China stocks rise as authorities increase support – markets close | Top Vip News

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(Bloomberg) — The rally in Chinese stocks intensified after authorities took more steps to revive investor confidence, defying broader weakness in Asia following a tech-led retreat on Wall Street.

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A gauge of Chinese companies listed in Hong Kong jumped as much as 4%, less than 1% away from erasing all its year-to-date losses. The CSI 300 index of continental shares rose 2.2%. Property developers led the gains after banks increased financial aid for the troubled sector. A new crackdown on quantitative fund trading also eased concerns about short selling.

That contrasts with losses in other Asian markets, from Japan to South Korea to Australia, after the Nasdaq 100 fell nearly 1% and the S&P 500 fell below 5,000 points on Tuesday. The focus is on earnings from chipmaker Nvidia Corp. and the minutes of the Federal Reserve’s latest policy meeting, due to be released later Wednesday. US stock contracts fell.

“Enthusiasm for AI has deflated a bit and there may be some rotation within North Asia towards China, which is still enjoying the post-holiday cheer thanks to relatively better consumer spending data, while measures market stabilization efforts are still underway,” said Marvin Chen, an analyst at Bloomberg Intelligence. .

Elsewhere, shares of HSBC Holdings Plc fell as much as 3.8% in Hong Kong after the bank reported an 80% drop in its fourth-quarter profit. Aluminum rose on speculation that a new wave of US sanctions against Russia could hit the metal, potentially disrupting supplies.

The dollar steadied and 10-year Treasury yields were little changed in Asian trading, while persistent bearishness around China’s steel demand outlook pushed iron ore to a low of three months.

In Japan, the recent loss of momentum has kept the Nikkei 225 from reaching its highest-ever close of 38,915.87 in 1989. Still, macro and equity hedge funds are betting on Japan this year, predicting that the bank Central will change its policy after eight years of negative interest rates. The yen stabilized around 150 to the dollar as the country’s exports rose more than expected in January.

Nvidia Nerves

The current earnings season has so far reaffirmed the view that U.S. companies are holding up well, although the reporting period has been mixed for the “Magnificent Seven” mega-caps. Among other highlights of the US session, Walmart Inc. rose after reporting strong earnings, while Palo Alto Networks Inc. fell in late trading after cutting its revenue forecast for the year.

Ahead of Nvidia’s numbers, some traders decided to lock in profits; The market is also weighing a report that Microsoft Corp. is developing a network card as an alternative to the one supplied by the chipmaker.

The artificial intelligence frenzy has boosted stocks that have been linked to this technology, and Nvidia is one of the few companies that has demonstrated significant revenue growth thanks to AI.

Minutes from the Federal Reserve’s January meeting will also be released on Wednesday, offering traders more clues about where policymakers stand on a rate cut timeline. Faster-than-expected inflation last week fueled concerns that the Federal Reserve will not begin cutting interest rates as soon (or as much) as market participants had expected earlier this year.

Both oil and gold rose.

This week’s key events:

  • Eurozone consumer confidence, Wednesday

  • Nvidia earnings, Wednesday

  • Federal Reserve releases minutes from its January meeting on Wednesday

  • Atlanta Fed President Raphael Bostic speaks Wednesday

  • Eurozone S&P Global Services PMI, S&P Global Manufacturing PMI, CPI, Thursday

  • US initial jobless claims, US existing home sales, Thursday

  • The ECB publishes the accounts of its January meeting on Thursday

  • Federal Reserve Governor Lisa Cook and Minneapolis Fed President Neel Kashkari speak Thursday

  • Property prices in China, Friday

  • Germany IFO business climate, GDP, Friday

  • The ECB publishes its survey on inflation expectations in 1 and 3 years on Friday

Some of the main movements in the markets:

Stocks

  • S&P 500 futures fell 0.1% as of 2:16 p.m. Tokyo time.

  • The Japanese Topix fell 0.2%

  • Australia’s S&P/ASX 200 fell 0.7%

  • Hong Kong’s Hang Seng rose 2.8%

  • The Shanghai Composite rose 2.2%

  • Euro Stoxx 50 futures unchanged

  • Nasdaq 100 futures fell 0.3%

Coins

  • Bloomberg Dollar Spot Index Little Changed

  • The euro was little changed at $1.0814

  • The Japanese yen barely changed at 150.02 per dollar.

  • The offshore yuan rose 0.2% to 7.1860 per dollar

  • The Australian dollar rose 0.3% to $0.6566.

CRYPTOCURRENCIES

  • Bitcoin was little changed at $52,046.76

  • Ether rose 0.5% to $3,004.71.

Captivity

  • The yield on the 10-year Treasury bond barely changed, standing at 4.27%.

  • The 10-year Japanese bond yield was unchanged at 0.725%

  • Australia’s 10-year yield was little changed at 4.18%.

Raw Materials

  • West Texas Intermediate crude rose 0.3% to $77.29 a barrel

  • Spot gold rose 0.3% to $2,030.21 an ounce.

This story was produced with the help of Bloomberg Automation.

–With assistance from Rob Verdonck.

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