· Asian stocks perk up on economic cheer as Treasuries stabilise
Asian shares edged higher on Wednesday as investors shrugged off concerns that stocks may have rallied too far too fast in the past year, and focused instead on optimism that more imminent U.S. stimulus will energise the global economic recovery.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1.12%. Australian shares were up 0.82%, while Japan’s Nikkei stock index rose 0.45%. Shares in China gained 1.27%.
E-mini S&P futures were up 0.36%.
But some analysts warned that worries that stock prices may be frothy, a fear echoed by a top Chinese regulatory official on Tuesday, may make it harder for equity markets to hang on to gains. Fears that last week’s sell-off in U.S. Treasuries, which rattled stock markets, could resume may also put a lid on stock prices, they said.
· Hong Kong soars nearly 3% as Asia-Pacific markets rise
Hong Kong’s Hang Seng index led gains among the region’s major markets, jumping 2.7% to close at 29,880.42. Shares of Chinese banks listed in the city saw strong gains: China Construction Bank gained 5.61%, Industrial and Commercial Bank of China surged 5.81% and Bank of China rose 4.09%
· China stocks gain the most in 3 weeks on growth optimism
China stocks posted their biggest one-day gain in three weeks on Wednesday, led by banking and commodity shares, as hopes of domestic economic growth offset fears of tighter monetary policy.
Some traders also attributed the market strength to bullishness ahead of the annual gathering of the National People's Congress, which starts on Friday.
The blue-chip CSI300 index jumped 1.9% to 5,452.21, while the Shanghai Composite Index gained 2% to 3,576.90 points. Both indexes notched their best performance since early February.
· China fines group-buying platforms owned by Meituan, Pinduoduo over improper pricing
China fined on Wednesday five community group-buying platforms owned and backed by the likes of Meituan, Pinduoduo, Tencent Holdings, Alibaba Group and Didi Chuxing, citing “improper pricing behaviour”.
The State Administration of Market Supervision said it had decided to fine the registered firms behind Didi-owned Chengxin Youxuan, Pinduoduo’s Duo Duo Maicai, Meituan Select, and Nicetuan 1.5 million yuan ($230,000) each, and that of Shixianghui 500,000 yuan. Nicetuan and Shixianghui respectively count Alibaba and Tencent as investors.
These platforms had issued since the second half of 2020 a large amount of price subsidies which disrupted market order, the regulator said. Some of them also used false or misleading price tactics to “trick” consumers into buying from them, it added.
· Japanese shares edge higher as hopes for economic rebound boost cyclical stocks
Japanese shares ended marginally higher on Wednesday, as investors picked up cyclical stocks on hopes of a quicker economic recovery from the pandemic-led recession.
However, gains were capped by worries about bond market volatility and talk of huge selling for rebalancing this month.
The Nikkei average rose 0.51% to close at 29,559.10, while the broader Topix gained 0.51% to 1,904.54.
· Japanese and Swiss central bank shares soar in exuberant markets
The listed shares of the Japanese and Swiss central banks rose sharply this week, without any apparent reason, possibly reflecting high levels of investor exuberance in markets awash with cash.
Shares in the Bank of Japan (BOJ) hit their upper trading limit for a third session on Wednesday, taking gains over 4 sessions to 71%. Swiss National Bank (SNB) shares rose around 10% in two days.
· European markets open higher; UK investors await budget plans
European stocks opened higher on Wednesday, with investors in the U.K. keen to see what taxation and spending plans the British government reveals in the annual budget statement.
The pan-European Stoxx 600 climbed 0.7% in early trade, with autos adding 2.1% to lead gains as all sectors and major bourses entered positive territory.
Reference: CNBC, Reuters
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