Five Things You Need to Know to Start Your Day: Asia

Good morning. JPMorgan fears a repeat of last summer’s stock rout. Xi Jinping to visit the European Union for the first time in five years. Elon Musk’s China visit pays off. Here’s what’s moving markets. — Isabelle Lee

JPMorgan Chase & Co.’s Marko Kolanovic said stocks are likely to repeat the late summer swoon that kicked in last August as higher-for-longer interest rates weigh on growth. Gains by megacap tech firms, he added, are masking investor concerns about elevated rates. US stocks staged a rebound after pulling back for the most part in April, rising amid a solid earnings season with the S&P 500 topping 5,100. Early results suggest that more than 80% of US companies are beating expectations. Morgan Stanley’s Michael Wilson said the pressure from higher Treasury yields is taking the shine off of corporate results. Although the share of companies beating analysts’ profit estimates was “strong,” he said the reaction in share prices was still muted. US 10-year yields fell five basis points to 4.62%.