Japan’s stocks remained constant while those in Hong Kong, Australia, and mainland China declined. US equity futures fell as well after Friday’s Wall Street rise powered by technology. For a holiday, the markets are closed in Malaysia and Singapore.
The focus is on the US consumer pricing statistics that will be released soon. It is anticipated that inflation will have decreased to 3.3% year over year in October from 3.7% in the previous month. Ahead of Joe Biden and Xi Jinping’s meeting on Wednesday, there are fresh indications that US-China relations are warming up. Beijing is reportedly considering lifting a ban on Boeing Co. aircraft.
Helen Zhu, chief investment officer at Nan Fung Trinity HK Ltd., spoke on US-China ties in an interview with Bloomberg TV. “All of these things are starting to line up showing that the two sides do have intent to make this look like a better outcome,” Zhu said. “We’re not hoping for a fairytale ending, a long-term fix, or a love fest, but there might be a smooth transition leading up to the US election next year.”
Following Friday’s sell-off of short-dated Treasuries, government bonds issued in Australia and New Zealand slightly declined. The long end of the curve was not affected by such drops. While the 10-year yield increased by three basis points, the 30-year yield remained essentially constant.
On Monday, the dollar and Treasuries remained stable. Oil continued its three-week downward trend as worries about global demand and the reduction of the risk premium associated with the Israel-Hamas conflict grew.
October producer prices in Japan were lower than the previous month. On Monday, India will issue its most recent report on inflation; China may possibly disclose new data on lending and money supply.
Shares of ANZ Group Holdings Ltd. dropped following the bank’s CEO’s warning in its most recent earnings report about an uncertain economic climate. Higher interest rates helped the group’s profits.