Asian Stocks Growth – China Cuts Rates
China cut interest rates to boost sharp economic growth. Hence, Asian stocks rose on Thursday. Japan also announced a double-digit increase in exports. Benchmarks are promoted in Tokyo, Shanghai, Hong Kong, and Seoul. On Wall Street, the benchmark S&P 500 index fell 1%. Investors were trying to figure out how quickly the Federal Reserve would return economic stimulus to reduce inflation. China’s central bank has since cut interest rates on one- and five-year loans; Which reduced the growth of the world’s second-largest economy to 4%; A year earlier in the last quarter, after a crackdown on growing debt among real estate developers. According to the ING report, banks will respond by increasing lending.
The Shanghai Composite Index rose 0.1% to 3.563.11. Hang Seng rose to 24,570.06, for a total of 1.8%. The Nikkei 225 rose to 27,574.43, up 0.4% overall; Since December, exports have increased by 17.5% compared to the previous year. Growth in auto exports accelerated to 17.5%, from 4.1%. Kospi rose to 2,844.72, down less than 0.1%. Sydney’s S&P ASX 200 fell to 7.329.00 and lost less than 0.1%. New Zealand and Bangkok fell. Jakarta and Singapore advanced. The S&P 500 on Wall Street failed to 4,532.76 after selling technology shares. The Dow Jones Industrial Average fell to 35,028.65, or 1%. Apple fell 2.1%, And Nvidia decreased by 3.2%. The technology sector of the S&P 500 has fallen by more than 8% this year.
Asian Stocks
The Nasdaq composite lost 14,340.26, for a total of 1.1%. The index is 10.7% lower than the all-time high of November. The market has succumbed to renewed fears of inflation and the Fed tightening. Shares fell after federation officials said they had a plan to cut bond purchases and other incentives that push up stock prices; Will accelerate in the U.S. due to rising inflation to a 4-decade high. According to the data, investors had a 86% better estimate that the Fed would raise short-term rates at its March meeting.
Joe Biden on Wednesday called on the Fed to do more to fight inflation. Investors watch the latest round of corporate earnings; Thus, inflation may make a profit. Procter & Gamble rose 3.4% after reporting strong financial results. The company says consumers are willing to pay a higher price.
The index price of U.S. oil on the New York Mercantile Exchange was $85.64 and lost 16 cents in total. The cost of Brent oil in London fell by 24 cents; The total was $88.20 a barrel. The dollar rose to 114.27 yen on Wednesday. The euro rose to $1.1356.
Conclusion
According to HSBC strategists, global investors should no longer outperform the U.S. stock market; While they maintain an advantage over risky assets amid a difficult start to the year. HSBC strategists said they had reduced excess weight in U.S. stocks; Low weight in eurozone stocks was also reversed.
Analysts in the U.S. believe that an increase in actual interest rates in the coming weeks will pressure stocks. However, they also point out that expectations for a single share gain in recent weeks have favored the U.S. instead of the eurozone, which runs counter to recent moves; Considering current market indicators.
More specifically, strategists expect global activity data to decline in the first half of the year. While the Federal Reserve and other central banks will continue to lift their cups, they say mood and positioning rates are already too low.
They say emerging markets could be hiding places. China, in particular, is at a different stage of the growth and liquidity cycle. The S&P 500 SPX fell -0.97% to 5% this year. MSCI Europe, Middle East, and Australia Index; Decreased by 1% against the dollar. The MSCI Emerging Markets Index grew by 2% this year.
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