Private Report Reveals a Minor Increase in Industry Activity in Mainland China Markets

Private Report Reveals a Minor Increase in Industry Activity in Mainland China Markets ...

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In Singapore, Following the widely anticipated Fed decision to raise rates by half a percentage point overnight for the first time in two decades, shares in the Asia-Pacific region were generally higher on Thursday.

mainland Chinese stocks finished the day in the black after a few days of vacation. The Shenzhen component increased by 0.26 percent to 11,046.38, while the Shanghai composite increased by 0.68 percent to 3,067.76.

Mainland Chinese stocks are being purchased by foreign funds.

For the 12th day in a row, net northbound flows on the stock connect are up. pic.twitter.com/SnGA5Mzwkg

In a private sector survey released on Thursday, China's service industry continued to shrink in April. The Caixin services Purchasing Managers Index (PMI) fell from 42 in March to 36.2 in April.

By the 50-point threshold, PMI readings represent growth or contraction.

According to statistics released over the weekend, Chinese industry activity decreased in April as a result of COVID lockdowns on industrial production.

The Hang Seng index in Hong Kong fell roughly 0.1 percent in the final hour of trading. JD.com and Bilibili stock prices rose by 1% and 2.55 percent, respectively. The SEC has placed the two companies on a list of corporations at risk of being delisted from American exchanges.

The S&ASX 200 rose 0.8 percent in Australia to reach 7,364.70, becoming the largest Asian-Pacific index outside of Japan.

All markets in South Korea and Japan were closed on Thursday.

The 50-point threshold for PMI assessments distinguishes expansion from contraction. Sequential PMI numbers reflect change or contraction from one month to the next.

The latest Ifo shows some interesting trends. The difference between current assessment and future expectations reaches 9.6 points as assessment sub-continent has grown more than predicted. Coronavirus cases may have weighed on future expectations, as we saw last week in the PMI.

According to the data available over the weekend, Covid lockdowns, which hampered industrial productivity, contributed to a decrease in Chinese industry activity in April.

The Hong Kong Hang Seng index lost more than 0.1 percent in the final hour of trading, while JD.com and Bilibili stock both gained 1.5 and 2.55 percent in the final hour of trading. The US Securities and Exchange Commission has placed the two companies on a list of entities that are at risk of being delisted from US exchanges.

The S&ASX 200 index of Australian stocks rose by 0.8 percent to close at 7,364.70, the largest non-Japanese stock index in Asia-Pacific.

All markets in South Korea and Japan were closed on Thursday.

Currency and crude oil are two distinct things.

The dollar index in the United States, which measures the dollar against a basket of its competitors, has fallen from above 103 recently to 102.822.

Countries that import crude oil encountered currency weakness as a result of CAD problems and the closure of a QE liquidity tap.

When the worst is seen to be behind, don't expect any serious worry!

USD/KES up from 100 to 120 (Jan 2020 to July 2022) by 8% p.a is not bad when in difficult times! https://t.co/F6ga7dMExY

The Japanese yen vs. the dollar sat at 129.52, up from over 130 yesterday. The Australian dollar sat at $0.7215.

In the afternoon of Asian trading hours, the price of international benchmark Brent crude futures rose by 0.23 percent to $110.39 per barrel. The price of US oil futures rose somewhat to $107.88 per barrel.

TICKERCOMPANYNAMEPRICECHANGE%CHANGE
.N225
Nikkei 225 Index*NIKKEI27993.35191.710.69
.HSI
Hang Seng Index*HSI20165.849.330.05
.FTFCNBCA
CNBC 100 ASIA IDX*CNBC 1008185.846.640.57
.AXJO
S&P/ASX 200*ASX 200699347.80.69
.SSEC
Shanghai*SHANGHAI3259.966.720.21
.KS11
KOSPI Index*KOSPI2452.250.750.03

The Federal Reserve has hiked interest rates.

The Federal Reserve of the United States raised its benchmark interest rate by 0.5 percentage points on Wednesday, according to market estimates. The central bank also stated that it intends to reduce its monthly bond holdings by $95 billion.

BREAKING:

*FED ANTICIPATES 'ONGOING INCREASES' IN INTEREST RATES FOMC STATEMENT

Fed Chair Jerome Powell reiterated the Fed's commitment to reducing inflation, even though he stated that a 75 basis point increase is not something the committee is actively discussing.

Wall Street markets rose overnight, with the S&P 500 gaining by about 3% to 4,300.17. To reach 34,061.06, the Dow Jones Industrial Average rose 932.27 points or 2.81 percent. To 12,964.86, the Nasdaq Composite rose 3.19 percent.

Lavanya Venkateswaran, an economist at Mizuho Bank, noted in a note that the market rise was initiated by the pullback of Powell's 75-bp rise.

According to Lavanya, the market reaction does not take away from the hawkish Fed objectives, mostly highlighting a respite from the numerous rate rises.

The RBI has raised interest rates.

The Nifty 50 in India rose by 1.26 percent at 12:53 local time, while the BSE Sensex rose by about 1.5 percent following an off-cycle monetary policy meeting.

We r bullish on markets nowBoth nifty and banknifty r bullish on charts. Other important events r also coming next week including the RBI MPC meeting (Repo Rate increase) Nifty can find resistance around 17700-800 levels. #Nifty #banknifty #Investment

The Indian central bank raised its repo rate, which is the rate at which the RBI lends to commercial lenders, from 4% to 4.44% on Wednesday.

Inflation in India was at 6.5 percent at the most recent census, and Suresh Tantia, Credit Suisse's senior investment strategist at the Credit Suisse Asia-Pacific CIO Office, predicted inflation to reach 7.5 percent in the following month.

On CNBC's Squawk Box Asia on Thursday, he said it was high time the RBI took action and tightened monetary policy to manage inflation.

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