|Day's Range||25,849.78 - 26,299.84|
|52 Week Range||21,139.26 - 29,174.92|
The Zacks Analyst Blog Highlights: JD.com, Tencent, Alibaba and Sohu.com
(Bloomberg) -- HSBC Holdings Plc, which draws more than two-thirds of its pretax income from Hong Kong, slumped as advisers to U.S. President Donald Trump discussed a potential move to punish banks in the city and destabilize the currency peg to the dollar.Europe’s largest financial institution was named as a potential target, Bloomberg News reported, citing people familiar with the matter. U.S. Secretary of State Michael Pompeo last month singled out Peter Wong, the bank’s Asia-Pacific chief executive officer, for signing a petition supporting “Beijing’s disastrous decision to destroy Hong Kong’s autonomy.”“Disruption to the currency peg and dollar funding, with HSBC reporting in U.S. dollars, could erode revenue and accelerate material changes in its dual listing and structure,” Bloomberg Intelligence analysts Jonathan Tyce and Francis Chan wrote on Wednesday.“HSBC’s to-do list remains considerable, though a wait-and-see approach -- with November’s U.S. election the due-date -- may be adopted for the latest peg and funding turbulence,” they wrote.London-based HSBC has been walking a political tightrope as it seeks to expand in China in a bid to boost profits, shifting away from struggling operations in Europe and the U.S. The bank last month endorsed China’s new security law.The U.S. clearing license is vital to HSBC’s global operations and the bank is one of the largest international lenders operating in America. HSBC recently hired James Forese, a former senior executive at Citigroup Inc., to its board as it looks to revamp its global business including its underperforming U.S. unit.HSBC is also the largest note-issuing bank in Hong Kong, putting it at more risk than Standard Chartered Plc. and BOC Hong Kong Holdings Ltd. should the U.S. limit their ability to buy dollars.HSBC announced last month it would revive a massive cost reduction plan that had been put on halt due to the virus. The bank plans to shrink U.S. retail, French and non-ring fenced U.K. exposure, and cut about 35,000 roles globally.In a statement on its official WeChat account in June, the bank pledged to continue to invest and support the Chinese economy after speculation in local media that its massive restructuring plan would mean an exit from China.Some top advisers to President Donald Trump want the U.S. to undermine the Hong Kong dollar’s peg to the U.S. currency to punish China for recent moves to chip away at Hong Kong’s political freedoms, according to people familiar with the matter. The proposal, however, hasn’t been elevated to the senior levels of the White House, and faces strong opposition from others in the administration who worry such a move would only hurt Hong Kong banks and the U.S., not China, said the people.HSBC fell about 4.3% in Hong Kong, making it the biggest drag on the benchmark Hang Seng Index. The bank’s stock declined as much as 4.3% in early London trading, extending this year’s loss to 36%. A Hong Kong-based spokeswoman declined to comment on the U.S. report.(Adds more detail from Bloomberg Intelligence in fifth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Asian stocks dithered on Wednesday as an increase in new coronavirus cases in some parts of the world cast doubts over the economic recovery while oil prices eased on oversupply fears. MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> were a tad lower after hitting a 4-1/2 month high just on Tuesday. Australian shares <.AXJO> were down 0.4% as were indexes for New Zealand <.NZ50> and South Korea <.KS11>.
The rally comes after a major state-owned financial newspaper said that China requires a bull market to build strength, reviving memories of the bull run of 2015.
Asian stocks were set for a mixed open on Wednesday, as an increase in new coronavirus cases in some parts of the world cast doubts over the economic recovery, leading some investors to cash in on recent gains ahead of earnings season. Australian S&P/ASX 200 futures <YAPcm1> lost 0.50% in early trading, while Japan's Nikkei 225 futures <NKc1> added 0.11%, and Hong Kong's Hang Seng index futures <.HSI> <HSIc1> rose 0.39%. The United States reported tens of thousands of new coronavirus infections, prompting New York to expand its travel quarantine for visitors from three more states, while Florida's greater Miami area rolled back its reopening.
The Australian stock market closed lower as state border closures sparked fear of a second wave that could damage the country’s economic rebound.
(Bloomberg) -- Hong Kong stocks joined the rest of the world in bull market territory Monday, after a more than $1.1 trillion rebound.The Hang Seng Index jumped 3.8%, extending its rally from March’s low to 21%. Tencent Holdings Ltd. and Hong Kong Exchanges & Clearing Ltd. have contributed 42% of the benchmark’s gains during the period, according to data compiled by Bloomberg. Sino Biopharmaceutical Ltd., the gauge’s biggest gainer of 2020 as of June 30, and Tencent were the only two Hang Seng members to fall Monday while underperforming sectors in Hong Kong -- including autos, commodities and financials -- soared.Mainland investors have been buying record amounts of Hong Kong equities, while sentiment has been fueled by a heavy activity of initial public offerings and secondary listings of U.S.-listed Chinese companies, triggering inflows into new-economy shares and HKEX. Meanwhile, mainland stocks have surged to multiyear highs.Despite the recent jump, the Hang Seng Index needs to rise another 10% to reach pre-pandemic levels. Only nine of the gauge’s 50 stocks are higher for 2020.However, Jefferies predicts the index should reach 30,000 by year-end, thanks to factors including interest rates and no evidence of outflows despite the city’s economy being in a year-long recession. Hong Kong’s economy suffered its biggest-ever contraction in the first quarter, and the government expects the city’s economy to shrink between 4% and 7% in 2020.A few technical bullish signs are still flashing in the market. The Hang Seng is still trading near the lowest level versus the global peers since 2003, while it is about 50% cheaper than the S&P 500 on a price-to-earnings basis, the biggest discount since at least 2005.It took longer for Hong Kong stocks than others globally to climb out of the brutal virus-driven selloff, as political worries have been an additional overhang to the city’s stocks. Beijing last week implemented a law to enhance national security in response to months of protests.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- China’s tycoons are flooding Hong Kong’s exchange with $20 billion worth of new listings.While the city’s rich are preparing for a worst-case scenario amid a controversial national-security law, major mainland billionaires are coming in. The latest to do so: William Ding of NetEase Inc. and JD.com Inc.’s Richard Liu, whose companies completed secondary listings there last month. They follow Jack Ma, whose Alibaba Group Holding Ltd. stock issuance in November was the city’s largest since 2010.Together, the three moguls’ firms have raised $20 billion from share sales in the former British colony, and that may be just the start of a new wave of listings by mainlanders.“Chinese billionaires’ tech companies are helping the capital market in Hong Kong for a pivotal change and secure its Asia financial hub status,” said Edward Au, managing director of the southern region at Deloitte China. “The city’s stock exchange is also trying to make it a more appealing destination for new-economy companies.”The national-security law that was approved on Tuesday is threatening to erode Hong Kong’s judicial independence from the mainland, a key part of the city’s appeal to international companies and investors. The U.S. has already started to make it harder to export sensitive American technology to Hong Kong, and the House of Representatives passed a bill imposing sanctions on banks that do business with Chinese officials involved in cracking down on pro-democracy protesters.While Chinese billionaires have myriad reasons for pursuing listings there -- including a less welcoming political environment in the U.S. -- their choice of the city over alternatives on the mainland may help ease concerns that the former British colony risks losing its status as a financial center.Chinese tech tycoons with companies trading in the city now have a combined net worth of $182 billion, more than the 10 richest people in Hong Kong, according to the Bloomberg Billionaires Index. For them, Hong Kong is becoming increasingly appealing as Chinese companies listed in the U.S. face growing scrutiny and potential delistings following an accounting scandal at Luckin Coffee Inc. and mounting tensions between the world’s two largest economies.JD.com and NetEase have raised a combined $7 billion with their secondary listings last month -- almost two-thirds of the total for Hong Kong in the first half of the year, according to data compiled by Bloomberg. Deloitte expects that as many as six Chinese companies currently traded in the U.S. will choose the city for a second listing by year-end. Robin Li’s Baidu Inc. is among those weighing that option.The city eased listing rules in 2018 to attract companies such as smartphone maker Xiaomi Corp. and Meituan Dianping, China’s largest on-demand food delivery service. The move could eventually reshape the composition of the benchmark Hang Seng Index, according to Deloitte’s Au. In May, the index manager announced new criteria to allow companies such as Alibaba to be included in the gauge.“The influx of these companies will greatly increase the representation of new-economy companies in Hong Kong, adding vibrancy and diversity to the market,” said Louis Lau, partner at KPMG China’s capital markets advisory group. “The continued listing of mega-sized Chinese firms also reinforces Hong Kong’s position as Asia’s financial hub.”(Updates with new U.S. bill in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
A measure of stocks across the globe rose for a fourth straight day on Thursday after June U.S. payrolls grew by a record 4.8 million, but investors also flocked to the safe-haven dollar and U.S. Treasuries on concerns about surging COVID-19 cases in many U.S. states. Several states, along with some other parts of the world, are reversing or pausing reopenings to tackle a recent surge in infections, leaving analysts worried about another sell-off in financial markets if the damage mounts.
MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> inched 0.2% higher, led by a 0.8% rise in Chinese blue chips <.CSI300>. Sentiment had been boosted by signs that China's factories are slowly gathering steam, with the Caixin/Markit manufacturing PMI rising to 51.2, compared with expectations for 50.5. Hong Kong police said they arrested a man holding a pro-independence flag in the first apparent use of new security laws that were imposed by China on its freest city late on Tuesday evening.
Asian stocks are advancing on the final trading day of June, after a positive session on Wall Street, with market sentiment buoyed further by China’s better-than-expected June PMI readings. The data makes for encouraging signs that the world’s second largest economy is well on its way in overcoming the pandemic.
A global stocks index rose on Tuesday and marked its largest quarterly gain since 2009 as investors continued to look for signs of an economic recovery while shrugging off data showing a rising number of COVID-19 cases. World shares <.MIWD00000PUS> rose 18.7% this quarter, the biggest quarterly gain in 11 years, but are still down more than 7% so far this year due to a slump of 34% between Feb. 12 and March 23.
China said Monday it will impose visa restrictions on U.S. individuals with “egregious conduct” on Hong Kong-related issues, mirroring U.S. sanctions.
The United States is imposing visa restrictions on Chinese Communist Party officials believed responsible for restricting freedoms in Hong Kong.
China stocks closed the shortened three-session week on a firmer note, as investors cheered Beijing’s latest reforms in its capital markets.
Jun.23 -- Mandy Lui, head of wealth and retail distribution for Greater China and Southeast Asia at Barings, discusses the outlook for China's economy, stocks and credit. She speaks with Tom Mackenzie and David Ingles on "Bloomberg Markets: China Open."
Japanese shares edged lower on Monday as worries about the growing number of coronavirus infections across the world kept investors on edge.
Global stock markets meandered on Thursday as a continued rise in coronavirus cases dashed hopes of a swift recovery from the pandemic-induced economic slump and drove demand for safe-haven currencies such as the dollar and Japanese yen. Cleveland Federal Reserve Bank President Loretta Mester said it could take a year or two for the U.S. economy to return to pre-pandemic levels, with the gross domestic product declining by 6% in 2020 and the unemployment rate still around 9% by year's end. At least 29 million Americans are collecting unemployment checks, a sign of the tough road ahead.
Global equity markets closed little changed on Wednesday as a rally on economic and vaccine hopes faded, while fresh coronavirus outbreaks and rising geopolitical tensions in Asia boosted demand for the dollar and safe-haven debt. Optimism over a quick economic recovery has been tempered by more global cases of the coronavirus, including an outbreak in Beijing and a rising tide of infections in U.S. states that are reopening their economies. New cases hit a record level in Oklahoma just days before President Donald Trump's expected campaign rally in Tulsa.
(Bloomberg) -- Stocks rose for a third day as optimism over a recovering U.S. economy overrode concern that coronavirus cases are worsening in locations ranging from Texas to China. Treasury yields rose and the dollar strengthened.The S&P 500 climbed 1.9%, with energy, health care and materials leading all 11 industry sectors higher in the biggest gain in more than a week. The benchmark index initially surged after data showed U.S. retail sales jumped by the most on record. Federal Reserve Chairman Jerome Powell said the U.S. economy may be bottoming out during his semi-annual policy report to Congress.“Right now there’s more cross currents than I can ever remember,” said John Porter, chief investment officer of equities at Mellon Investments. “The weight of where investors are focusing day-to-day really swings wildly from fears of the second wave, concerns about escalating tensions with China, complete vacuum of visibility on earnings.”Stocks briefly pared gains after Florida reported that new cases rose to the highest level since the pandemic began and Texas saw hospitalizations surge. Elsewhere, Beijing shut its schools on concern about new infections.“It shows you that the market is still extremely reactive in both directions to any virus-related news, especially on the upside when it’s good news,” said Liz Ann Sonders, chief investment strategist at Charles Schwab & Co.Government stimulus has been a key feature of the global equities rally, despite soaring unemployment and signs that a second wave of the virus has started to emerge. Now there are signals that more economic support is on the way.The Trump administration is preparing a nearly $1 trillion infrastructure proposal as part of its push to spur the world’s largest economy back to life, according to people familiar with the plan. On top of that, the Fed will start buying individual corporate bonds.“The Fed is delivering on its promise to do whatever it takes,” said Todd Jablonski, chief investment officer at Principal Portfolio Strategies. “They can’t however offset the volatility that comes with risk assets as the number of cases picks up.”Elsewhere, oil climbed above $38 a barrel in New York amid signs of improving demand and declining production.These are some key events coming up:Policy decisions from the Bank of England and the Swiss National Bank are due later this week.The New York Stock Exchange may allow a limited number of market makers to return to its historic trading floor Wednesday.These are some of the main moves in markets:For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Consumers are helping to push the economic recovery following the COVID-19 pandemic in China. The latest numbers show big-ticket purchases were up last month, while unemployment ticked lower. Pramol Dhawan, PIMCO’s head of emerging markets portfolio management, joins Yahoo Finance to discuss.
China’s industrial output expanded 4.4% in May from a year earlier but the gain was less than expected, official data showed on Monday.