China shares gain on latest policy steps, dollar buoyed by Fed view
Updates prices at 0257 GMT
By Kevin Buckland
TOKYO, Oct 18 (Reuters) - China stocks rose on Friday as the central bank officially launched a swap facility aimed at boosting the equity market, although shares elsewhere in Asia were mixed in the wake of data confirming a slowdown in the world's second-largest economy.
The dollar hovered close to an 11-week high versus major peers on Friday after robust U.S. economic data allowed for a more patient path of Federal Reserve easing.
The U.S. currency was also supported by recent market contemplation of a potential election victory for Donald Trump, whose proposed tariffs and immigration policies are seen as inflationary. That helped gold push to a new record high.
Mainland Chinese blue chips .CSI300 were up 0.68% as of 0257 GMT, reversing earlier declines, after the People's Bank of China said the new Securities, Fund, and Insurance Swap Facility would start operating that day. The central bank alsourged key financial institutions to swiftly implement policies to support the economy and capital markets.
China's central bank governor also flagged more interest rate cuts in a speech to a financial forum.
Beijing unveiled the biggest stimulus since the pandemic late last month, but investors have been frustrated by the lack of details offered by Chinese authorities in subsequent briefings.
China's economy expanded 0.9% in the third quarter from the previous quarter, data showed Friday, slightlybelow expectations for a 1.0% rise. The previous quarter's growth was revised lower to 0.5%.
The world's second-largest economy grew 4.6% year-on-year in July-September, beating a 4.5% forecast in a Reuters poll but slowing from 4.7% in the second quarter.
"In a general sense, this is very backward looking data," said Alvin Tan, head of Asia FX strategy at RBC Capital Markets.
"It basically confirms that the economy has been decelerating, ... which is why there is this stimulus that was launched," he said. "That's the one that people are really focused on."
Hong Kong's Hang Seng .HSI traded 1.14% higher, getting an additional lift from technologyshares following solid earnings a day earlier at Taiwanesechipmaker and Nvidia supplier TSMC 2330.TW. Taiwan's equity benchmark .TWII climbed 2.62%.
Japan's Nikkei .N225 added 0.38%, helped by a weaker yen versus the dollar.
However, Australia'sbenchmark .AXJO sagged 0.89% and South Korea's KOSPI .KS11 slipped 0.44%.
The dollar index =USD, which measures the currency against six rivals including the yen and euro, eased to 103.68, after climbing to 103.87 on Thursday for the first time since Aug. 2.
Overnight, data showed U.S. retail sales rose a stronger-than-expected 0.4% last month after an unrevised 0.1% gain in August. A separate report showed initial jobless claims dropped by 19,000 to a seasonally adjusted 241,000 last week.
Traders now see73.6% odds of 50 basis points of interest rate cuts over the Fed's remaining two meetings this year, down from 85.6% odds a day earlier, according to CME Group's FedWatch Tool.
The 10-year U.S. Treasury yield US10YT=RR stood at 4.0945%, little changed from Thursday, when it jumped 8 basis points.
"Robust retail sales data provided the Federal Reserve with greater flexibility in its rate path," said James Kniveton, senior corporate FX dealer at Convera.com.
"Unlike the euro zone, the Fed does not need to adjust policy to support the economy."
The European Central Bank cut rates by a quarter point on Thursday, as expected, and four sources close to the matter told Reuters that policymakers were likely to cut again in December.
The euro EUR=EBS added 0.08% to$1.0839 after sliding to$1.0811 in the previous session, the lowest since Aug. 2.
The dollar eased 0.18% to 149.95 yenJPY=EBS, after jumping to 150.32 yen overnight, piercing the psychological 150 barrier for the first time since Aug. 1.
Democratic presidential candidate Kamala Harris' edge over Republican Trump has narrowed from a late September lead of seven points to just three, Reuters/Ipsos polling shows. And the rivals are statistically tied in the seven crucial battleground states that will decide the race.
"The USD (is) well-positioned to extend its rally as it continues to price in a Donald Trump election victory," said Tony Sycamore, an analyst at IG.
Gold XAU= rose to a new record high of $2,711.90.
Crude oil futures inched higher on Friday, supported by a surprise drop in U.S. oil inventories and simmering Middle East tensions, but prices were headed for their biggest weekly loss in more than a month on worries of lower demand.
Brent crude futures LCOc1 rose 0.35%, to $74.71 a barrel, while U.S. West Texas Intermediate crude CLc1 was up 0.45% at $70.99 a barrel.
World FX rates YTD http://tmsnrt.rs/2egbfVh
Asian stock markets https://tmsnrt.rs/2zpUAr4
Reporting by Kevin Buckland; Additional reporting by Rae Wee; Editing by Jacqueline Wong, Jamie Freed and Kim Coghill
Relaterade tillgångar
Senaste nytt
Ansvarsfriskrivning: XM Group-enheter tillhandahåller sin tjänst enbart för exekvering och tillgången till vår onlinehandelsplattform, som innebär att en person kan se och/eller använda tillgängligt innehåll på eller via webbplatsen, påverkar eller utökar inte detta, vilket inte heller varit avsikten. Denna tillgång och användning omfattas alltid av i) villkor, ii) riskvarningar och iii) fullständig ansvarsfriskrivning. Detta innehåll tillhandahålls därför uteslutande som allmän information. Var framför allt medveten om att innehållet på vår onlinehandelsplattform varken utgör en uppmaning eller ett erbjudande om att ingå några transaktioner på de finansiella marknaderna. Handel på alla finansiella marknader involverar en betydande risk för ditt kapital.
Allt material som publiceras på denna sida är enbart avsett för utbildnings- eller informationssyften och innehåller inte – och ska inte heller anses innehålla – rådgivning och rekommendationer om finansiella frågor, investeringsskatt eller handel, dokumentation av våra handelskurser eller ett erbjudande om, eller en uppmaning till, en transaktion i finansiella instrument eller oönskade finansiella erbjudanden som är riktade till dig.
Tredjepartsinnehåll, liksom innehåll framtaget av XM såsom synpunkter, nyheter, forskningsrön, analyser, kurser, andra uppgifter eller länkar till tredjepartssajter som återfinns på denna webbplats, tillhandahålls i befintligt skick, som allmän marknadskommentar, och utgör ingen investeringsrådgivning. I den mån som något innehåll tolkas som investeringsforskning måste det noteras och accepteras att innehållet varken har varit avsett som oberoende investeringsforskning eller har utarbetats i enlighet med de rättsliga kraven för att främja ett sådant syfte, och därför är att betrakta som marknadskommunikation enligt tillämpliga lagar och föreskrifter. Se till så att du har läst och förstått vårt meddelande om icke-oberoende investeringsforskning och riskvarning om ovannämnda information, som finns här.
