Asian shares lost early steadiness and Chinese stocks got off to a weak start on Thursday, while upbeat U.S. economic data helped the dollar gain as investors globally opted for caution due to Greece’s standoff with its creditors. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.13 percent following yet another weak opening in China’s benchmark indexes. Tokyo’s Nikkei climbed 1.1 percent thanks to a weaker yen, while South Korea’s Kospi rose 0.3 percent.
Investors expected investors appetite for risk to be sapped in coming months by uncertainty over whether Greece can step back from an economic abyss after its debt default to the International Monetary Fund, and doubts over its future in the eurozone. “We are shaping up for a bumpy ride in the summer as the ongoing Greek crisis means investors are adopting a risk-on, risk-off approach toward risky assets,” said Tai Hui, chief markets strategist at JP Morgan Asset Management in Hong Kong.
Chinese markets got off to a rocky start with the Shanghai index down more than 1 percent in opening trades after a near 5 percent slide yesterday, despite regulators announcing a raft of market friendly measures since last week, including an interest rate cut over the weekend. Investors elsewhere fixed their eyes on Athens. Greek Prime Minister Alexis Tsipras has called a referendum on Sunday that could determine his country’s future in Europe. On Wednesday, Tsipras urged Greeks to reject an international bailout deal, souring hopes of any breakthrough.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.