Stephen Innes
SPI Asset Management
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.
SPI Asset Management provides forex, commodities, and global indices analysis, in a timely and accurate fashion on major economic trends, technical analysis, and worldwide events that impact different asset classes and investors.
Our publications are for general information purposes only. It is not investment advice or a solicitation to buy or sell securities.
Opinions are the authors — not necessarily SPI Asset Management its officers or directors. Leveraged trading is high risk and not suitable for all. Losses can exceed investments.
Recommended Content
Editors’ Picks
AUD/USD post moderate gains on solid US data, weak Aussie PMI
The Australian Dollar registered solid gains of 0.65% against the US Dollar on Thursday, courtesy of an upbeat market mood amid solid economic data from the United States. However, the Federal Reserve’s latest monetary policy decision is still weighing on the Greenback. The AUD/USD trades at 0.6567.
EUR/USD recovers to top end of consolidation ahead of Friday’s US NFP
EUR/USD drove back to the top end of recent consolidation on Thursday, recovering chart territory north of the 1.0700 handle as market risk appetite regains balance heading into another US Nonfarm Payrolls Friday.
Gold recoils on hawkish Fed moves, unfazed by dropping yields and softer US Dollar
Gold price clings to the $2,300 figure in the mid-North American session on Thursday amid an upbeat market sentiment, falling US Treasury yields, and a softer US Dollar. Traders are still digesting Wednesday’s Federal Reserve decision to hold rates unchanged.
Ethereum may sustain trading inside key range, ETH ETFs to be delayed until 2025
Ethereum is beginning to show signs of recovery on Thursday despite a second consecutive day of poor performance in Hong Kong's spot Ethereum ETFs. Bloomberg analyst James Seyffart has also shared that a spot Ethereum ETF may not happen in the US in 2024.
NFP: The ultimate litmus test for doves vs. hawks
US Nonfarm Payrolls will undoubtedly be the focal point of upcoming data releases. The estimated figure stands at 241k, notably lower than the robust 303k reported in the previous release and below all other readings recorded this year.