· Shares falter as tech skids, yields and oil ring inflation alarm
Share markets turned mixed on Monday as the U.S. Senate passage of a $1.9 trillion stimulus bill augured well for faster global economic growth, but also put fresh pressure on Treasuries and tech stocks with lofty valuations.
The upbeat economic news continued as China’s exports surged 155% in February compared with a year earlier when much of the economy shut down to fight the coronavirus.
However, analysts also expected a sharp acceleration in inflation, stoked in part by the latest spike in oil prices, which was pushing up bond yields and stretching equity valuations, particularly in the high tech space.
That saw Nasdaq futures reverse early gains to slip 1.0%, dragging S&P 500 futures down 0.2%.
MSCI’s broadest index of Asia-Pacific shares outside Japan followed with a fall of 0.5%, while Chinese blue chips shed 0.9%.
· StanChart still prefers China equities and dollar denominated Asian bonds
Manpreet Gill of Standard Chartered discusses his preferred investment areas following Chinese Premier Li Keqiang’s working report at the NPC.
· Chinese app Meitu buys $40 million worth of bitcoin and ethereum
Meitu, a Chinese company that makes a photo editing app, has purchased bitcoin and ether, becoming the latest firm to buy cryptocurrencies.
The Hong Kong-listed company said on Sunday it bought $22.1 million worth of ether and $17.9 million worth of bitcoin on March 5.
Meitu follows the likes of electric car company Tesla and Square in purchasing bitcoin. But the Chinese appmaker appears to be the first major company to buy ether, a cryptocurrency that works on the ethereum blockchain.
· China blue-chip index falls most in over 7 months on policy tightening fears
China stocks fell the most in more than seven months on Monday, as a lower-than-expected 2021 economic growth target from Beijing sparked concerns that Chinese officials could tighten policy to rein in lofty valuations.
The blue-chip CSI300 index fell 3.5% to 5,080.02, posting its worst day since July 24, 2020. The Shanghai Composite Index lost 2.3% to 3,421.41.
· Japanese shares end lower on year-end positioning, rising U.S. yields
Japanese shares reversed course to end lower on Monday as some investors adjusted positions ahead of the end of the fiscal year, while concerns over rising U.S. bond yields also weighed on sentiment.
The Nikkei share average fell 0.42% to close at 28,743.25, while the broader Topix edged down 0.14% to 1,893.58.
Japanese shares made a strong start to 2021, with the Nikkei touching 30,000 level for the first time in 30 years last month on optimism over COVID-19 vaccine rollouts and an economic recovery.
However, domestic equities have weakened in the past few sessions as rising bond yields globally sparked fears that central banks would tighten policy.
· European stocks open higher with progress of U.S. stimulus package in focus
European stocks opened higher Monday, buoyed by positive U.S. sentiment as the U.S.′ Covid relief bill is expected to be approved by the House of Representatives later this week.
The pan-European Stoxx 600 climbed 0.6% in early trade, with banks adding 1.4% to lead gains as almost all sectors and major bourses advanced. Utilities slid 0.6% lower.
Reference: CNBC, Reuters
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