- Chinese stocks are aiming higher amid the restart of offshore listings.
- The USD Index has turned sideways after dropping to near 103.00 as investors surrendered the risk-aversion theme.
- Oil prices are struggling to extend gains above $78.50 ahead of China’s inflation data.
Markets in the Asian domain are demonstrating mixed responses as S&P500 witnessed a sell-off on Wednesday, eased the majority of gains earned in Tuesday’s session. Sell-off in the US equities was tickled by weakness in the technology stocks. Alphabet Inc. was heavily dumped by the market participants after Google Chatbot Bard Artificial Intelligence (AI) delivered an incorrect answer to an online advertisement.
S&P500 futures have shown some decent gains in the Asian session as investors are digesting concerns about further policy tightening by the Federal Reserve (Fed), portraying a risk-on market mood. The US Dollar Index (DXY) has turned sideways after dropping to near 103.00 as investors surrendered the risk-aversion theme.
At the press time, Japan’s Nikkei225 eased 0.33%, ChinaA50 jumped almost 1%, Hang Seng gained 0.40%, and Nifty50 eased 0.40%.
Chinese stocks are escalating ahead of the release of the Consumer Price Index (CPI) data, which will release on Friday. The annual CPI is seen higher at 2.1% while producers are expected to display deflation in the prices of goods and services settled at factory gates.
The expectations of more stimulus by the Chinese administration and the People’s Bank of China (PBOC) to spurt economic growth after dismantling pandemic controls, will escalate inflation ahead, similar to inflationary pressures in the western countries which are battling against stubborn inflation after the pandemic period.
Chinese state media on Thursday cautioned against risks in chasing local ChatGPT-concept stocks, while domestic artificial intelligence (AI) companies urged investors to be rational after their soaring share prices caught regulators' attention, as reported by Reuters.
A revival of offshore listing of Chinese companies as Hesai Technology is going public in the United States will improve the risk appetite of Chinese investors.
Indian stocks are facing pressure after a two-day run-up as the Reserve Bank of India (RBI) has not trimmed inflation projections below 5% in any quarter of CY2023. This has opened doors for further hikes in the repo rate ahead.
On the oil front, oil prices are showing a loss in the upside momentum after reaching to $78.50. The oil price is likely to display a power-pack action after China’s inflation data. A decline in the inflation figures could call for more rate cuts by the PBoC ahead.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stabilizes near 1.0800 as trading action turns subdued
EUR/USD holds steady near 1.0800 on Thursday and remains on track to end the day in negative territory following upbeat macroeconomic data releases from the US. The action in financial markets turn subdued as trading volumes thin out heading into Easter holiday.
GBP/USD extends sideways grind above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth help the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.