Asian stocks pause rally, eyeing China stimulus, Powell testimony
Timilehin Adejumobi
1 min read
Asian shares started cautiously on Monday after their best weekly run in five months, as investors looked ahead to China’s rate decision and U.S. Federal Reserve Chair Jerome Powell’s testimonies for clues on the path ahead.
Both S&P 500 futures and Nasdaq futures were mostly flat after Wall Street’s bullish run met resistance on Friday. Cash U.S. Treasuries were untraded due to the Juneteenth holiday, while futures were largely steady.
In Asia, Japan’s Nikkei (.N225) slipped 0.4%, having clinched a three-decade top on Friday, buoyed by the Bank of Japan’s (BOJ) leaving its ultra-easy policy setting unchanged, which sent the yen to a 7-month low against the U.S. dollar.
MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 0.6%, after hitting a four-month high on Friday and finishing up 3% for the week, the best since January.
China’s blue chips (.CSI300) slipped 0.5% while Hong Kong’s Hang Seng index (.HSI) eased 0.6%.
In China, hopes for more forceful stimulus are growing after the cabinet met on Friday to discuss measures to spur economic growth, but concerns remain whether they would be enough to revive a faltering economy.
This report’s information was first seen on REUTERS; to read more, click this link.
