Chinese Shares Close at 10-Week Highs
The Shanghai Composite gained 11.4 points or 0.32% to 3529.01 on Tuesday, closing at 10-week highs, with traders digesting reports that the Biden administration in the US takes inflation very seriously but added that it was Federal Reserve’s responsibility to deal with its fluctuations. Investors also assessed a statement by Fed’s Kaplan that the US central bank could raise rates in 2022 and that the economy may grow by 6.4% this year. On the trade front, China announced Monday another extension of tariff exemptions for a total of 79 products imported from the US. The new extension will kick in on May 19th and is set to expire on December 25th, 2021. Meantime, the Hang Seng Index added 368.6 points or 1.31% to 28562.69, extending gains for the 3rd consecutive session.
Malaysia Shares Stay in Positive Territory
The FTSE KLCI added 3 points or 0.2% to 1,586 in late deals on Tuesday, trading at a near two-week high, as market participants were upbeat after Fed’s Clarida predicted that the US economy could grow by 6% or 7% this year, which would be “the fastest pace growth in 35 years”. Turning to the bond market, US treasury yields on Monday fell for the third straight session as concerns over a spike in inflation eased after data showed retail sales stalled in April. On the pandemic front, there were 4,446 new virus cases in Malaysia on Monday, with a record daily high fatalities of 45. In the region, meanwhile, Hong Kong reportedly will tighten travel and quarantine requirements for several countries, including Malaysia Singapore, and Japan, starting from Friday. Traders now await minutes of the US Federal Reserve’s April meeting released on Wednesday. Axiata Group Bhd added 1.4%, while Petronas Dagangan went up 0.3%.
South African Stocks at 1-Week High
The FTSE/JSE All Share Index traded higher around 67,917 on Tuesday, its highest level since May 10th, tracking its global peers, as optimism around the reopening of the US and European economies outweighed fears of a pickup in virus cases and new restrictions in Asia. Domestically, South Africa on Monday launched a large-scale immunization drive, targeting around five million people aged over 60 by the end of June, while some parts of the country are already grappling with a third wave of Covid-19. On the corporate front, South Africa’s biggest mobile phone operator, Vodacom, upgraded its medium-term operating growth target to mid-to-high-single digit on Tuesday, after reporting a 3.7% jump in full-year earnings in the financial year to 31 March of 2021.
Stocks in Euro Area Hit 13-year High
EU50 increased to a 13-year high of 4041