Asian stocks rise amid hopes for more policy support – Asia Market Wrap
Asian equities ended a three-day losing streak as investors interpreted a slew of negative economic data as possibly good news for riskier assets.
Stock benchmarks rose in Hong Kong, Japan, and Australia, with the MSCI Asia Pacific Index on course to gain roughly 2% this month. In China, equities overlooked the dismal economic statistics. Official manufacturing and non-manufacturing PMIs in Asia’s largest economy fell short of expectations on Friday, with the former returning to contraction.
US stock futures fell in Asian trading, but Treasuries maintained their gains ahead of important inflation data due later Friday. After dipping on Wednesday, the dollar remained stable and is on track for a monthly decline.
A slowdown in US GDP, dismal manufacturing activity in China, and a decrease in Japanese industrial output highlight the rising challenge for central bankers as they consider their next actions. The slowdown in economic growth also encourages investors to bet on global monetary policy softening.
