China revives stocks rally, traders await US inflation test
Investors wait on details of China stimulus measures
Focus on Saturday's briefing on fiscal policy moves
Dollar at two-month high ahead of U.S. inflation data
Traders have backed down from expectations of steep rate cuts
Updates at 0525 GMT
By Ankur Banerjee
SINGAPORE, Oct 10 (Reuters) -Chinese stocks resumed their rally on Thursday, fanned by expectations a briefing from finance officials this weekend would deliver anticipated fiscal stimulus, while the dollar lingered near a two-month high before a U.S. inflation report.
Mainland shares got a lift early in the Asia session as China's central bank kicked off its 500 billion yuan facility to spur capital markets, a plan it announced late September as part of a series of stimulus measures.
China's blue-chip CSI300 index .CSI300 rose about 3%, partially reversing the previous day's 7%, which was triggered by some investor concern about the lack of details in the stimulus package. Hong Kong's Hang Seng .HSI surged over 4%, after slipping 1.3% on Wednesday and is up 26% this year.
That left MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS 1.25% higher, with futures indicating European bourses were due for a slightly higher open.
The market's attention is now firmly on a finance ministry press conference on Saturday that will provide details of the fiscal stimulus plan. The theme of the news conference is "intensifying countercyclical adjustment of fiscal policy to promote high-quality economic development."
"We believe the consensus is expecting around 2 trillion to 3 trillion yuan in size of fiscal stimulus measures," said Richard Tang, China strategist at Julius Baer.
Tang expects more announcements of additional fiscal measures in the coming weeks.
It's been a volatile week for Chinese markets.
Mainland shares rallied to two-year highs on Tuesday after the long National Day holiday but quickly lost steam as the lack of details on stimulus measures dealt a blow to market enthusiasm.
Benchmark indexes in China notched their biggest daily losses on Wednesday since the COVID-19 pandemic began.
Overall, the CSI300 index is up 26% and the Shanghai Composite index .SSEC is up 22% since the measures were first announced on Sept. 24.
"We believe the recent policy pivot marks a step change in the level of policy support, and that meaningful fiscal support is likely to follow," said Nicholas Yeo, head of China equities at abrdn.
"For the rally to sustain, the government needs to deliver on fiscal stimulus."
US CPI LOOMS
Overnight, the S&P 500 .SPX and the Dow .DJI closed at record highs after the release of Federal Reserve meeting minutes and ahead of September inflation data. .N
The minutes showed a "substantial majority" of Fed officials at the September meeting supported beginning an era of easier monetary policy with an outsized half-point rate cut.
However, there appeared even broader agreement that the initial move would not commit the Fed to any particular pace of rate reductions in the future, the minutes showed.
Markets are pricing in an 82% chance of a 25 basis point cut next month, CME FedWatch tool showed, with investors scaling back expectations for aggressive rate cuts after last week's strong U.S. jobs report.
Investor focus will be on inflation data on Thursday in the form of the consumer price index (CPI) for insight into the Fed's rate path, while the corporate earnings season kicks off with bank earnings on Friday.
September's CPI is likely to show core inflation holding steady at a 3.2% year-on-year clip, according to economists polled by Reuters.
"A hotter-than-expected core inflation number would see yields extend their recent gains and for traders to scale back further expectations for a Fed rate cut in November," Tony Sycamore, market analyst at IG said.
"A scenario that is likely to raise questions around the current Goldilocks narrative and unnerve equity markets."
The shifting U.S. interest rate expectations have boosted the dollar, with the dollar index =USD, which measures the currency against six key rivals, steady after climbing to the highest since Aug. 16 overnight. FRX/
In commodities, oil prices rose as investors contended with rising tensions in the Middle East and its impact on oil supply, as well as a spike in demand as a major storm barrelled into Florida.
Brent crude futures LCOc1 was 0.78% higher at $77.18 a barrel, while the U.S. West Texas Intermediate (WTI) futures CLc1 rose 0.83% at $73.85 a barrel. O/R
World FX rates YTD http://tmsnrt.rs/2egbfVh
Asian stock markets https://tmsnrt.rs/2zpUAr4
Reporting by Ankur Banerjee in Singapore, additional reporting by Suzanne McGee in New York; Editing by Muralikumar Anantharaman and Sam Holmes
To read Reuters Markets and Finance news, click on https://www.reuters.com/finance/markets For the state of play of Asian stock markets please click on: 0#.INDEXA
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آخر الأخبار
إخلاء المسؤولية: تتيح كيانات XM Group خدمة تنفيذية فقط والدخول إلى منصة تداولنا عبر الإنترنت، مما يسمح للشخص بمشاهدة و/أو استخدام المحتوى المتاح على موقع الويب أو عن طريقه، وهذا المحتوى لا يراد به التغيير أو التوسع عن ذلك. يخضع هذا الدخول والاستخدام دائماً لما يلي: (1) الشروط والأحكام؛ (2) تحذيرات المخاطر؛ (3) إخلاء المسؤولية الكامل. لذلك يُقدم هذا المحتوى على أنه ليس أكثر من معلومات عامة. تحديداً، يرجى الانتباه إلى أن المحتوى المتاح على منصة تداولنا عبر الإنترنت ليس طلباً أو عرضاً لدخول أي معاملات في الأسواق المالية. التداول في أي سوق مالي به مخاطرة عالية برأس مالك.
جميع المواد المنشورة على منصة تداولنا مخصصة للأغراض التعليمية/المعلوماتية فقط ولا تحتوي - ولا ينبغي اعتبار أنها تحتوي - على نصائح أو توصيات مالية أو ضريبية أو تجارية، أو سجلاً لأسعار تداولنا، أو عرضاً أو طلباً لأي معاملة في أي صكوك مالية أو عروض ترويجية مالية لا داعي لها.
أي محتوى تابع للغير بالإضافة إلى المحتوى الذي أعدته XM، مثل الآراء، والأخبار، والأبحاث، والتحليلات والأسعار وغيرها من المعلومات أو روابط مواقع تابعة للغير وواردة في هذا الموقع تُقدم لك "كما هي"، كتعليق عام على السوق ولا تعتبر نصيحة استثمارية. يجب ألا يُفسر أي محتوى على أنه بحث استثماري، وأن تلاحظ وتقبل أن المحتوى غير مُعدٍ وفقاً للمتطلبات القانونية المصممة لتعزيز استقلالية البحث الاستثماري، وبالتالي، فهو بمثابة تواصل تسويقي بموجب القوانين واللوائح ذات الصلة. فضلاً تأكد من أنك قد قرأت وفهمت الإخطار بالبحوث الاستثمارية غير المستقلة والتحذير من مخاطر المعلومات السابقة، والذي يمكنك الاطلاع عليه هنا.
