Asia Nov 19th
Asia Pacific stocks were mostly up on Friday morning after U.S. shares closed at a record high during the previous session. However, cautious over Chinese shares listed in the U.S. capped gains.
Japan’s Nikkei 225 were up 0.44% by 9:04 PM ET (2:04 AM GMT). Data released earlier in the day said that the national consumer price index (CPI) and national core CPI both grew 0.1% year-on-year in October.
South Korea’s KOSPI was up 0.39% while in Australia, the ASX 200 inched down 0.03%.
Hong Kong’s Hang Seng index slid 1.35%.
China’s Shanghai Composite edged up 0.15% and the Shenzhen Component was up 0.21%. Chinese shares listed in the U.S. fell after e-commerce firm Alibaba (NYSE:BABA) Group Holding Ltd. (HK:9988) slashed its outlook for fiscal 2022 revenue, citing intensifying competition, dwindling consumer spending, and regulatory curbs. Video-streaming platform operator Bilibili (NASDAQ:BILI) Inc. (HK:9626) also saw its shares fall.
Moves in U.S. Treasuries were minimal. However, the latest Treasury bill auctions indicated that investors are starting to demand more yield to hold the shortest-maturity debt as the debate on whether to lift or suspend the U.S. debt ceiling returns.
Global shares remain near record levels, as corporate earnings were strong in the U.S. particularly. The strong growth also continues to ease concerns about inflation, monetary policy tightening, and an economic recovery from COVID-19 that is slowing down in China.
“You can come up with a very strong list of reasons why you shouldn’t be invested,” Citi Private Bank regional head of investments for North America Kristen Bitterly told Bloomberg.
“The best way to combat that is really with the record-high profitability that we’ve seen and to recognize that not all parts of the market are created equal.”
The next six months could also see the S&P 500 hitting 5,200, an advance of about 11%, from current levels, in an environment of reduced monetary stimulus and outperformance by cyclical companies, according to UBS Global Wealth Management Chief Investment Officer Mark Haefele.
Fed Vice Chairman Richard Clarida and Fed Bank of San Francisco President Mary Daly will also speak at the Asia Economic Policy Conference later in the day.
Meanwhile, the U.S. House of Representatives will vote on President Joe Biden’s economic plan, valued at around $2 trillion. The bill must also pass through the Senate, where the outcome is less certain.
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