Asia stocks gain; US futures slip after Netflix, Tesla earnings

Asian stocks rose and sterling stumbled on Thursday as cooling UK inflation lifted risk appetite ahead of central bank meetings next week, while disappointing earnings results from Netflix and Tesla pushed U.S. futures lower.

Meanwhile, China’s yuan shot up after authorities tweaked cross-border financing rules and major state-owned banks were seen selling dollars in moves analysts said were designed to shore up the currency.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was 0.53% higher, on course to snap its three day losing streak. Japan’s Nikkei (.N225) slid 0.93%.

China stocks have been under pressure in recent weeks as soft economic data weighed on sentiment, with investors waiting for meaningful stimulus to jump start the country’s stuttering post-pandemic recovery.

On Thursday, the Shanghai Composite Index (.SSEC) was 0.1% higher, while Hong Kong’s Hang Seng Index (.HSI) gained 0.3%.

China on Wednesday pledged to make the private economy “bigger, better and stronger” with a series of policy measures designed to help private business.

Britain’s high rate of inflation fell more than expected in June to its slowest in over a year at 7.9%, data showed on Wednesday, with markets dialling back expectations of further aggressive rate hikes from the Bank of England.

This report’s information was first seen on REUTERS; to read more, click this link.