· Credit Suisse takes $4.7 billion hit from Archegos hedge fund scandal; execs step down
· Airline stocks in Asia-Pacific boosted by Australia-New Zealand travel bubble, rising optimism
Shares of Australia’s Qantas Airways surged 3.14% on Tuesday while Air New Zealand’s stock soared 5.8%.
· Asia-Pacific stocks mixed; RBA holds steady on policy
Shares in Asia-Pacific were mixed on Tuesday, after major indexes on Wall Street surged to record closing highs overnight stateside.
The Nikkei 225 in Japan slipped 1.3% to close at 29,696.63 while the Topix index dropped 1.47% to finish its trading day at 1,954.34.
Nikkei has declined after the opening gain, moved back below 30K [Topix Marine Transportation, Banks and Air Transport indices are among the decliners; Softbank Group drops after prior gain].
South Korea’s Kospi closed 0.2% higher at 3,127.08.
Chinese A-share markets open high following strong tourism recovery
Major stock indexes in mainland Chinese stocks were lower on the day, with the Shanghai composite slipping slightly to 3,482.97 while the Shenzhen component shed 0.278% to 14,083.34.
China’s services sector activity grew in March, according to a private sector survey released Tuesday. The Caixin/Markit services Purchasing Managers’ Index for March came in at 54.3, as compared to February’s reading of 51.5.
In Australia, the S&P/ASX 200 advanced 0.84% to close at 6,885.90. The Reserve Bank of Australia on Tuesday announced its decision to maintain its policy settings. That included keeping its cash rate at 0.1%, largely in line with expectations of analysts in a Reuters poll.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.33%.
Markets in Hong Kong were closed on Tuesday for a holiday.
· European markets gain on recovery hopes; Credit Suisse cuts dividend
European markets advanced on Tuesday as trading resumes after the Easter holiday, with global sentiment boosted by positive economic data in the U.S. and China.
The pan-European Stoxx 600 gained 0.6% in early trade, with basic resources adding 2% to lead gains as all sectors except telecoms entered positive territory.
European stocks are bucking the trend seen in Asia-Pacific during Tuesday’s session, where markets were mixed despite China’s services sector activity growing in March, according to a private sector survey.
The big news out of Europe Tuesday was the announcement by Credit Suisse of several high-level staff departures and cuts to its dividends and bonuses. The Swiss bank announced it was taking a $4.7 billion hit as a result of the Archegos Capital Management saga. The Swiss lender now expects a first-quarter pre-tax loss of around 900 million Swiss francs ($960.4 million).
On the data front, investors will have an eye on February’s euro zone unemployment rate, set for publication at 10 a.m. London time. Meanwhile the IMF releases its World Economic Outlook and Global Financial Stability Report on Tuesday.
· France to become biggest Air France shareholder with capital hike
Reference: CNBC, Global Times, Action Forex
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