Asian equities cheered the Fed’s interest rate cut outlook, except for Japan and China, while the Philippines outperformed.
Asian equities cheered the Fed’s interest rate cut outlook, except for Japan and China, while the Philippines outperformed.
The US dollar fell as China’s currency the Renminbi (CNY) gained +0.54%, closing at 7.13 CNY per USD from yesterday’s 7.17, the Bloomberg Asia Dollar Index gained +0.8%, and the Bloomberg Dollar Index fell -0.36%. CNY has appreciated versus the dollar from 7.32 on November 2nd to today’s 7.13 CNY per USD. Usually, this would be a good tailwind for Chinese stocks, though it has yet to materialize.
Mainland investors were hoping for more domestic consumption support from the Central Economic Work Conference (CEWC EWC ) yesterday, which has weighed on sentiment. Remember yesterday’s loan and financing data release, which occurred after the market’s close and missed expectations? No one seemed to mention/notice the data improved month over month as the beatings will continue until morale improves.
The Shanghai, Shenzhen, and the Hang Seng Index all opened higher by +0.37%, +0.41%, and +1.18%, respectively, but slid throughout the day. It was a relatively quiet night except for President Xi finishing his trip to Vietnam amid rumors he will attend Davos in January. There has been an apparent change in the tone and tenor of China’s rhetoric toward the West, particularly the US. Trust must be rebuilt, but something has changed for those willing to notice.
After the market close, both Beijing and Shanghai reduced their down payment ratios for first-time home buyers to 30%, the second home purchase down payment ratio was lowered to 50%, and the mortgage rate was lowered.
