· Asia stocks try tentative rally, Fed in no rush to taper
Asian shares managed a modest bounce on Thursday as the U.S. Federal Reserve signalled it was in no rush to taper stimulus, though the mood was fragile as investors waited to see if Beijing could stem the recent rout in Chinese shares.
There was also some promising news on the long-awaited U.S. infrastructure bill as the Senate voted to move ahead on the $1.2 trillion deal.
China’s markets edged higher amid reports regulators had called banks overnight to ease concerns about tighter rules on the education sector and on overseas listings.
For now, gains were tentative with blue-chip shares up 1.6%, but still down 5% for the week so far
MSCI’s broadest index of Asia-Pacific shares outside Japan bounced 1.9%, having slid to its lowest since early December on Wednesday.
· Japanese shares gain on upbeat earnings, benign Fed
Japanese shares edged up on Thursday as Nissan Motor and some semiconductor-related firms reported surprisingly strong earnings, while the U.S. Federal Reserve indicated it was in no hurry to withdraw monetary policy support.
Nikkei share average gained 0.36% to 27,677.24 while the broader Topix added 0.17% to 1,922.91, bouncing back from Wednesday’s fall.
Fed Chair Jerome Powell said the U.S. job market still had “some ground to cover” before it would be time to pull back from its economic support, underpinning the market.
· China, Hong Kong stocks rebound sharply as govt calms nerves
China and Hong Kong stocks rebounded sharply in early trade on Thursday, led by tech shares, after the Chinese government moved to sooth investor panic over mounting regulatory risks.
The CSI300 index rose 1.2% to 4,818.78 points at 0139 GMT, while the Shanghai Composite Index gained 1.0% to 3,394.74 points.
The Hang Seng index in Hong Kong was up 1.8%, to 25,925.07 points. The Hang Seng Tech Index jumped over 4%.
Global investors had dumped shares in Chinese companies after China published rules over the weekend that ban for-profit tutoring in core school subjects. Beijing has also launched an anti-monopoly campaign against tech giants.
China’s recent policy tightening against the tutoring industry and Internet platforms is good for long-term development of the country, and China remains committed to opening up its capital markets, the official Xinhua News Agency said late on Wednesday.
· Shares of Singapore’s top banks jump after regulator lifts cap on dividend payouts
Shares of Singapore’s top three banks rose Thursday after the country’s financial regulator lifted a cap on dividend payouts that was implemented following the Covid-19 pandemic.
Singapore’s largest bank DBS Group Holdings climbed around 0.6% in early trade, while smaller peers Oversea-Chinese Banking Corp and United Overseas Bank were up by around 1%.
The three banks make up around one-third of the benchmark Straits Times Index, which rose 0.5%.
· European markets inch higher as investors digest earnings, Fed decision
The pan-European Stoxx 600 gained 0.3% in early trade, with oil and gas stocks jumping 1.7% while food and beverages slid 1.2%.
· London's FTSE 100 rises on robust earnings, dividends
London’s FTSE 100 gained on Thursday, as encouraging earnings and huge dividend payouts from some of UK’s biggest corporates outweighed worries around rising inflation and COVID-19 cases.
The blue-chip index rose 0.4%, led by oil major Royal Dutch Shell, miner Anglo American, and pest control company Rentokil Initial.
· Ratings agencies downgrade China Evergrande as concerns over junk bonds rise
Major credit ratings agencies this week downgraded China’s most indebted property developer Evergrande, as concerns over Asia’s junk bond sector rise.
Fitch Ratings on Wednesday downgraded China Evergrande one notch from B to CCC, saying that the negative developments surrounding Evergrande may weaken investor confidence, further pressuring its liquidity.
Reference: CNBC, Reuters
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