Oil Dips as China Stocks Continue Their Liquidity-Led Rally – Asia Market Wrap

Chinese stocks rose further as investors anticipated earnings from the country’s largest banks and corporations, including Alibaba and BYD, which would determine if the surge could last.

Goldman Sachs strategists increased their 12-month forecast for the CSI 300 Index to 4,900 from 4,500 on Thursday. The index rose as much as 1.2%, heading for its best finish since March 2022, as China had its busiest results day this week, with 441 locally listed companies reporting, according to data.

Indexes elsewhere in Asia were mixed ahead of the Fed’s preferred price gauge, which is expected Friday. Oil declined 0.7% after rising in the previous session on the fading chance of a peace deal between Russia and Ukraine. The Dollar index rose, while Treasuries fell, with benchmark 10-year rates climbing 1 bp to 4.21%.

China’s stock market is on track for a record turnover this month, highlighting the ferocity of a bull run that is attracting new investors by the day. Market euphoria in China is strong, even as banks and regulators signal that they may try to tone things down, with US tariffs and a deep-rooted property problem stressing the economy.

In commodities, oil lost some of its gains from the previous session as prospects for peace in Ukraine faded, reducing the probability that more of Moscow’s supplies will reach broader markets in the short term.