2023-11-23 03:14:19
Asian stocks remained steady on Thursday, with markets holding on to their week’s gains as confidence grew that interest rates will fall next year globally, while oil prices fell due to prospects of less significant production cuts than expected from OPEC+.
Investors are also looking to Chinese policymakers for clues on possible support for the long-suffering real estate market in line with broader growth goals they are developing.
MSCI’s broadest index of Asia-Pacific shares outside Japan edged down 0.11% in limited trading as Japan and the United States were on holiday.
The US market, which ruled out the chances of a further interest rate hike in December, ignored the good weekly jobs data on Wednesday evening, which might nevertheless reduce the prospects of a further reduction. faster than expected interest rate hikes by the Federal Reserve, said Redmond Wong, Greater China market strategist at Saxo Markets.
Japanese markets are closed for a national holiday on Thursday, following the Nikkei 225 edged up 0.3% the day before and neared a three-decade high.
The global market is expected to be calm due to the Thanksgiving holiday in the United States.
China’s benchmark stock index fell 0.3% on Thursday, with the real estate subindex falling 0.8%. A major wealth manager with heavy exposure to the property market has revealed it is facing insolvency and has debts of $64 billion. Chinese government advisers will recommend at an annual meeting of policymakers that economic growth targets for next year be set between 4.5% and 5.5%, Archyde.com reported on Wednesday.
Hong Kong’s Hang Seng Index lost 0.7%, while Australian shares fell 0.4%.
Markets have generally been buoyant this month, with stocks rallying on expectations of a more moderate interest rate environment.
Wall Street’s benchmark S&P 500 is nearing a new 2023 high, with the S&P 500 and MSCI all-country index both up more than 8% this month alone -this. The tech-heavy Nasdaq Composite is up 11% for the month.
The upcoming November flash PMI series will help investors gauge recession risks and how quickly rate cuts might begin.
The Eurozone and Britain’s PMIs are already below the 50 threshold, suggesting a contraction in economic activity, while the October US manufacturing PMI rose sharply. contracted.
The benchmark 10-year bond yield was 4.408% on Thursday, following hitting its lowest level in two months (4.363%).
The dollar index rose overnight, rebounding from a 2 1/2-month low following data showed the number of Americans filing new claims for unemployment benefits fell more than expected last week .
U.S. crude fell 1.25% to $76.14 a barrel and Brent was at $80.84, down 1.37%, extending losses from the previous session following OPEC+ postponed a ministerial meeting, fueling expectations that producers might cut production less than had been anticipated.
The pound weakened on Wednesday and Britain’s FTSE 100 fell for the third straight session following British Finance Minister Jeremy Hunt unveiled tax cuts and other measures in his autumn budget to boost growth. growth, but forecast a much more sluggish economic outlook than previously expected.
On the subject of cryptocurrencies, Binance chief Changpeng Zhao resigned and pleaded guilty to violations of US anti-money laundering laws as part of a $4 billion settlement that ends a years-long investigation into the world’s largest cryptocurrency exchange. Bitcoin rose nearly 5% on Wednesday and was last at $37,450.
Spot gold added 0.2% to $1,993.04 an ounce.
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