Asian Stocks Continues Rising Trend While Li Auto Drops – Asia Market Wrap

After seven straight days of advances, Asian stocks took a break on Tuesday as the mood was negatively impacted by Li Auto Inc.’s underwhelming earnings report. The majority of the local currencies declined versus the US dollar.

Trader profit-taking followed a rise that brought the benchmark to overbought levels, and Chinese stocks fell. Hong Kong’s equity market experienced a decline, with Li Auto leading the losses in the MSCI Asia Pacific index following the company’s lower-than-expected first-quarter vehicle sales. Australia’s stocks fell as well, but Japanese stocks held firm due to favourable insurance company earnings.

China’s economic problems are still a hot topic in Asia, as recent data indicates that the country’s indebted real estate market is not showing any signs of recovery. Land sales last month brought in the least amount of money for local governments in eight years, illustrating the financial difficulties faced by those agencies that rely heavily on this type of revenue for their overall income.

The rate on US 10-year Treasuries barely moved, but the yield on Japan’s 10-year paper increased. As investors continued to observe the cautious tone from Federal Reserve officials. Loretta Mester, the president of the Cleveland Fed, has joined a group of US policy officials who have stated in an overnight speech that there is less room for interest rate decreases than previously thought.