Asian Stocks Rise After US Gains, China Support: Markets Wrap

(Bloomberg) — Asian stocks were mostly higher in early trading after U.S. stocks hit a new record high amid resilient corporate earnings and as China took steps to shore up its real estate market.

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Stocks rose in Australia and Japan, and Hong Kong futures pointed to early gains on Monday. US stock futures also rose after the benchmark S&P 500 index rose on Friday and the Dow Jones Industrial Average closed above 40,000 points for the first time.

Traders will look to China on Monday after Beijing's attempt to rescue the country's beleaguered real estate market, even as concerns persist that the measures may be too small. The recent rally in Chinese stocks has extended to Asian stocks, with the MSCI Asia Pacific Stock Index rising for six straight days, matching its longest winning streak of the year.

Market participants will be watching for any impact on the market after a helicopter carrying Iranian President Ebrahim Raisi crashed in dense fog. Oil fell in early trading.

The Bloomberg Dollar Index was little changed on Monday, after falling last week, as traders bet on the Federal Reserve's outlook after inflation fell more in April than economists expected. A group of Fed officials are scheduled to speak this week, including Governor Christopher Waller who is scheduled to speak specifically about the US economy and monetary policy.

“We continue to expect the Fed to cut interest rates by 50 basis points this year, with further cuts in 2025 and 2026,” said Solita Marsili, chief investment officer for the Americas at UBS Global Wealth Management. “This creates a benign macro environment that supports our investment recommendations on high-quality bonds and stocks.”

Australian 10-year Treasury yields rose in early Asian trading, while the 10-year Treasury yield was little changed.

This week, traders will look to economic activity readings in Europe as well as inflation readings in the UK, Canada and Japan. Political decisions are also due in New Zealand, Indonesia, South Korea and Chile, while Nvidia Corp is set to report earnings.

Some key events this week:

• Interest rates on Chinese loans, Monday

• Thailand GDP, Monday

• Bank of England Deputy Governor Ben Broadbent talks about the monetary policy transition on Monday

• Chile GDP, Monday

• The Reserve Bank of Australia releases the minutes of its May policy meeting on Tuesday

• Canadian Consumer Price Index, Tuesday

• Federal Reserve Governor Christopher Waller speaks about the US economy and monetary policy, Tuesday

• Bank of England Governor Andrew Bailey delivers a lecture on Tuesday

• Interest rate decision in New Zealand, Wednesday

• Interest rate decision in Indonesia, Wednesday

• South African Consumer Price Index, Wednesday

• UK Consumer Price Index, Wednesday

• FOMC meeting minutes from April 30 to May 1, Wednesday

• Singapore Consumer Price Index, GDP, Thursday

• South Korea's interest rate decision, Thursday

• Global S&P Purchasing Managers' Index (PMI) for India's manufacturing and services, Thursday

• Eurozone Global Services Purchasing Managers' Index (PMI), S&P Global Manufacturing Index, Consumer Confidence, Thursday

• US new home sales and initial unemployment claims, Thursday

• Interest rate decision in Chile, Thursday

• Japanese Consumer Price Index, Friday

• German GDP, Friday

• Malaysian Consumer Price Index, Friday

• US Durable Goods, University of Michigan Consumer Confidence, Friday

The story continues

Some key movements in the markets:

Stores

• S&P 500 futures rose 0.1% as of 9:02 a.m. Tokyo time.

• Hang Seng futures rose 0.8%

• There was little change in the Japanese Topix index

• Australia's S&P/ASX 200 rose 0.3%.

• Euro Stoxx 50 futures fell 0.2%

Currencies

• The Bloomberg Dollar Spot Index was little changed

• There was little change in the euro at $1.0871

• There was little change in the Japanese yen at 155.76 to the dollar

• There was little change in the yuan in external transactions at 7.2342 to the dollar

Digital currencies

• Bitcoin rose 0.1% to $66,250.38

• Ethereum fell 0.1% to $3,071.62

Bonds

Goods

• West Texas Intermediate crude fell 0.3% to $79.81 a barrel

• Spot gold rose 0.1 percent to $2,417.97 per ounce

This story was produced with assistance from Bloomberg Automation.

-With assistance from Richard Henderson.

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