Business & Investment

Asia gets off to a cautious start, paying attention to China’s data Reuters

© Reuters. File Photo: Investors are looking at an electronic board displaying stock information at a Beijing brokerage firm on August 27, 2015. REUTERS / Jason Lee / File Photo

Wayne Cole

Sydney (Reuters)-Asia’s stock market is competing in much of the world to stop the spread of delta variants of COVID, ahead of a pile of Chinese data that could confirm a huge economic slowdown on Monday A cautious start to the week-19 vaccinations.

Retail sales, industrial production and urban investment figures are projected to indicate a gradual decline in activity in China in July. This trend can be exacerbated by recent tightening of coronavirus regulations.

There were some uncertainties about the potential geopolitical consequences of the sudden collapse of the Afghan government and what it meant for political stability in the region.

Bruce Kasman, an economist at JP Morgan (NYSE :), said, “Low vaccination rates in Asia and low resistance to community transmission make Asia the most economically risky from Delta variants. It suggests that the area is being infected. “

“China is in the process of abolishing policy support, which is likely to curb growth in domestic demand and weigh on regional performance for the rest of the year,” he added. “The increase in these drugs over the last few weeks has lowered our regional growth forecast for the second half of 2009.”

MSCI’s widest non-Japanese Asia-Pacific stock index hit a low last month and was flat in early trading.

Economic growth was lower than expected in the June quarter, but fell 1.2%.

Nasdaq futures both fell 0.1% in early Asian action.

Wall Street maintained a fresh record last week, despite showing that US consumer sentiment shocks had fallen to its lowest since 2011 in Delta’s concerns.

The disastrous report dropped 10-year Treasury yields by 8 basis points to 1.28% on Friday, eradicating the steady rise in the week. [US/]

It also wiped out the weekly profits for the dollar and sent it back to a basket of currencies from the top of 93.195 for almost five months to 92.517.

The euro bounced back to $ 1.1797, moving away from support on the main charts to $ 1.1740, but the dollar rebounded from a peak of 110.79 to 109.51.

Kim Mandy, CBA’s senior currency strategist, argued that the dollar could rise this week if the minutes of the Fed’s last policy meeting confirmed a tapering hawkish change. ..

Minutes are out on Wednesday, while Federal Reserve Board Chairman Jerome Powell speaks on Tuesday.

“The FOMC expects to announce in September that it will reduce its monthly asset purchases if its salary is high in August,” Mandy said.

“We have determined that next month’s tapering announcement is not widely expected, so the dollar is expected to skyrocket if the minutes show that the FOMC has discussed the possibility of a tapering announcement in September. “.

In the commodity market, gold expanded its bounce to $ 1,779 after a sudden stop loss fell to $ 1,684 earlier last week. [GOL/]

Especially in China, there were concerns that travel restrictions on the coronavirus would hurt demand, and oil prices fell in early transactions. [O/R]

It fell 28 cents to $ 70.31 a barrel and fell 31 cents to $ 68.13.

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Asia gets off to a cautious start, paying attention to China’s data Reuters Asia gets off to a cautious start, paying attention to China’s data Reuters

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