(Bloomberg) — Chinese tech stocks rose on gains in industry leaders, but other Asian markets remained range-bound as investors awaited U.S. inflation data due this week.
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The Hang Seng High-Tech Index rose more than 1%, supported by gains in Tencent Holdings and Alibaba Group Holding, which report results later on Tuesday. Investors are watching the earnings of China’s big tech companies for confidence that an early rally in Chinese stocks can continue. Japanese stock prices were strong, but Australian stock prices fell.
Chris Weston, head of research at Pepperstone Group, said: “All eyes are on Tencent and Alibaba’s earnings, and both companies need to deliver earnings that beat consensus results and exciting guidance that boosts expectations.” said.
Japan’s 20-year government bond yield rose to its highest level since 2013 on expectations that the central bank will once again reduce the amount of government bond purchases it makes in regular operations. The yen fell against the dollar for three consecutive sessions. The 10-year U.S. Treasury yield was little changed, and the Bloomberg Dollar Index was flat.
The latest Chinese economic data shows a patchy recovery, so any downturn in earnings could dampen market momentum. Hong Kong markets will be closed on Wednesday for a public holiday, so any reaction to the results will first be seen in the Nasdaq Gold Dragon China Index.
U.S. futures edged lower in Asian trading after the S&P 500 ended little changed. Economists will analyze U.S. producer price data later Tuesday to assess the impact of categories reflected in the Federal Reserve’s preferred inflation measure. Chairman Jerome Powell is also scheduled to speak. The U.S. consumer price index, released on Wednesday, is expected to show a moderate trend, although it remains too high to justify a rate cut.
Some prominent trading desks have warned that investors should prepare for a possible break from the calm in stocks. JPMorgan Chase’s Andrew Tyler said the options market expects the S&P 500 to move 1% in either direction following Wednesday’s CPI. A New York Fed survey on Monday highlighted rising inflation expectations.
“The main risk is an increase in the CPI,” Tyler said. “However, the coming macro data presents two-sided risks: one is that stronger-than-expected growth fuels inflation concerns, and the other is that slower growth fuels fears of recession or ‘stagflation.'”
Australia’s finance minister, Jim Chalmers, is also expected to announce on Tuesday that the government’s accounts have been in surplus for the second year in a row, putting the country in a position near the top of the developed world.
In terms of corporate news, market watchers will also be looking at the next steps in BHP Group’s takeover battle. This comes after a second approach by rival Anglo American, which valued the mining company at $43 billion, was rejected.
In commodities, crude oil continued to rise ahead of the Organization of the Petroleum Exporting Countries (OPEC)’s market outlook, with traders looking for clues as to whether supply constraints will be extended, as well as a U.S. shift that could shape expectations for monetary policy. I want inflation statistics.
This week’s main events:
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German CPI, ZEW survey forecast, Tuesday
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Bank of England economist Hugh Pill speaks on Tuesday
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US PPI, Tuesday
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Fed Chairman Jerome Powell and ECB Governing Council member Claes Knott speak on Tuesday
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China interest rate decision Wednesday
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Eurozone industrial production, GDP, Wednesday
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US CPI, Retail Sales, Business Inventories, Imperial Manufacturing, Wednesday
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Minneapolis Fed President Neel Kashkari speaks Wednesday
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Japan’s GDP, industrial production, Thursday
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U.S. housing starts, new unemployment insurance claims, industrial production, Thursday
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Philadelphia Fed President Patrick Harker speaks Thursday
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Cleveland Fed President Loretta Mester speaks Thursday
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Atlanta Fed President Rafael Bostic speaks Thursday
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China real estate prices, retail sales, industrial production, Friday
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Eurozone CPI, Friday
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US Conference Board Leading Index, Friday
The main movements in the market are:
stock
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S&P 500 futures were little changed as of 11:37 a.m. Tokyo time.
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Nasdaq 100 futures fell 0.1%.
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Japan’s Topix remains almost unchanged.
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Australia’s S&P/ASX 200 falls 0.3%
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Hong Kong’s Hang Seng hasn’t changed much.
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The Shanghai Composite fell 0.2%.
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Euro Stoxx50 futures little changed
currency
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Bloomberg Dollar Spot Index little changed
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The euro was almost unchanged at $1.0785.
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The Japanese yen fell 0.2% to 156.46 yen to the dollar.
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The offshore yuan was little changed at 7.2425 yuan to the dollar.
cryptocurrency
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Bitcoin fell 0.9% to $62,511.13.
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Ether remains almost unchanged at $2,951.76
bond
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The 10-year government bond yield was almost unchanged at 4.48%.
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Japan’s 10-year bond yield rose 2.5 basis points to 0.965%.
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Australian 10-year bond yield unchanged at 4.33%
merchandise
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West Texas Intermediate crude oil is little changed.
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Spot gold rose 0.3% to $2,342.73 an ounce.
This article was produced in partnership with Bloomberg Automation.
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