Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

Marketmind: China news flow turns into torrent

Published Nov 12, 2023 04:47PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A panel displays the Hang Seng Index during afternoon trading, in Hong Kong, China May 4, 2020. REUTERS/Tyrone Siu/File Photo
 
C
+0.20%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GS
-0.29%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
MUFG
+1.56%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
MFG
+1.33%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
MSCIEF
+0.37%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TCEHY
+0.94%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Jamie McGeever

(Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist.

Asian markets should get the week off to a blistering start on Monday, propelled higher by Wall Street's powerful rally on Friday that saw the Nasdaq rise more than 2% for its best day since May.

It is a big week for China watchers with a U.S.-Sino Presidential meeting, a raft of top-tier economic data and several blue chip corporate earnings releases all on the docket over the next five days.

Other economic and policy highlights across the continent this week include preliminary Japanese third-quarter GDP, Indian inflation, and a policy decision from the Philippine central bank on Thursday.

There is certainly room for upside potential for Asian markets after the MSCI Asia & Pacific equity index ex-Japan fell 0.5% last week, underperforming the broader MSCI Emerging Market index, which ended the week flat.

Financial conditions are broadly easing too, according to Goldman Sachs's financial conditions indices (FCI). Some, like the China and aggregate emerging market indexes, last week fell to their lowest in three months.

Perhaps the most interesting of all Goldman's FCIs is its Japanese index. On Friday it fell to 96.78, matching the lows struck on July 3 and 4. Remarkably, that is the lowest since March 1990.

By this measure, financial conditions in Japan are the loosest in almost 34 years - that's the combined effect of the yen's weakness, the stock market's recent 33-year highs, negative interest rates, and deeply negative real bond yields.

In theory, that is inflationary and should be boosting growth. Inflation is relatively sticky - the Bank of Japan is inching away from its ultra-loose policy - but economic activity is not meeting analysts' expectations.

Citi's economic surprises index for Japan turned negative last week and is now the lowest since June. On the Japanese corporate front this week, meanwhile, big firms reporting earnings include financials Mizuho, Mitsubishi UFJ (NYSE:MUFG) and Sumitomo.

The Chinese news flow this week is potentially huge.

On the political front, U.S. President Joe Biden and Chinese President Xi Jinping meet face to face this week at the Nov. 15-17 Asia-Pacific Economic Cooperation (APEC) gathering of leaders in San Francisco.

The economic data pipeline is full of top-tier releases too. They include money supply, lending and 'total social financing' - basically a broad measure of credit and liquidity in the economy - while on Wednesday markets will digest October's retail sales, industrial production and unemployment figures.

Some of China's biggest companies are scheduled to report their latest earnings this week. They include JD (NASDAQ:JD).com, Tencent Holdings (OTC:TCEHY), Alibaba (NYSE:BABA) Group and Lenovo.

Where do Chinese equities stand ahead of all that?

The blue chip CSI 300 index last week rose 0.066% - barely in positive territory, but enough to make it three weeks in a row of gains, its best run since March. That said, the index still failed in these three weeks to claw back the 4.1% losses from the week ending Oct. 20.

Here are key developments that could provide more direction to markets on Monday:

- India CPI inflation (October)

- APEC finance ministers meet in San Francisco

- Japan corporate goods prices (October)

(By Jamie McGeever; Editing by Diane Craft)

Marketmind: China news flow turns into torrent
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Hunt Richardson
Hunt Richardson Nov 12, 2023 8:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
who believes what Chayna reports?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email