Written by Stella Chiu
SYDNEY (Reuters) – Asian stocks were mixed on Thursday, with Chinese shares outperforming on strong Chinese trade data, while the yen weakened as Japanese authorities hinted at possible currency intervention. After three days of decline, it stabilized.
European markets were expected to start trading calmly with EuroSTOXX50 futures flat, but the FTSE 100 rose 0.1% ahead of the Bank of England's interest rate decision in the second half of World Day.
The prospect of a June interest rate cut is in the spotlight after the Riksbank cut overnight, with the divergence between Europe and the US Federal Reserve as investors wait for US consumer inflation data due on Wednesday. became apparent.
MSCI's broadest index of Asia-Pacific stocks outside Japan fell 0.2%, but for the first time in 15 months, after Fed Chairman Jerome Powell reiterated his intention to ease policy by the end of the year. It remained at a level not far from its high.
According to Chinese customs statistics, imports in April increased by 8.4% compared to the same month last year, exceeding the expected 4.8% increase, and exports also returned to growth, exceeding expectations and boosting economic growth.
Chinese stocks continued their gains, with blue chips rising 0.9% and Hong Kong's Hang Seng Index rising 1.2%. News that Hangzhou, a major city in eastern China, will lift all restrictions on home purchases in the depressed real estate sector, a key pillar of domestic demand, also boosted sentiment.
Real estate stocks rose 2.5% as a result.
“In terms of imports, there was a concentration of power in a few categories. In our view, the main theme is the goal of competing in the AI ​​race,” said Lin Song, ING's chief economist for Greater China. , the import of data processing related products added: Equipment and integrated circuits were strong.
“Import demand is likely to remain resilient, but given that exports face a higher level of risk in the coming months, trade-driven growth will continue to decline from the second quarter onwards. We expect the contribution to be small.
Elsewhere, Japan's Nikkei stock average was down 0.2%, reversing earlier gains. Australia's stock market, which is rich in resources, fell by 1.1%, and South Korea's stock market also fell by 1%.
Nasdaq stock futures fell 0.2%, dragged down by ride-hailing company Uber's 5.7% overnight decline after the company issued lower forecasts after an unexpected quarterly loss.
The Japanese yen stabilized at 155.60 yen to the dollar after declining for three consecutive sessions. It rose more than 3% last week, with market participants warning that Japanese authorities may intervene twice to halt a sharp decline. [FRX/]
Masato Karita, Japan's top currency diplomat, on Thursday said there was no limit on foreign exchange reserves for currency intervention, making traders nervous, while minutes of the Bank of Japan's April meeting said policymakers This indicates that the yen has become overwhelmingly hawkish, which supports the stability of the yen.
However, Japan's real wages in March fell 2.5% from the same month last year, the second consecutive year of decline, and policymakers are arguing that they should refrain from raising wages aggressively.
In the U.S. Treasury market, yields were little changed after rising slightly the previous day, and are likely to slow down ahead of next week's U.S. inflation report. The yield on the two-year note remained at 4.8511%, while the yield on the 10-year note was at 4.5062%, rising 3 basis points overnight to 4.4920%.
Oil prices rose on Thursday, rebounding from a two-month low in the previous session. Brent futures rose 0.4% to $83.91 per barrel, while U.S. crude oil rose 0.5% to $79.40 per barrel. [O/R]
Gold prices rose 0.3% to $2,316.23 per ounce.
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(Reporting by Stella Qiu; Editing by Christian Schmollinger and Christopher Cushing)