Business & Investment

Asian stocks are strong, dollar weakening as traders wait for earnings

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Hong Kong-Asia stocks started steadily on Monday prior to a week full of major quarterly earnings announcements, but the dollar fell in October after three weeks of risk-friendly sentiment hurt a safe currency. It remained near the low price.

Both HSBC and Facebook will announce quarterly financial results on Monday, trading in Asia and late in the United States, respectively.

Later in the week, it will be the turn of technology giants Microsoft, Apple, Alphabet, and other benchmark tycoons, including Deutsche Bank and Lloyds to China Construction Bank and Nomura, European and Asian financial giants. ..

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“This week’s earnings will be a central stage,” said Chris Weston, head of research at Melbourne securities firm Pepperstone, in a morning note.

Nasdaq was disappointed with the quarterly results of Snap and Intel Corporation on Friday.

MSCI’s widest non-Japanese Asia-Pacific stock index has also recorded a rise in the last three weeks, and if it can be maintained this week, October will be the highest month of the 2022 benchmark.

Regional benchmarks were flat on Monday morning, rising 0.5% in Australia and down 0.6% in South Korea.

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Japan’s Nikkei Stock Average fell 1% and US S & P 500 futures fell 0.18%.

Asian equities have fallen far behind US and European equities in recent months, primarily due to regulatory criticism and concerns over slowing growth in China.

In a recent announcement worried by some investors, the highest decision-making body of the Chinese parliament said it would roll out pilot real estate taxes in some areas on Saturday.

Citi analysts summarized the announcement as “earlier than expected, but slower than expected nationwide.” There is no catastrophic effect. “

But as with the rise in energy prices that supported currencies such as the Australian and Canadian dollars, the risk-friendly mood that supported equities weighs heavily on safe currencies.

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The dollar index lasted at 93.667, hovering near the monthly lows of 93.455 hits last week, well below the 12-month highs in mid-October.

However, CBA analysts said the dollar was more likely to rise than it would fall from here.

“The dollar’s risk is still on the rise,” citing rising inflation expectations from markets, consumers and policy makers. This means that the market is pricing more aggressive rate hike programs to support the dollar.

The market is widely expected to shrink its US stimulus package this year and is recognizing that rate hikes could occur in the second half of 2022.

Federal Reserve Board Chair Jerome Powell said Friday that the process of reducing support for the economy by cutting asset purchases should begin, but interest rates should not be touched yet.

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Benchmark yields in the United States are rising as the taper approaches, with 10-year Treasury bonds reaching a record high of 1.7064% in the last five months. In early Asia, they were the last 1.6465%.

Oil prices continued to rise, but were slightly below their peaks in recent years. Brent crude> LCOc1> rose 0.13% to $ 85.65 a barrel and US crude rose 0.38% to $ 84.08 a barrel.

Spot gold rose 0.06% to $ 1793.4 an ounce after recording a rise over the past two weeks due to rising inflation concerns.

Another Bitcoin asset, often referred to as an inflation hedge, was finally $ 61,080 after a turbulent week hit a new high of $ 67,016.

(Edited by Stephen Coates)

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Asian stocks are strong, dollar weakening as traders wait for earnings

https://financialpost.com/pmn/business-pmn/asian-shares-steady-dollar-weak-as-traders-await-earnings Asian stocks are strong, dollar weakening as traders wait for earnings

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