From Asia Financial: 2024-05-06 06:49:59

Asian stocks reached their highest in over a year on bets of a Fed rate cut and strong Chinese gains. Markets in China were upbeat after a holiday, with MSCI’s Asia-Pacific index rising 0.70% and China’s blue-chip index up 1.41%. Currency markets also saw movement with the yen and yuan strengthening.

Chinese shares offshore posted strong gains last week as mainland markets were closed for the Labour Day holiday. Hong Kong’s Hang Seng Index rose 4.7% last week and the Nasdaq-listed Golden Dragon China Index jumped 5.5%. Currency markets saw the yen weaken and the yuan strengthen, with onshore and offshore rates showing gains.

Chinese markets rebounded with supportive policies, as the Politburo pledged to step up economic support. The country’s services sector showed a slight slowdown in expansion but saw growth in new orders. A broader market rally across Asia was fueled by US non-farm payroll data and expectations of Fed rate cuts. Futures for Eurostoxx 50 and Nasdaq gained, while the dollar remained steady.

Traders remained watchful for yen volatility after suspected intervention from Japanese authorities last week. Tokyo is suspected to have spent over 9 trillion yen to support its currency, leading to fluctuations in exchange rates. Economic leaders highlighted foreign exchange market volatility as a risk factor affecting regional growth prospects. In commodities, Brent and US crude futures rose, while gold prices increased.



Read more at Asia Financial: China Gains, Fed Cut Bets Lift Asian Shares to Highest in a Year