Asian Stocks Rise to 27-Month High on US Rate Cut Hopes
==========
Asian stocks hit 27-month highs on Thursday after soft US data and dovish Federal Reserve comments on inflation increased the chance of a rate cut by the US central bank in September. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.9% to its highest since April 2022, while the Nikkei in Japan was up 0.9%, close to its peak in March, and the broader Topix hit all-time highs. Stocks in Hong Kong gained 0.3% at close of trading on Thursday – its fourth straight rise this week, while Taiwan’s main index also struck a record led by the tech sector and chip giant Taiwan Semiconductor Manufacturing Co (TSMC), which cleared T$1,000 for the first time. In Hong Kong, leading Chinese carmakers such as BYD and Li Auto rallied by 1.9% and 3.9% respectively, as EU countries showed signs of wavering on imposing tariffs on Chinese electric vehicles. The US ISM measure of services activity surprised by sliding to its lowest since mid-2020, with employment notably weak ahead of the June payrolls report due on Friday. Markets quickly lifted the probability of a September rate cut to 74%, from 65%, while pricing in 47 basis points of easing for this year. Yields on 10-year Treasuries dropped 8 basis points in response to 4.355%. The drop in the dollar was a boon for commodities, with gold rallying to $2,358 an ounce, from $2,318 at the start of the week. Oil prices eased a touch, having gained overnight when a surprisingly large decline in US crude stocks pointed to firmer demand as the US driving season gets underway.
#AsianStocks #UsRateCut #Msci #Nikkei #Topix #HongKong #Taiwan #Tsmc #Byd #LiAuto #IsmMeasure #Gold #OilPrices
https://www.asiafinancial.com/asian-stocks-rise-to-27-month-high-on-us-rate-cut-hopes
Asia Financial /
npub1tf…4lkk0
2024-07-04 13:20:33
Author Public Key
npub1tfqzenj4wwscy7hhrs7d9wygkqncl5ywgqlcc32lffwtg5yskruq74lkk0Published at
2024-07-04 13:20:33Event JSON
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"content": "Asian Stocks Rise to 27-Month High on US Rate Cut Hopes\n==========\n\nAsian stocks hit 27-month highs on Thursday after soft US data and dovish Federal Reserve comments on inflation increased the chance of a rate cut by the US central bank in September. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.9% to its highest since April 2022, while the Nikkei in Japan was up 0.9%, close to its peak in March, and the broader Topix hit all-time highs. Stocks in Hong Kong gained 0.3% at close of trading on Thursday – its fourth straight rise this week, while Taiwan’s main index also struck a record led by the tech sector and chip giant Taiwan Semiconductor Manufacturing Co (TSMC), which cleared T$1,000 for the first time. In Hong Kong, leading Chinese carmakers such as BYD and Li Auto rallied by 1.9% and 3.9% respectively, as EU countries showed signs of wavering on imposing tariffs on Chinese electric vehicles. The US ISM measure of services activity surprised by sliding to its lowest since mid-2020, with employment notably weak ahead of the June payrolls report due on Friday. Markets quickly lifted the probability of a September rate cut to 74%, from 65%, while pricing in 47 basis points of easing for this year. Yields on 10-year Treasuries dropped 8 basis points in response to 4.355%. The drop in the dollar was a boon for commodities, with gold rallying to $2,358 an ounce, from $2,318 at the start of the week. Oil prices eased a touch, having gained overnight when a surprisingly large decline in US crude stocks pointed to firmer demand as the US driving season gets underway.\n\n#AsianStocks #UsRateCut #Msci #Nikkei #Topix #HongKong #Taiwan #Tsmc #Byd #LiAuto #IsmMeasure #Gold #OilPrices\n\nhttps://www.asiafinancial.com/asian-stocks-rise-to-27-month-high-on-us-rate-cut-hopes",
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