Asia shares the bounce mood when it changes, the feeling is reversed by Reuters

By Wayne Cole

SYDNEY (Reuters) – Asian stocks were enjoying a relief rally on Monday as Wall Street records and easing Chinese policies helped ease some of the latest concerns about global growth, although there were plenty of potential mistakes this week.

In the U.S., inflation data may frighten Federal Reserve Chairman Jerome Powell on Wednesday and Thursday, where markets will be hyper-sensitive to any debate over early cuts.

Profit Season JP Morgan, Goldman, Citigroup (NYSE 🙂 and Wells Fargo (NYSE 🙂 among these allegations.

China has released figures on economic growth, trade, retail sales and industrial production, among concerns that could underestimate its sudden easing of policies last week.

“Expectations about China’s forecasts have been sweet over the past month, with some disappointing partial data has worsened the outlook for a pandemic recovery from peak growth,” Westpac analysts said in a note.

“However, annual growth is expected to be above 8.0% and, in the second half of 2022, the quarterly growth momentum should confirm the trend.”

For now, investors were happy that last week’s downturn exploded in New York, sending Wall Street higher and warming bull circulation in bonds.

On Monday, MSCI gained the broadest Asia-Pacific stock index 0.9% outside of Japan, after falling 2.3% last week.

Bounce 2.3%, and far from the two-month high hit on Friday, South Korea added 0.9%. China’s blue chips rose 1.7%.

Nasdaq futures and little changed after recovering on Friday.

Yields on U.S. 10-year notes were 1.362%, down as low as 1.25% on Friday from eight consecutive sessions of price gains. [US/]

“The U.S. rate hike in July was significant,” analysts at NatWest Markets said. “No one perfectly explains a driver’s move … but fears of global growth and the Covid Delta variant have raised new questions about inflation.”

That risk outrage backed the U.S. dollar until it made a profit on Friday. It finally hit 92,147 in a currency basket after hitting a three-month high of 92,844 points last week.

Yen’s shelters also lost ground to $ 110.18 per dollar, and the euro reached a value of $ 1.1871 in the previous week’s $ 1.1780.

Christine Lagarde, president of the European Central Bank, unexpectedly captured the markets on Monday, saying the bank will change its policy guidelines at its next meeting and show that it is serious about boosting inflation.

The ECB’s new strategy allows for inflation in excess of the 2% target when rates are close to the bottom.

The overall risk-taking atmosphere helped improve gold last week and was trading at $ 1,805 an ounce compared to June’s $ 1,749.

Oil prices stabilized on Monday after a week of falling inventories as U.S. inventories tightened. Sellers are still unsure about the supply forecasts after OPEC broke talks about the cuts. [O/R]

It fell 4 cents to $ 75.51 a barrel, and $ 74.56 unchanged.