Asian stock market growth stoked by China tech stocks; US futures bounce back
Asian stocks rose on Tuesday amid a surge in some tech companies and investors’ assessment of China’s efforts to stem the tide.
An Asia-Pacific stock index rose for the third session, helped by Chinese tech companies. US and European futures are back after the Wall Street drop.
Shanghai has reported a three-day zero-community transition, a milestone that could begin to unleash a growth-sapping lockdown for officials.
A challenging global economic outlook also tends to shape emotions amid high food and fuel costs and tightening of financial settings. Oil prices rose to about 4 114 a barrel and a record high in agricultural prices.
Treasury yields have risen and the dollar gauge has fallen. Cryptocurrencies have experienced recent stability turmoil, keeping Bitcoin close to around $ 30,000.
U.S. data on Monday showed that manufacturing activity in New York State contracted unexpectedly in May for the second time in three months. It follows Chinese statistics showing a decline in economic activity due to covid-linked barriers.
Economic reports have raised concerns about continued price pressures as well as a slowdown in the global economy that is forcing the Federal Reserve and other central banks to tighten monetary policy.
Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management, said in a note that “with the slightest signs of declining inflation, there is pressure on the Fed to accelerate its tightening.” Combined with the effects of Russia’s war in Ukraine and China’s cowardly struggle, this background “suggests that global growth may slow down faster than predicted.”
John Williams, president of the New York Fed, downplayed the liquidity crunch in financial markets, saying it was expected by investors due to uncertainty over global events and growing volatility due to changes in US monetary policy.
Elsewhere, Twitter Inc. shares plunged Monday after Elon Musk speculated it might renegotiate its takeover, saying an effective deal at a lower price would not be “out of the question.”
What to watch this week:
- Fed Chair Jerome Powell in Fed Speaker’s Slate Tuesday
- The Reserve Bank of Australia released the minutes of its May policy meeting on Tuesday
- G-7 Finance Minister and Central Bankers meet on Wednesday
- Eurozone, UK CPI Wednesday
- Philadelphia Fed President Patrick Harker spoke Wednesday
- China debt main rate on Friday
Some of the major rice in the market:
- The S&P 500 futures rose 0.4% in Tokyo by 10:50 a.m. The S&P 500 is down 0.4%
- Nasdaq 100 futures rose 0.7%. The Nasdaq 100 is down 1.2%
- Japan’s Topix index added 0.3%
- Australia’s S&P / ASX 200 index rose 0.4%
- South Korea’s Kospi rose 0.6%
- Hong Kong’s Hang Seng Index rose 1.9%
- China’s Shanghai Composite Index has changed slightly
- Eurostocks 50 futures rose 0.8%
- The Bloomberg Dollar Spot Index fell 0.1%
- The euro was $ 1.0444, up 0.1%
- The Japanese yen was 129.29 per dollar, down 0.1%
- Offshore yuan was 6.7828 per dollar, up 0.2%
- Yields on 10-year Treasuries rose one basis point to 2.89%
- Australian 10-year bond yield was 3.39%
- West Texas Intermediate crude rose 0.3% to 114.56 a barrel
- Gold was at 8 1,826.32 an ounce, up 0.1%
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