- In Asia, equity markets traded mixed as China's economic woes dampened risk appetite, despite the fact that American stocks climbed overnight.
- Hong Kong stocks fell for a second day, causing an Asian market index to reverse earlier gains. Japan and Australia saw higher benchmark indexes. Contracts for US equities changed little.
- Investors see no easy way out of China's economic recession, as new symptoms of financial stress emerge among the country's dollar-bond issuers. Analysts are shifting their focus to prospective measures from the Politburo meeting later this month, saying Beijing's plan to stimulate consumption still lacks actions to effectively help the recovery.
- The yen fell for a second day as BoJ's Governor Ueda stated that monetary easing will continue until its price goal outlook changed. The offshore yuan has dropped to its lowest level in a week.
- The dollar strength index remained stable. The New Zealand dollar rose in early trading, and rates rose as inflation decreased less than expected. The 10-yr yield on Australian Treasuries fell 4 bps to 3.93%.
- Notwithstanding the yen's fall, the BoJ is unlikely to change its monetary policy at its meeting next week, according to Shoki Omori, chief desk strategist at Mizuho Securities. BoJ's Governor Ueda is likely to maintain his forward guidance focus and will not modify significant policy without guiding markets, he noted.
- Markets in the US closed near session highs on Tuesday, as Bank of America and Morgan Stanley earnings boosted bank shares and a rise in equities connected to artificial intelligence resumed. The S&P 500 and the tech-heavy Nasdaq 100 both rose for the second day, while the Dow Jones Industrial Average exceeded, rising more than 1% for a seventh day of gains, its longest winning streak in more than 2 yrs.
