Asia Shares Up On Fed Rate Bets, China's Yuan Also Rises
Asian shares rallied on Monday, Jan. 9, 2023, as hopes for less aggressive US rate hikes and the opening of China's borders bolstered the outlook for the global economy, Wayne Cole reported for Reuters.
Photo Insert: The Taiwan Stock Exchange
MSCI's broadest index of Asia-Pacific shares outside Japan rose 2.0% to a five-month top, with South Korean shares gaining 2.2%. Chinese blue chips added 0.7%, while Hong Kong shares climbed 1.4%.
China's yuan also firmed to its highest since mid-August under 6.8000.
Japan's Nikkei was closed for a holiday but futures were trading at 26,215, compared with a cash close on Friday of 25,973. S&P 500 futures added 0.2% and Nasdaq futures 0.3%. EUROSTOXX 50 futures gained 0.6%, while FTSE futures firmed 0.3%.
Earnings season kicks off this week with the major US banks, with the Street fearing no year-on-year growth at all in overall earnings.
"Excluding Energy, S&P 500 EPS (earnings per share) is expected to fall 5%, driven by 134 bp of margin compression," wrote analysts at Goldman Sachs. "Entering reporting season, earnings revision sentiment is negative relative to history.