far short of expectations for a 10.9% increase in a poll. Reuters Analysts.

Retail sales also missed expectations, coming on the back of weak industrial growth, credit and import indicators in China, highlighting the shaky post-COVID recovery.

With softer readings, the market expects the policy response to try to support the economy and make sure business confidence returns and growth is more sustainable, said Kerry Craig, global market analyst at JPMorgan.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose 0.32%.

“The market is thinking that the Fed is done (raising interest rates) and that the US dollar is going to go down a little bit to support the markets in Asia,” Craig said.

The dollar index fell 0.029%, with the Japanese yen strengthening 0.10% against the greenback at 135.98 per dollar.

Sluggish manufacturing data from New York state on Monday raised concerns about a slowing US economy that could help lower inflation, helping the Federal Reserve to pause interest rate hikes.

The benchmark 10-year note fell 2.1 basis points to 3.4831% on Tuesday.

China’s main stock index maintained the momentum from Monday’s rally, rising 0.93%.

However, Australia’s S&P/ASX 200 lost 0.42%, weighed down by losses in gold and technology stocks, as traders await minutes from the central bank’s latest policy meeting to assess the path of higher interest rates.

US crude rose 0.41 percent to $71.40 a barrel, and Brent crude recorded $75.57, up 0.45 percent on the day.


READ MORE  Asian shares slip as investors gauge China reopening policy

Source link

Leave a Comment