Asian Stocks Rise as Traders Prepare for Central Bank Decisions

Updated on
  • Chinese equities rise as concerns over U.S. relations ease
  • Investors await policy meetings in U.S., Japan, U.K.

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Traders pushed Asian stocks higher as they positioned for a raft of central bank meetings this week. Chinese equities led the region amid easing concern over U.S.-China political tensions.

The MSCI Asia Pacific Index rose 0.8 percent to 145.46 as of 5:20 p.m. in Hong Kong, its biggest gain in almost a month. Crude oil extended its decline below $50 per barrel.

Data last week showed U.S. employers added jobs at an above-average pace and traders are now pricing in greater odds for more interest-rate hikes this year. The Federal Reserve’s rate decision is due Wednesday in Washington during a week when policy makers in Japan and the U.K. also meet.

The yuan strengthened on Monday after Steve Schwarzman, one of President Donald Trump’s top economic advisers, said on CNN that Trump will likely temper his criticisms of China, including his campaign claim that the country manipulates its currency. Analysts at Goldman Sachs Group Inc. recommended buying Chinese stocks, saying earnings will rise amid reflation

They boosted their earnings-growth estimate for the MSCI China Index to 13 percent from 10 percent on increasing nominal growth, policy stability before National People’s Congress and favorable flows, according to a Monday note.

Summary

  • Japan’s Topix +0.2%, Nikkei +0.2%
    • Toshiba Corp. -1.8%, Toshiba Tec Corp. +7.5% as Toshiba denies report it’s considering selling Toshiba Tec stake
  • Hang Seng Index +1.1%, HSCEI +1.9%, Shanghai Composite +0.8%
    • HSBC +2.1% as it names AIA’s Tucker chairman to replace Flint in October
    • Yingde trade representing 4.21% stake crosses at HK$6 a share
  • Australia’s S&P/ASX 200 -0.3% led by decline in energy stocks
  • South Korea’s Kospi +1% as won leads rally in Asia’s emerging-market currencies
  • Singapore’s Straits Times Index +0.4%, Jakarta Stock Exchange Composite Index +0.4%, Malaysia’s KLCI Index +0.3%, Philippines Stock Exchange PSEi Index +1.2%, Thailand’s SET Index -0.4%
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