China Shares Gain in Catchup as Asia Equities Rise: Markets Wrap

(Bloomberg) — Asian equity benchmarks gained as risk sentiment improved after softer-then-expected US payroll data revived bets the Federal Reserve will cut interest rates this year. China’s stock market climbed as it reopened after a holiday break.

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China’s CSI 300 Index climbed as much as 1.6% as Beijing’s supportive policy stance added impetus to its momentum. Hong Kong’s benchmark Hang Seng Index rose for a 10th straight session. Japanese markets are shut for a holiday.

Global stock markets have been given a fillip after data showing US employers scaled back hiring fueled investor expectations that a data-dependent Fed might start easing policy later this year.

China’s “market sentiment appears to be incrementally improving,” said Nicholas Yeo, head of China equities at abrdn Plc, referring to strong travel numbers, better-than-expected corporate results and stock market reforms. “More material support via larger-than-expected fiscal spending and additional help for the property market would go a long way to materially improve sentiment in China.”

Oil rose in early trading after Israel closed the Kerem Shalom humanitarian crossing into Gaza on Sunday following a rocket barrage fired by Hamas, in an incident that may derail weeks-long delicate hostage and cease-fire negotiations. Saudi Arabia lifted the price it sells crude to Asia as it attempts to tighten the oil market.

Traders will also be mindful of a swath of central bank meetings this week, led by a likely hawkish Reserve Bank of Australia on Tuesday following stronger-than-expected inflation data last month. Chinese activity data as well as inflation readings in key emerging markets are also due.

Some key events this week:

• China Caixin services PMI, Monday

• Eurozone S&P Global Services PMI, PPI, Monday

• Australia rate decision, Tuesday

• Eurozone retail sales, Tuesday

• UBS earnings, Walt Disney, BP earnings, Tuesday

• Minneapolis Fed President Neel Kashkari speaks, Tuesday

• Brazil rate decision, Wednesday

• Sweden rate decision, Wednesday

• Toyota earnings, Wednesday

• China trade, Thursday

• Malaysia rate decision, Thursday

• Mexico CPI, rate decision, Thursday

• UK BOE rate decision, Thursday

• Canada unemployment, Friday

• UK industrial production, GDP, Friday

• Chicago Fed President Austan Goolsbee speaks, Friday

Story continues

Some of the main moves in markets:Stocks

• S&P 500 futures were little changed as of 10:47 a.m. Tokyo time

• Nikkei 225 futures (OSE) rose 1%

• Australia’s S&P/ASX 200 rose 0.6%, more than any closing gain since April 29

• Hong Kong’s Hang Seng fell 0.3%, more than any closing loss since April 19

• The Shanghai Composite rose 0.9%, more than any closing gain since April 26

• Euro Stoxx 50 futures rose 0.3%

Currencies

• The Bloomberg Dollar Spot Index was little changed

• The euro was little changed at $1.0766

• The Japanese yen fell 0.3% to 153.55 per dollar

• The offshore yuan slipped 0.3%, more than any closing loss since April 10

Cryptocurrencies

• Bitcoin rose 0.6% to $64,146.03

• Ether strengthened 0.2%,rising for the fifth straight day, the longest winning streak since April 8

Bonds

Commodities

• West Texas Intermediate crude rose 0.3% to $78.31 a barrel, ending a five-day streak that saw a 6.8% decline

• Spot gold rose 0.2% to $2,306.59 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Sangmi Cha.

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