(Bloomberg) — Asian shares traded broadly higher amid lingering concerns over China’s economy. US markets are shut for the Presidents’ Day holiday.
Most Read from Bloomberg
A gauge of Asia Pacific shares ticked upwards and was set to climb for a third session. China mainland benchmark CSI 300 Index rebounded from earlier losses in the first day of trading after the Lunar New Year break, while Chinese shares in Hong Kong remained on the back foot. The stocks had struggled in the early hours despite buoyant travel and tourism data that suggested consumption revved up even as the broader economy struggles with deflation and a property crisis.
Traders are now looking for further policy support across China’s monetary and fiscal space, in addition to a cut in the reserve requirement ratio already undertaken. Chinese Premier Li Qiang on Sunday called for “pragmatic and forceful” action to boost the nation’s confidence in the economy.
“For the Hang Seng China Enterprises Index, I think it’s normal to see a pull back after three consecutive sessions of gains, and there is some profit taking in Hong Kong market today,” said Dickie Wong, executive director of research at Kingston Securities Ltd. “The next thing to watch is a potential lowering of the five-year loan prime rate,” Wong added, referring to China’s reference rate for mortgages with data set to come out on Tuesday.
Elsewhere, Japan’s Tokyo Stock Price Index rose, with bank shares leading the gains. The Nikkei-225 Stock Average was little changed with the index remaining near its record close in 1989. Contracts for Europe equities fell, but those for the US climbed marginally higher after the S&P 500 Index dropped 0.5% on Friday on signs that inflation in the US is “stickier” than expected.
Story continues
There was no cash trading of Treasuries in Asia due to the US holiday. They fell on Friday, with two-year yields up seven basis points to 4.65% after the producer price index rose on a sizable jump in costs of services.
The yen strengthened to around 150 per dollar with the greenback…
..
