(Bloomberg) — Asian shares rose after China took steps to support its real estate market and U.S. stocks climbed to a new record Friday on resilient corporate earnings.
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The MSCI AC Asia Pacific Index advanced for a seventh session, with figures in China, Hong Kong, Australia and Japan all moving higher. Chinese banks left their key interest rates unchanged, as economists predict.
The world’s second-largest economy is shaping up trading on Monday after Beijing’s bid to shore up the country’s property market hampered growth momentum even as concerns remain that the measures may be too small. Metals including gold rose, while copper rose to a new record, anticipating supply shortages.
“We believe the policy package is just the beginning of the central government’s efforts to transform the sector,” Nomura Holdings Inc. analysts wrote. in a research note. “We believe that the rapid introduction of the policy package with arguably limited implementation details also implies the central government’s increasing urgency to alleviate the real estate sector’s downward spiral.”
Investors are also keeping an eye on the Middle East after a helicopter carrying Iranian President Ebrahim Raisi crashed in dense fog. Oil fell in early trading in Asia.
Bloomberg’s dollar index was little changed after falling last week as traders refined their bets on the Federal Reserve’s outlook after inflation eased more than economists expected in April. This week, a chorus of Fed officials will speak, including Governor Christopher Waller, who will speak specifically about the US economy and monetary policy.
“We continue to expect the Fed to cut rates by 50 basis points this year, with further cuts in 2025 and 2026,” said Solita Marcelli, Chief Investment Officer Americas at UBS Global Wealth Management. “This creates a favorable macro environment that supports our investment recommendation for quality bonds and quality equities.”
Developments in the Middle East have the potential to shape trade. Rescue teams in Iran searched late into the night to locate President Raisi, who is seen as a favorite to eventually succeed Supreme Leader Ayatollah Ali Khamenei, the Islamic Republic’s highest authority.
According to the state-run Saudi Press Agency, Saudi King Salman bin Abdulaziz will be treated for a lung condition. King Salman has led the world’s largest oil exporter since 2015. His son, Crown Prince Mohammed bin Salman, handles most day-to-day affairs in Saudi Arabia.
This week’s agenda includes measures of economic activity in Europe, as well as inflation figures in Britain, Canada and Japan. Policy decisions in New Zealand, Indonesia, South Korea and Chile are also in the pipeline, while Nvidia Corp. will report profits.
Some important events this week:
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Prime rates for Chinese loans, Monday
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Thailand’s GDP, Monday
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BOE Deputy Governor Ben Broadbent will speak on Monday about monetary policy transmission
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Chile’s GDP, Monday
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Reserve Bank of Australia will release the minutes of its May policy meeting on Tuesday
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CPI Canada, Tuesday
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Fed Governor Christopher Waller will speak on Tuesday about the US economy and monetary policy
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BOE Governor Andrew Bailey will give a lecture on Tuesday
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New Zealand interest rate decision, Wednesday
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Indonesia tariff decision, Wednesday
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CPI South Africa, Wednesday
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British CPI, Wednesday
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FOMC minutes from April 30-May 1 policy meeting, Wednesday
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Singapore CPI, GDP, Thursday
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South Korea interest rate decision on Thursday
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India S&P Global Manufacturing & Services PMI, Thursday
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Eurozone S&P Global Services PMI, S&P Global Manufacturing PMI, consumer confidence, Thursday
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US new home sales, first jobless claims, Thursday
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Chile tariff decision, Thursday
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Japanese CPI, Friday
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Germany GDP, Friday
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Malaysia CPI, Friday
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U.S. Durable Goods, University of Michigan Consumer Confidence, Friday
Some of the major moves in the markets:
Shares
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S&P 500 futures rose 0.1% as of 10:18 a.m. Tokyo time
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Nikkei 225 futures (OSE) rose 1.3%
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Japan’s Topix rose 1.2%
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Australia’s S&P/ASX 200 rose 0.7%
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Hong Kong’s Hang Seng rose 0.9%
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The Shanghai Composite rose 1%
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Euro Stoxx 50 futures rose 0.3%
Currencies
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The Bloomberg Dollar Spot Index was little changed
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The euro was little changed at $1.0874
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The Japanese yen fell 0.1% to 155.82 per dollar
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The offshore yuan was little changed at 7.2345 per dollar
Cryptocurrencies
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Bitcoin rose 0.3% to $66,341.51
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Ether fell 0.3% to $3,066.51
Bonds
Raw materials
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West Texas Intermediate crude fell 0.1% to $79.95 a barrel
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Spot gold rose 0.6% to $2,429.90 an ounce
This story was produced with the help of Bloomberg Automation.
–With assistance from Richard Henderson.
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