Asian shares advance on US-China trade hopes, ECB stimulus
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard

Friday
July 01, 2022

Sign In
Subscribe
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
FRIDAY, JULY 01, 2022
Asian shares advance on US-China trade hopes, ECB stimulus

Economy

Reuters
13 September, 2019, 08:30 am
Last modified: 13 September, 2019, 08:40 am

Related News

  • Biden offers fresh aid to Ukraine as NATO prepares for long fight
  • Biden says will see Saudi crown prince, won't push directly on oil
  • Hong Kong has 'risen from the ashes', Chinese President says on rare visit
  • Sri Lanka crisis gives India chance to gain sway vs China
  • Chinese President Xi arrives in Hong Kong for handover anniversary

Asian shares advance on US-China trade hopes, ECB stimulus

Sentiment was also supported by US President Donald Trump’s announcement that his administration would unveil a tax overhaul plan aimed at middle-income households next year

Reuters
13 September, 2019, 08:30 am
Last modified: 13 September, 2019, 08:40 am
A man points out an electronic board showing the Nikkei stock index outside a brokerage in Tokyo, Japan, May 14, 2019/Reuters
A man points out an electronic board showing the Nikkei stock index outside a brokerage in Tokyo, Japan, May 14, 2019/Reuters

Asian stocks advanced on Friday as hints of progress in the US-China trade dispute and aggressive stimulus from the European Central Bank helped to counter worries about a global economic slowdown.

MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.2%, while Japan's Nikkei rose 0.4%.

Sentiment was also supported by US President Donald Trump's announcement that his administration would unveil a tax overhaul plan aimed at middle-income households next year.

"Risk assets should find further support from accommodative policies, which are set to remain in vogue for some time, and not just in Europe as seen in the global easing trend," said Esty Dwek, head of global market strategy at Natixis.

"Nonetheless, we believe that trade uncertainty and growth concerns will not vanish, so any reprieve on either subject will be welcome.  We also believe that some earnings growth will be needed for equities to grind higher," she said.

Although conflicting reports on Thursday about whether Trump administration officials had considered offering a limited trade deal to China made U.S. markets choppy, investors overall were sticking to hopes of more progress in upcoming talks.

The United States on Thursday welcomed China's renewed purchases of US farm goods while maintaining the threat of US tariff hikes as the world's two largest economies prepared the ground for talks aimed at breaking the logjam in their trade war.

Trump said he preferred a comprehensive trade deal with China but did not rule out the possibility of an interim pact, even as he said an "easy" agreement would not be possible.

Most economists in a new Reuters poll believed the trade dispute will worsen or at best stay the same over the coming year.

The US S&P 500 closed within striking distance of its all-time closing high, rising 0.29% to 3,009.57, near record closing high of 3,024.50 marked in late July.

Philadelphia semiconductor shares index hit an all-time high while MSCI ACWI also came near this year's high after seven straight days of gains by Thursday.

The European Central Bank delivered bigger-than-expected stimulus, cutting interest rates by 0.10 percentage point to minus 0.50 percent, promising that rates would stay low for longer and restarting bond purchases of 20 billion euros a month from November.

The resumption of quantitative easing had been seen as a close call and helped to boost risk assets.

But the euro quickly lost steam and European bond yields also rose as profit-taking set in.

ECB President Mario Draghi stepped up his rhetoric in calling for governments to spend their way out of a slowdown, highlighting the limitations of monetary policy and also fanning expectations of fiscal spending down the road.

The euro stood at $1.10615, having risen 0.5 percent on Thursday and staying near two-week high of $1.10875 hit in US trade.

Rising risk appetite pushed the yen down to 108.15 yen per dollar. It hit a six-week low of 108.19 on Thursday.

The 10-year German Bund yields also rose back to minus 0.521%.

That also helped to lift the yield on 10-year US Treasuries to as high as 1.081 percent, its highest level since early August.

Fed funds rate futures price in an interest rate cut of 0.25 percentage point by the Fed next week but have effectively priced out any chance of a larger cut.

The Fed will announce its policy on Wednesday, followed by the Bank of Japan (BOJ) on Thursday.

Sources told Reuters the BOJ is leaning towards standing pat next week if markets are calm, but is brainstorming ways to deepen negative interest rates at minimal cost.

"I think a rally in stock prices will run out of steam soon. It's typical buy-on-rumor-sell-on-fact trade on central bank stimulus and will be over by the Fed and the BOJ's meetings," said Tatsushi Maeno, senior strategist at Okasan Asset Management.

"People also seem to think there will be a deal between China and the States soon but you never know when suddenly Trump do about-face. We just saw that in May and August," he added.

Oil prices were softer as a meeting of the OPEC+ alliance yielded no decision on deepening crude supply cuts.

Brent crude futures fell 0.2% to $60.29 a barrel while US West Texas Intermediate (WTI) crude lost 0.2% to $54.96.

Top News

Trade War / US / china

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • BB bids farewell to easy money policy to tame inflation
    BB bids farewell to easy money policy to tame inflation
  • Economist Zahid Hussain. Illustration: TBS
    Typical monetary steps cannot tame inflation
  • Ahsan H Mansur. TBS Sketch
    It won’t be able to rein in inflation

MOST VIEWED

  • Photo: Collected
    Tech startup ShopUp bags $65m in Series B4 funding
  • World Bank to give Bangladesh $18b IDA loans in next five years
    World Bank to give Bangladesh $18b IDA loans in next five years
  • Photo: Noor-A-Alam
    Dollar crisis intensifies LC payment pressure as taka weakens
  • 20 businesses get nod for $326m foreign loan for expansion
    20 businesses get nod for $326m foreign loan for expansion
  • Infographic: TBS
    Dhaka ranks as costliest city again in South Asia for expatriates: Survey
  • Foreign aid crosses record $8 billion in May
    Foreign aid crosses record $8 billion in May

Related News

  • Biden offers fresh aid to Ukraine as NATO prepares for long fight
  • Biden says will see Saudi crown prince, won't push directly on oil
  • Hong Kong has 'risen from the ashes', Chinese President says on rare visit
  • Sri Lanka crisis gives India chance to gain sway vs China
  • Chinese President Xi arrives in Hong Kong for handover anniversary

Features

Bangladesh ranks among the top ten countries whose citizens have sought asylum in Cyprus. Photo: Arafatul Islam/DW

How Bangladeshi migrants end up in Cyprus

12h | Panorama
Dr M Mushtuq Husain. Sketch: TBS

'We did not face an extreme crisis with Omicron. But this wave is spreading faster'

15h | Panorama
Luxury Houseboat owners  distributed food, provided medical assistance, and shelter to the flood victims, till the flood waters receded Photo: Masum Billah

The first responders: How luxury houseboats became rescue centres for flood victims

17h | Panorama
Mahathir accused financial titans of seeking to reverse decades of economic development that propelled tens of millions into the middle class. Photo: Bloomberg

George Soros, Mahathir and the legacy of 1997

1d | Panorama

More Videos from TBS

Shuttle train at CU: More than a mere transport

Shuttle train at CU: More than a mere transport

3h | Videos
Dhaka ranks as costliest city again in South Asia for expatriates

Dhaka ranks as costliest city again in South Asia for expatriates

4h | Videos
Kremlin hints solution to Ukraine war

Kremlin hints solution to Ukraine war

7h | Videos
Fever spread: Is it seasonal fever or Covid?

Fever spread: Is it seasonal fever or Covid?

7h | Videos

Most Read

1
Padma Bridge from satellite. Photo: Screengrab
Bangladesh

Padma Bridge from satellite 

2
Meet the man behind 'Azke amar mon balo nei'
Splash

Meet the man behind 'Azke amar mon balo nei'

3
Photo: TBS
Bangladesh

Motorcycles banned on Padma Bridge 

4
Photo: Collected
Economy

Tech startup ShopUp bags $65m in Series B4 funding

5
Photo: Courtesy
Corporates

Gree AC being used in all parts of Padma Bridge project

6
World Bank to give Bangladesh $18b IDA loans in next five years
Economy

World Bank to give Bangladesh $18b IDA loans in next five years

EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2022
The Business Standard All rights reserved
Technical Partner: RSI Lab
BENEATH THE SURFACE
Workers unload sacks of paddy at the BOC Ghat paddy market on the bank of the Meghna River in Brahmanbaria’s Ashuganj, the largest paddy market in the eastern part of the country. This century-old market sells paddies worth Tk5-6 crore a day during the peak season. PHOTO: RAJIB DHAR

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net