Asian Shares in Tight Range, Dollar Extends Gains
Asia’s benchmark equity index swung between gains as losses as Japanese and Chinese equities were mostly higher while the rest of the region fell. Bloomberg’s gauge of the dollar climbed back toward a one-year high.
Chinese equities rose as the authorities were said to be planning to cut taxes for home purchases to help revive a moribund housing market. US stock futures were little changed after the S&P 500 Index gained for a fifth day Monday. Bitcoin’s record-breaking rally took the digital asset past $89,000.
Investors in Asia are digesting Beijing’s stimulus package announced Friday, which relieved some of the debt burden on local governments but lacked the sweeping fiscal support many investors had hoped for. Chinese data published Monday showed that credit expansion slowed more than economists forecast last month.
“I still think that the upcoming US policy changes are important in the short term but resolving the China issues are equally critical and both meet when analysing the potential impact of US tariffs on China,” said Rajeev De Mello, chief investment officer at Gama Asset Management.
Treasuries dropped in Asia after being closed worldwide on Monday for a US holiday. The 10-year yield climbed three basis points to 4.33%. The Bloomberg Dollar Spot Index ticked higher for a third day after jumping 0.5% Monday. Oil was little changed following its biggest decline in two week.
The S&P 500 closed 0.1% higher on Monday, hovering near the 6,000 mark and notching its 51st record this year. The Dow Jones Industrial Average gained 0.7%.
The next major item on the agenda looks to be US inflation figures due Wednesday. The core consumer price index, which excludes food and energy, likely rose at the same pace on both a monthly and annual basis compared with September’s readings.
Japanese Prime Minister Shigeru Ishiba on Monday pledged more than $65 billion of support for the nation’s semiconductor and artificial intelligence sector over the next decade. He was speaking at a press briefing after winning a vote in parliament to stay on as premier.
The prime minister said he wanted to spread positive examples of regional revitalization like TSMC’s chip plant in Kumamoto across the nation, and hoped aid for the sector would serve as a catalyst to generate public and private investment of more than ¥50 trillion ($325 billion) over the next 10 years. The semiconductor company Renesas Electronics Corp. shares jump at the open.
Nikkei 225 futures (OSE) rose 0.7%, Japan’s Topix rose 1%, Australia’s S&P/ASX 200 fell 0.3%, Hong Kong’s Hang Seng fell 0.5%, The Shanghai Composite rose 0.2%.
Source: Bloomberg
