Asia open: Riding the bull of optimism
|Outside of the Tech ramp, local investors will take an interest in China's housing data.
Investors in Asia are entering Friday's trading session riding the bull of optimism, buoyed by the U.S.-led surge in mega tech stocks that has fueled a global stock market boom.
The remarkable ascent witnessed across global markets on Thursday, driven by Nvidia's impressive 16.5% surge, is expected to set a positive tone for Asian markets on Friday. Investors will closely monitor market dynamics and potential profit-taking activities amidst bullish sentiment.
And not to be overlooked, Chinese stocks have been on an impressive upward trajectory lately despite being far from their all-time highs.
After hitting five-year lows a few weeks ago, they have rebounded soundly and are currently experiencing their longest winning streak in eons.
According to the charts, If the CSI 300 index closes in positive territory on Friday, it will mark its best run in over six years.
The improved sentiment towards China can be mainly attributed to the measures implemented by authorities in Beijing aimed at revitalizing economic activity and supporting markets, particularly the beleaguered housing market.
Among these measures is a reduction in the benchmark 5-year lending rate, which is crucial in determining mortgage rates. While it's too early to assess the effectiveness of this week's rate cut, investors will take an interest in Chinese house price data scheduled for release on Friday.
Over the past two years, house prices in China have consistently declined year-on-year. A reversal to growth in these prices would instill confidence among investors that the worst of the property sector downturn has passed and that the economy is on a more stable footing.
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