Chinese Stocks Surge 2% on Central Bank’s Decision to Hold Rates Steady, Asian Markets Follow Suit
Chinese stocks rose on Monday, mostly led by property stocks, with China Vanke, China Merchants Shekou Industrial Zone, and Gemdale all gaining. Malaysia recorded a trade surplus for its 33rd straight month in January, with exports and imports both increasing. Analysts expect China’s oil demand to return to pre-Covid levels in the second quarter, with global markets becoming dependent on OPEC+ for increased oil production. China formalized rules for overseas IPOs, requiring domestic companies to comply with national security measures and personal data protection law. New Zealand markets led losses in the region ahead of the central bank’s interest rate hike decision. South Korean and Japanese stocks both rose on Monday.
Full Story – Chinese stocks up 2% after central bank leaves rates unchanged; Asia markets rise
Chinese stocks rise 2%, property leads gains
China stocks rose on Monday afternoon, mostly led by property stocks trading in mainland bourses.
China Vanke shares listed in Shenzhen gained 2.75% while China Merchants Shekou Industrial Zone rose 3.3%. Chinese developer Gemdale also gained 3.24%.
The Hang Seng Mainland Properties Index also rose 2.99% while the SSE Banks Index rose 2.27%.
— Jihye Lee
10 Hours Ago
Malaysia’s extended trade surplus for 33rd straight month
Malaysia recorded a trade surplus for its 33rd straight month in January 2023, coming in at RM18.2 billion ($4.1 billion).
This was slightly lower than expectations, which forecasted a $20.2 billion surplus.
The country’s department of statistics said Malaysia’s exports in January grew by 1.6% on an annualized basis to RM112.8 billion, and imports also registered an increase of 2.3% to RM94.7 billion in the same period.
Total trade for Malaysia expanded by 1.9% to RM207.5 billion, up from RM203.6 billion in January 2022.
The ringgit weakened slightly against the U.S .dollar to trade at 4.4275 after the release of the data.
10 Hours Ago
China’s oil demand to return to pre-Covid levels in second quarter, analyst says
The oil market is “looking for tangible signs” of China’s demand for oil returning to pre-pandemic levels, according to Vanda Insights.
Founder Vandana Hari said she expects to see a full recovery by the second quarter backed by data that show a rise in travel activities.
“We are already seeing in high frequency mobility data because clearly after three years, the Chinese citizens are traveling,” she said, adding “There’s travel back and forth overseas as well as in the domestic market.”
Separately, Andy Lipow, president of Lipow Oil Associates, said a rebound in Chinese demand would push dependence on OPEC+.
He added that global markets would become dependent on OPEC+ for increased oil production and fears that the oil cartel may not be up to the task in time.
Brent crude futures last traded up 0.49% at $83.41 a barrel, while the U.S. West Texas Intermediate futures inched up 0.45% to $76.68 a barrel.
—Lee Ying Shan
11 Hours Ago
China formalizes rules for overseas IPOs
The China Securities Regulatory Commission announced late Friday new rules that formalize requirements for China-based companies wanting to list in the U.S.
Such public offerings had slowed after the increased scrutiny from different regulators following Didi’s massive U.S. IPO in June 2021.
The securities regulators’ new rules require domestic companies to comply with national security measures and personal data protection law before going public overseas.
The rules, set to take effect March 31, do not ban the variable interest entity structure commonly used by Chinese companies when listing in the U.S.
— Evelyn Cheng
13 Hours Ago
New Zealand leads losses in Asia-Pacific markets ahead of interest rates decision
Markets in New Zealand led losses in the region as investors await the central bank’s interest rate hike decision on Wednesday. The S&P/NZX 50 Index was trading 1.76% lower, in contrast to most Asian markets on Monday.
This comes after the country suffered a series of natural disasters over the last three weeks, including flash floods in Auckland and Cyclone Gabrielle hitting North Island.
Among 25 economists polled by Reuters, 20 expected the central bank to raise its policy rate by 50 basis points next week to 5.25%.
In November, the Reserve Bank of New Zealand said interest rates needs to “reach a higher level, and sooner than previously indicated, to ensure inflation returns to within its target range over the medium term.”
— Lim Hui Jie
14 Hours Ago