Global Market: Asian Shares Hold Gains, European Markets Open Higher

In the wake of a series of measures introduced by Beijing to stimulate market sentiment, Asian shares managed to retain their weekly gains on Thursday. 

This positive trend occurred as investors prepared for a week-long holiday. Notably, Japan’s Nikkei surged to a 34-year high following the Bank of Japan’s announcement ruling out rapid rate hikes.

European Markets Poised for a Positive Start:

European markets are anticipated to open higher, with EUROSTOXX 50 futures showing a 0.1% increase. Meanwhile, U.S. futures remained relatively flat.

Asian Shares Market Highlights:

• Japan’s Nikkei surged 2.1% to reach its highest level in 34 years, buoyed by a 10% jump in SoftBank Group’s shares.
• The Japanese yen depreciated by 0.3% against the dollar, while 10-year yields eased to 0.695%.
• Hong Kong’s Hang Seng index stood out with a 1.3% decline, dragging MSCI’s broadest index of Asia-Pacific shares 0.3% lower.
• Alibaba shares fell by 6.6% after the company reported third-quarter revenue below estimates.
• China’s mainland shares maintained gains before the Lunar New Year holiday, with the Shanghai Composite index up by 1% for the week.

Market Analysis:

Investors responded positively to leadership changes within China’s market regulator, signaling a proactive stance from authorities. 

Additionally, data revealed a significant drop in China’s consumer price index (CPI) in January, which is attributed to the negative base effect of the Lunar New Year. However, analysts anticipate CPI growth to rebound in the coming months.

Global Market Overview:

• Wall Street closed at a record high, driven by strong earnings from companies like Chipotle Mexican Grill and Ford Motor.
• Federal Reserve officials reiterated their cautious approach to interest rate cuts, with markets still pricing an 80% probability of a rate cut by May.
• Treasury yields remained relatively stable, with strong demand observed during the Treasury Department’s record sale of $42 billion in 10-year notes.
• Oil prices extended gains following Israel’s rejection of a ceasefire offer from Hamas, with Brent crude rising to $79.53 a barrel and U.S. crude reaching $74.16 per barrel.
• Spot gold prices remained flat at $2031.72 amid market fluctuations.