Despite weaker-than-anticipated Chinese economic data, Asia markets mainly held firm on Tuesday as investors expected policy support from the world’s second-largest economy.
Emerging markets were supported by expectations that the dollar would weaken. Still, investors were concerned about important U.S. government debt-ceiling negotiations with less than two weeks before the government might run out of money.
Megabank optimism lifted Japan’s broad Topix (.TOPX) 0.48% to 2,124.92, its best since August 1990.
On Tuesday, China’s industrial output rose 5.6% from a year earlier, up from 3.9% in March and the fastest pace since September 2022. Reuters analysts expected a 10.9% gain. read on
Retail sales are below estimates, highlighting a sluggish post-COVID rebound.
Kerry Craig, a global market strategist at JPMorgan, said the market expects authorities to try to stabilize the economy and restore corporate confidence and growth.
MSCI’s broadest Asia-Pacific ex-Japan index rose 0.3%.
“The market is thinking the Fed is done, and the U.S. dollar is going to come down a little bit to support the markets in Asia,” Craig added. China’s stock index is up 1.19%.
The Nikkei (.N225) rose 0.71% to 29,838.01. However, Australia’s S&P/ASX 200 index (.AXJO) fell 0.14% early.
The dollar index lost 0.039%, with the Japanese yen rising 0.12% to 135.96 per dollar.
Tuesday saw 10-year notes drop 1.5 basis points to 3.4906%.
U.S. crude increased 0.39% to $71.39, while Brent rose 0.43% to $75.55. Gold fell 0.2% to $2,016.75 an ounce.
