Stocks rallied as investors responded positively to Federal Reserve Chairman Jerome Powell's comments on strong economic growth, while bond market volatility continued and property sales fell; chip designer Arm filed for a Nasdaq listing; Nvidia reported strong Q2 results; the SEC voted to strengthen regulations on private equity, hedge funds, and venture capital; and the BRICS nations sent invites to six countries to join the bloc.
Asian shares rally as China announces new measures to support its struggling markets, while investors remain cautious ahead of U.S. jobs and inflation data that could impact interest rates.
Chinese stocks rally as Beijing takes steps to boost the market.
Federal Reserve Chair Jerome Powell warned that inflation and economic growth remain too high, indicating that interest rates may continue to rise and remain restrictive for longer. However, markets rebounded, with US stocks rallying and Asian markets starting the week on a high note. The Hong Kong stock market saw contrasting performances, with China Evergrande Group plunging while Xpeng soared. US Trade Representative Katherine Tai highlighted China's dominance in rare earth metals, making US supply chains vulnerable. Investors will be watching for the Personal Consumption Expenditure report and the August jobs report to gauge the Fed's future rate decisions. Powell's ambiguous remarks left room for interpretation, with markets focusing on the positive outlook for economic growth rather than the cautionary tone on interest rates.
China's stamp duty and margin cuts revive confidence in the Hong Kong stock market, leading to a rally in stocks such as HKEX, Alibaba, and BYD, while China Evergrande continues to struggle.
China has announced measures to support the market, including reducing stamp duty on stock trading and approving the launch of retail funds, but the response from investors has been muted.
China's attempts to stabilize its stock market through new initiatives and measures have failed as a brief rally fizzled out, reflecting concerns over the nation's economic health.
Buyers returned to the stock market after positive data on the U.S. jobs market suggested that wage inflation may decrease further, with Microsoft stock showing promising signs in forming a new base, while China's PDD Holdings experienced a significant gain amid hopes of government measures to stimulate economic activity. Additionally, megacap tech stocks led a broad rally in the stock market, with the Nasdaq composite rising 1.7%, and there is anticipation of a potential increase in the overnight fed funds rate and a rise in bond yields.
Chinese chip stocks rally after Huawei's launch of the Mate 60 Pro phone, with investors speculating that it could be using a 5G capable chip, potentially benefitting China's local semiconductor sector.
U.S. stock futures are mixed as investors await economic data and assess the possibility of the Federal Reserve ending its interest rate hiking campaign, while Chinese manufacturing contracts, increasing pressure for stronger economic support from Beijing.
Asian stocks, particularly China shares, have continued to rally amid speculation that Beijing's small policy measures could result in significant stimulus, with expectations of a relaxation of property buyer restrictions; Japanese shares have also seen positive performance after data revealed record recurring profits in Q2, resulting in the Topix reaching a 33-year high; U.S. futures imply a high probability of no interest rate hike this month and suggest the tightening cycle may be over, while Treasuries sold off on Friday, leading to concerns over the budget deficit and potential difficulties in absorbing new debt.
India's stock market has seen a rally as strong macroeconomic fundamentals and China's economic slowdown keep foreign investors invested in Indian stocks, while a surge in retail investor interest continues to drive the market.
Risk appetite remains high in the market as Asian markets follow the rally in Wall Street; China's policy support measures, strong business activity data, and positive IPO of Arm contribute to the optimistic market sentiment.
US stock futures were mostly steady as the major indexes aimed to extend gains from Thursday's rally, while positive economic data from China and strong performance from British chipmaker Arm added further support.
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