Asian Stocks Mixed After China GDP; Yen Falls:
- Equity markets post gains in Japan, declines in Australia
- Global shares trade flat after best start to year since 1988
Stocks in Asia were mixed Tuesday, with most benchmark indexes in a tight range following the release of China’s latest growth data.
Japan’s shares rose, ending a two-day losing streak, while equities fell in South Korea and Australia. Contracts for the S&P 500 fell, with US markets shut Monday. A gauge of global equities traded flat in a sign the rally that’s pushed it to the best start to a year since 1988 has stalled.
Stocks trading in Hong Kong and mainland China remained in the red after China’s economy last year grew at the second slowest pace since the 1970s as Covid restrictions hammered activity. But better-than-forecast fourth quarter and December data add to optimism it may be primed for a recovery.
Among those bullish on the recovery are Goldman Sachs Group Inc. and UBS Group AG as the resumption of activity in China promises to unleash over $836 billion of excess savings, and may help ease fears of a global downturn as other central banks continue to tighten policy. A plan by Chinese financial regulators and the nation’s biggest bad-debt management companies to offer support to high-quality developers may shore up positive sentiment as well.
The yen fell 0.2% against the dollar, as traders weighed the prospects of a possible change in policy by the Bank of Japan on Wednesday. The nation’s 10-year yield climbed above the central bank’s ceiling for a third day as traders added to wagers that it will adjust its yield-curve control policy. The dollar was little changed while Treasury yields climbed across the tenors.
Key events this week:
- Earnings to include: Charles Schwab, Discover Financial, Goldman Sachs, Interactive Brokers, Investor AB, Morgan Stanley, Netflix, Procter & Gamble, Prologis, State Street
- US Empire State manufacturing survey, Tuesday
- Fed’s John Williams to speak, Tuesday
- Eurozone CPI, Wednesday
- US retail sales, PPI, industrial production, business inventories, MBA mortgage applications, cross-border investment, Wednesday
- Bank of Japan rate decision, Wednesday
- Federal Reserve releases Beige Book, Wednesday
- Fed speakers include Raphael Bostic, Lorie Logan and Patrick Harker, Wednesday
- US housing starts, initial jobless claims, Philadelphia Fed index, Thursday
- ECB account of its December policy meeting and President Christine Lagarde on a panel in Davos, Thursday
- Fed speakers include Susan Collins and John Williams, Thursday
- Japan CPI, Friday
- China loan prime rates, Friday
- US existing home sales, Friday
- IMF’s Kristalina Georgieva and ECB’s Lagarde speak in Davos, Friday