June 29, 2022

China’s elated sentiment in the property sector and upcoming meeting between U.S. President Joe Biden and Chinese leader Xi Jinping has led Asian shares to trade fairly high on Tuesday.

According to global market strategist for Asia Pacific (ex-Japan) at Invesco, David Chao, investors are keeping a close eye on the first Biden-Xi summit to see if the exchange will lead to any amelioration in an already fraught relationship.

Market summary

• MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.27% to a 2-1/2 week high.
• Japan’s Nikkei index traded high at 0.39%.
• The Chinese blue chips traded high at 0.4%.
• And the Hong Kong benchmark due to property stocks traded 0.7% higher.
• Hong Kong listed mainland Chinese developers index rose by over 3%.
• However, property services unit of financially embattled developer Kaisa Group, Kaisa Prosperity’s shares fell 14% after the company reported its parent’s liquidity issues would not impact operations.
• U.S. stock futures, the S&P 500 e-minis rose 0.11%, and Nasdaq futures rose 0.17%.
• Rising Treasury yields in Wall Street dented appetite for technology stocks, although boosting interest in financials.
• The U.S. Treasury yields benchmark rose nearly five basis points to a three-week high on Monday.
• The treasury yields however inched lower on Tuesday and were last at 1.6094%, although still up sharply since a one-month low of 1.42% hit one week ago.
• The rising treasury yields also helped the dollar, which stayed strong at a 16-month high against a basket of its peers.
• The euro lowered to near a 16-month low at $1.354 as European Central Bank President Christine Lagarde on Monday, pushed back on market bets for tighter monetary policy. And also mentioned to rein in inflation could choke off the euro zone’s recovery.
• The pound recorded at $1.3359 near a year low.
• And the dollar against the yen was at 114.17, within a sight of October’s four-year high of 114.69.
• In oil markets, U.S. crude rose 0.37% to $81.18 a barrel.
• While Brent crude rose 0.5% $82.48 per barrel.
• Gold traded steady, as spot gold was at $1,862 an ounce just off Monday’s five month high of $1870.