China Boosts Asian Stocks, Whilst Dollar Remains Stable – Asia Market Wrap
Asian markets rose on a spate of encouraging reports from China, while the Dollar held firm as the clock ticked down to a tight US election.
Chinese equity indexes surged more than 2%, driving the region’s advances. Following a public holiday, Japan’s Nikkei 225 surged, while shares in Australia and South Korea fell. The Dollar index remained steady, while the 10-year Treasury yield rose 1 bp, while US stock futures were barely changed. In Japan, the Yen fell against the Dollar, and the country’s stocks will have an extra 30 minutes of trade.
After a cautious start to the day, stocks rose on data showing China’s service activity expanding at its quickest rate since July, as well as comments from the premier indicating that the country had considerable policy room. Sentiment also improved after the nation’s top legislative body reviewed a measure aimed at reducing the financial load on local leaders.
The US presidential election will take front stage this week, with polls showing Americans split between Donald Trump and Kamala Harris. The possibility of a challenged result may delay the vote count for weeks, perhaps increasing volatility.
In commodities, gold fell, while oil was little changed after rising over 3% on Monday due to increased Middle Eastern tensions and OPEC+’s decision to extend supply cuts. Bitcoin gained nearly 2%.
