Asian Stocks Rise on Property Relief in China, Attention Shifts to Sino-U.S. Talks

A woman wearing a protective mask, amid the COVID-19 outbreak, walks past an electronic board displaying stock indices for Japan and other countries outside a brokerage house in Tokyo, Japan, September 21, 2021. REUTERS / Kim Kyung-Hoon

HONG KONG, Nov. 16 (Reuters) – Asian stocks were mostly higher on Tuesday, with relief in China’s real estate sector supporting sentiment as investors also closely watched a key meeting between US President Joe Biden and the Chinese leader Xi Jinping.

Biden and Xi Jinping warmly opened their closely watched talks, with the two leaders stressing their responsibility to the rest of the world to avoid conflict. Read more

The largest MSCI Asia-Pacific stock index outside of Japan (.MIAPJ0000PUS) rose 0.27% to a 2.5-week high, while Japan’s Nikkei (.N225) gained 0 , 39%.

“Investors will be watching the first Biden-Xi summit closely to see if the exchange results in an improvement in an already strained relationship,” said David Chao, global market strategist for Asia-Pacific (ex-Japan) at Invesco . “While no breakthrough is expected, this is still a positive first step forward.”

Chao added that Asian markets this week are also reacting to better-than-expected economic data from China, released on Monday, and the situation in the mainland real estate market.

“So far we haven’t seen a loss of trust in some developers and the government has come out more forcefully to make sure owners are protected,” he said.

Chinese blue chips (.CSI300) rose 0.4% and the Hong Kong benchmark (.HSI) rose 0.7%, helped by real estate stocks

A Mainland China Developer Index listed in Hong Kong (.HSMPI) rose 3%. However, shares of Kaisa Prosperity (2168.HK), a real estate services unit of struggling developer Kaisa Group (1638.HK), fell 14% after the bell as trading resumed a day after the company said its parent company’s liquidity issues will not impact operations. . L4N2S70BD

US equity futures, S&P 500 e-minis, rose 0.11% and Nasdaq futures gained 0.17%.

Wall Street closed little, as rising Treasury yields dampened appetite for tech stocks, but boosted interest in financials.

Benchmark U.S. Treasury yields rose nearly five basis points to a three-week high on Monday, as companies rushed to sell debt before liquidity dwindled during the holidays and before the US government’s sale of new 20-year bonds on Wednesday.

They edged down on Tuesday and were last at 1.6094%, but still up sharply from a one-month low of 1.42% reached a week ago.

Rising yields also helped the dollar, which remained strong at a 16-month high against a basket of its peers.

Investors’ assessment of different responses to rising inflation from global central banks is also critical for currency markets.

On Monday, European Central Bank President Christine Lagarde pushed back market bets on tightening monetary policy, saying doing it now to curb inflation could stifle the eurozone’s recovery.

This brought the euro down to near its 16-month low of $ 1.354. The pound was at $ 1.3359 near a year low and the dollar was at 114.17 against the yen, looking ahead of the October four-year high of 114.69.

Recent data showing a strong US economy has also helped the dollar, which also casts doubt on the Fed’s view that price pressures will be transient, fueling speculation that interest rates will be lifted sooner. than previously thought.

Britain will release its September labor market report on Tuesday, which CBA analysts “could make or break the cause of a rate hike this year.”

Later today, US retail sales, trade prices and industrial production for October are also expected, giving another clue to the health of the economy.

In the oil markets, US crude rose 0.37% to $ 81.18 per barrel. Brent crude rose 0.5% to $ 82.48 a barrel.

Gold was flat, spot gold was at $ 1,862 an ounce, just above Monday’s five-month high of $ 1,870.

Reporting by Alun John; Editing by Sam Holmes

Our standards: Thomson Reuters Trust Principles.


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