logo |

News

    Home   >     Original    >     Main body

    Asia markets rise on hopes of easing China tech crackdown

    Abstract:Asian shares edged higher on Tuesday despite data reinforcing investor fears the global economic recovery may be more fragile than expected, even as inflationary pressures remain high.

      Asian shares advanced on Tuesday, led by a jump in technology majors, as hopes grow for an easing of Chinas unprecedented regulatory crackdown on its once-freewheeling tech sector.

      Market sentiment has also been bolstered as Shanghai achieved the long-awaited milestone of three straight days with no new COVID-19 cases outside quarantine zones, which could lead to the beginning of the lifting of restrictions.

    Blank

      European markets were set for a higher open with the pan-region Euro Stoxx 50 futures up 0.85%, German DAX futures rising 0.87% and FTSE futures gaining 0.45%. U.S. stock futures, the S&P 500 e-minis, were up 0.42%.

      MSCIs broadest index of Asia-Pacific shares outside Japan gained 1.5% on Tuesday, but the index is still down 6.4% so far this month. U.S. stocks ended the previous session with mild losses.

      In Tokyo, the Nikkei rose 0.33% in afternoon trade, while in Australia the S&P/ASX200 index gained 0.25%.

      Mainland China‘s CSI300 Index gained 0.95% while Hong Kong’s Hang Seng Index was 2.35% higher, as tech firms listed in the city jumped more than 4% on hopes of Beijings crackdown on the sector being relaxed.

      Chinese Vice-Premier Liu He is scheduled to speak at a Tuesday meeting with tech executives that has been convened by the countrys top political consultative body to promote the development of the digital economy, people familiar with the matter told Reuters.

      The meeting, currently underway, is being closely watched for remarks by Liu and others for clues as to how far Chinese authorities will go in easing a regulatory crackdown since late 2020 on the previously high-flying tech sector.

      “The meeting today has been widely interpreted by the market that the worst would be over for Chinas year-long, multi-pronged crackdown on its internet industry. This has led to the rise of several Hong Kong-listed tech companies,” said Zhang Zihua, chief investment officer at Beijing Yunyi Asset Management.

      However, economic growth fears in the worlds two largest economies have re-emerged following weak retail sales and factory production figures in China and disappointing U.S. manufacturing data..

      Investors are also weighing the global inflationary impact of lockdowns in China to combat the coronavirus, which have halted factory production in areas across the country.

      “One important way Chinas lockdowns could impact the rest of the world is through its impact on inflation. After all, inflation – and the central bank response – has been a stiff headwind for global bond and equity markets this year,” Capital Economics wrote in a note to clients.

      The New York Feds Empire State manufacturing index published on Monday showed an abrupt fall during May and shipments fell at their fastest pace since the beginning of the pandemic.

      In afternoon Asian trade, the yield on benchmark 10-year Treasury notes rose to 2.9203% compared with its U.S. close of 2.879% on Monday.

      The two-year yield, which rises with traders expectations of higher Fed fund rates, touched 2.6112% compared with a U.S. close of 2.568%.

      “Markets currently price the Fed funds rate to be 53 basis points higher at the next meeting in June, and 200 basis points higher by year end,” said Imre Speizer, Westpacs head of New Zealand strategy.

      The U.S. dollar index, which tracks the greenback against a basket of currencies, was flat in Asian trade to be at 104.15.

      The dollar rose 0.17% against the yen to 129.38, getting closer to its high this year of 131.34.

      The European single currency was up 0.1% on the day at $1.044, having lost 0.96% in a month.

      U.S. crude dipped 0.39% to $113.76 a barrel. Brent crude fell to $113.88 per barrel.

      Gold was slightly higher. Spot gold was traded at $1,824.44 per ounce. [GOL/]

      (Reporting by Scott Murdoch and Julie Zhu in Hong Kong; Editing by Lincoln Feast.)

      

      

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
    Current Rate  :
    --
    Amount
    United States Dollar
    Available
    -- United States Dollar
    Risk Warning

    The Database of WikiFX comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. WikiFX doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. WikiFX will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by WikiFX are not in accordance with the fact, please click 'Complaints 'and 'Correction' to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the Wikifx site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with WikiFX, the client should bear full responsibility for their consequences.