Asia, Daily Dose

Asian Stocks Struggle to Extend Wall Street Rally – Asia Market Wrap

Stocks in Asia failed to gain traction as a rise in China stalled and a spate of significant wage-increase negotiations in Tokyo fueled speculation that the Bank of Japan’s interest-rate hike is soon.

Shares in mainland China fell, as Country Garden Holdings’ failed bond payment weighed on developers. The Hang Seng China Enterprises Index rose over 20% from its recent low. Following a record-breaking day, US and European equity contracts remained largely unchanged.

Japanese stocks fell and the yen rose after Toyota Motor and a wave of other corporations agreed to pay increases, adding to indicators of a durable wage-price cycle. Investors are watching this week’s union pay settlements to see if pricing pressures will be severe enough for the Bank of Japan to boost interest rates as early as next week.