· Asian stocks recover on firmer futures, retreat in U.S. yields
Asian stocks recovered from earlier losses on Tuesday, lifted by firmer U.S. equity futures and central bank comments aimed at soothing fears about rising bond yields and inflation.
A pullback in U.S. bond yields also buoyed equity markets.
Japan’s Nikkei rallied 1.02% on Tuesday afternoon, while MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.10% higher.
NASDAQ futures bounced 1.1% and S&P 500 futures 0.73%. European futures were slightly lower, however, with EUROSTOXX 50 futures down 0.13% and FTSE futures 0.25% lower.
· Japan stocks end higher on hopes of economic rebound
Japanese shares ended higher on Tuesday as investors bought consumer goods companies and property developers on expectations that they would benefit from an economic recovery from the COVID-19 pandemic.
The Nikkei 225 Index climbed 0.99% to 29,027.94. The broader Topix rose 1.27% to 1,917.68.
Consumer cyclicals and property firms underpinned the gains, driven by optimism that the sectors would perform better as a recovery in the domestic economy gathers pace.
Technology shares fell in early trade as some investors booked profits before the close of the fiscal year on March 31, but the sector reversed course to end higher in a sign that overall sentiment remains positive.
· China shares slump in volatile trade; Shanghai index on brink of correction
China’s benchmark stock index stood on the precipice of a correction on Tuesday and blue-chip shares slumped to a 12-week low as investors fretted over the prospect of policy tightening despite a slowing economic recovery.
The sell-off in Chinese shares echoes a selling in global equities in conjunction with rising bond yields and fear that inflation will force central banks to withdraw from accommodative policies earlier than expected.
The Shanghai Composite index was down 1.82% to 3,359.29 at the end of a session that saw it flirt with small gains. It is now down 9.98% from a multi-year high touched on Feb. 18, just shy of the 10% drop typically defined as a correction.
The blue-chip CSI300 index, which fell into a correction last week, erased a small midday rise to slump further. It touched its lowest point since Dec. 15 before closing down 2.15% at 4,971.00.
· China's tech wreck continues; copper also weakens
The bubble in Chinese tech stocks continued to deflate overnight, with the Shanghai Shenzhen CSI 300 falling over 3% as the implication of the Communist Party’s relatively low growth target for 2021 sank in. The country’s main tech index fell below its 100-day moving average in the process.
China’s government had indicated a growth target of around 6% on Friday after its annual agenda-setting National People’s Council. That was well below the prevalent 8% forecasts and implies a significant withdrawal of stimulus this year to rein in perceived excess leverage. China’s banking regulator warned of bubbles in global financial markets last week, in what was taken as coded warning about overvaluation of assets at home too.
There were also signs of weakness in other China-driven markets overnight, with copper futures falling around 1%, despite data showing a strong performance by both imports and exports in the first two months of the year.
· European markets mixed as caution returns after Monday’s rally
European stocks were mixed Tuesday morning, struggling to extend a rally in the previous session that saw Germany’s DAX rise 3.3% and hit a new intraday high.
The pan-European Stoxx 600 hovered either side of the flatline in early trade, with basic resources shedding 1.4% while oil and gas stocks gained 1.5%.
Reference: CNBC, Reuters, Investing
Thai
Eng