Asian stocks climb with economic data in focus
economictimes.indiatimes.comAsian stocks broadly rose after US equities moved higher, with traders awaiting a raft of economic figures over the next few days for clues on the outlook for global central bank policy.
An Asian equity gauge climbed 0.5%, supported by gains in Hong Kong, Japan and Australia. Shares in mainland China fell at the open, before heading into positive territory.
US futures steadied following the S&P 500’s first back-to-back advance in August.
Still, investors will continue to monitor any signs of support measures from the Chinese government after most of the gains in the nation’s stock markets Monday dissipated by the end of the session and foreign funds extended what was set to be a record outflow this month.
“It’s becoming obvious that much more significant stimulus, particularly from the fiscal side, will be needed to change the bearish outlook on mainland markets, including the renminbi,” Alvin Tan, head of Asia FX strategy at RBC in Singapore, wrote in a note.
Japan’s unemployment rate rose for the first time in four months in July, a slightly negative signal for the central bank and the government.
Strategists at Goldman Sachs Group Inc. expect the yen to depreciate to levels last seen more than 30 years ago if the Bank of Japan sticks to its dovish stance.
Over the next six months, the currency is projected to reach 155 per dollar — the weakest since June 1990, according to strategists led by Kamakshya Trivedi. They had previously expected the yen to trade to 135.
Treasury yields fell across tenors in early trading in Asia, with the two-year’s dropping nearly seven basis points to slightly below 5%.
