Asian shares rise despite Chinese property slump
Published: 01:11 PM,Nov 09,2023 | EDITED : 05:11 PM,Nov 09,2023
A screen showing the Hang Seng stock index is seen outside Exchange Square, in Hong Kong.__Reuters
SYDNEY: Asian share markets rallied on Thursday and the dollar firmed, even as global investors again sold off the troubled mainland Chinese property sector.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1 per cent, and is up 4.3 per cent so far this month.
The yield on benchmark 10-year Treasury notes reached 4.4902 per cent compared with their US close of 4.508 per cent on Wednesday.
The two-year yield, which rises with traders' expectations of higher Fed fund rates, touched 4.9277 per cent compared with a US close of 4.936 per cent.
Australian shares were up 0.26 per cent, while Japan's Nikkei stock index rose 1.53 per cent.
Hong Kong's Hang Seng Index reversed an early gain and was down 0.25 per cent in the afternoon while China's bluechip CSI300 Index was 0.1 per cent higher.
China's troubled property sector is being closely watched on Thursday after most major stocks rallied one day earlier following a Reuters report that Ping An Insurance Group had been asked by the Chinese authorities to take a controlling stake in Country Garden Holdings .
A spokesperson for Ping An said the company had not been approached by the government and denied the Reuters report that cited four sources familiar with the plan.
The Hang Seng Mainland Properties Index shed 3.73 per cent on Thursday and the Hang Seng Properties Index, which covers Hong Kong developers, was down 0.7 per cent.
'I think for equities investors, they are still shying away from Chinese property because there are so many unknowns,' said Jason Lui, BNP Paribas's Head of APAC Equity & Derivative Strategy.
'It's difficult to ask investors to go back to pre-property downturn days, fundamentally property is going to play a very different role in Chinese economic development going forward.
'Property needs to stop being a drag on GDP and sentiment so investors can move on to the real growth drivers.'
In early European trades, the pan-region Euro Stoxx 50 futures were up 0.1 per cent, German DAX futures were down 0.05 per cent, FTSE futures were down 0.16 per cent at 7,401.5,
US stock futures, the S&P 500 e-minis, were down 0.06 per cent at 4,396.8.
Chinese inflation figures for October published on Thursday showed a 0.1 per cent decline compared to September and a 0.2 per cent fall from one year, according to official statistics.
The dollar dropped 0.03 per cent against the yen to 150.93 . It is moving back towards its high this year of 151.74 on Oct. 31.
The European single currency was up 0.0 per cent on the day at $1.0708, having gained 1.25 per cent in a month, while the dollar index, which tracks the greenback against a basket of currencies of other major trading partners, was up at 105.51.
The dollar has rebounded from last week's sharp sell-off on rising confidence the Fed has ended raising rates. There is less agreement on whether a rate cut is on the horizon with inflation still above the US Federal Reserve's 2 per cent target.
On Wall Street, the S&P 500 rose 0.10 per cent and the Nasdaq Composite added 0.08 per cent. The Dow Jones Industrial Average fell 0.12 per cent.
The S&P 500 rose for the eighth consecutive day, extending its longest win streak in two years.
The Federal Reserve last week kept the benchmark overnight interest rate in the current 5.25 per cent-5.50 per cent range and the central bank is due to meet again mid next month.
The U.S weekly jobless claims published on Thursday will be closely watched as an indicator of the how the country's labour market is performing. Economists predict claims will reach 219,000 after coming in at 217,000 last week.
Oil prices slid over 2 per cent on Wednesday to their lowest in more than three months on concerns over waning demand in the US and China.
In Asian trading Thursday, US crude ticked up 0.15 per cent to $75.44 a barrel. Brent crude rose to $79.68 per barrel.
Gold was slightly lower. Spot gold was traded at $1948.9332 per ounce.__Reuters
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1 per cent, and is up 4.3 per cent so far this month.
The yield on benchmark 10-year Treasury notes reached 4.4902 per cent compared with their US close of 4.508 per cent on Wednesday.
The two-year yield, which rises with traders' expectations of higher Fed fund rates, touched 4.9277 per cent compared with a US close of 4.936 per cent.
Australian shares were up 0.26 per cent, while Japan's Nikkei stock index rose 1.53 per cent.
Hong Kong's Hang Seng Index reversed an early gain and was down 0.25 per cent in the afternoon while China's bluechip CSI300 Index was 0.1 per cent higher.
China's troubled property sector is being closely watched on Thursday after most major stocks rallied one day earlier following a Reuters report that Ping An Insurance Group had been asked by the Chinese authorities to take a controlling stake in Country Garden Holdings .
A spokesperson for Ping An said the company had not been approached by the government and denied the Reuters report that cited four sources familiar with the plan.
The Hang Seng Mainland Properties Index shed 3.73 per cent on Thursday and the Hang Seng Properties Index, which covers Hong Kong developers, was down 0.7 per cent.
'I think for equities investors, they are still shying away from Chinese property because there are so many unknowns,' said Jason Lui, BNP Paribas's Head of APAC Equity & Derivative Strategy.
'It's difficult to ask investors to go back to pre-property downturn days, fundamentally property is going to play a very different role in Chinese economic development going forward.
'Property needs to stop being a drag on GDP and sentiment so investors can move on to the real growth drivers.'
In early European trades, the pan-region Euro Stoxx 50 futures were up 0.1 per cent, German DAX futures were down 0.05 per cent, FTSE futures were down 0.16 per cent at 7,401.5,
US stock futures, the S&P 500 e-minis, were down 0.06 per cent at 4,396.8.
Chinese inflation figures for October published on Thursday showed a 0.1 per cent decline compared to September and a 0.2 per cent fall from one year, according to official statistics.
The dollar dropped 0.03 per cent against the yen to 150.93 . It is moving back towards its high this year of 151.74 on Oct. 31.
The European single currency was up 0.0 per cent on the day at $1.0708, having gained 1.25 per cent in a month, while the dollar index, which tracks the greenback against a basket of currencies of other major trading partners, was up at 105.51.
The dollar has rebounded from last week's sharp sell-off on rising confidence the Fed has ended raising rates. There is less agreement on whether a rate cut is on the horizon with inflation still above the US Federal Reserve's 2 per cent target.
On Wall Street, the S&P 500 rose 0.10 per cent and the Nasdaq Composite added 0.08 per cent. The Dow Jones Industrial Average fell 0.12 per cent.
The S&P 500 rose for the eighth consecutive day, extending its longest win streak in two years.
The Federal Reserve last week kept the benchmark overnight interest rate in the current 5.25 per cent-5.50 per cent range and the central bank is due to meet again mid next month.
The U.S weekly jobless claims published on Thursday will be closely watched as an indicator of the how the country's labour market is performing. Economists predict claims will reach 219,000 after coming in at 217,000 last week.
Oil prices slid over 2 per cent on Wednesday to their lowest in more than three months on concerns over waning demand in the US and China.
In Asian trading Thursday, US crude ticked up 0.15 per cent to $75.44 a barrel. Brent crude rose to $79.68 per barrel.
Gold was slightly lower. Spot gold was traded at $1948.9332 per ounce.__Reuters