The CSI 300 index’s rise of 0.4% and the Shanghai Composite’s rise of 0.5% on Tuesday were not big by most measures. But they were the biggest rise in almost a month, and enough to lift the indexes up from five- and four-year troughs, respectively.
In Hong Kong, the benchmark Hang Seng and Hang Seng tech index jumped 2.7% and 3.7%, respectively, for their best days in two months, but they too are coming from low bases.
The Hang Seng is flirting with levels it was at when Hong Kong returned to China from Britain in 1997. Before Tuesday’s spike, Hong Kong tech stocks were down 20% this month.
Japan’s equity bull run took a breather on Tuesday after the Bank of Japan stood pat at its policy meeting but appeared to err on the hawkish side, while the yen eventually gave back its initial gains and drifted down to 148.50 per dollar.
There was something for everyone, however, in Governor Kazuo Ueda’s comments, as he noted that inflation seems to be heading back toward the bank’s 2% target in a sustainable manner. If this narrative prevails, expect the Nikkei to resume its upswing and the yen and bond yields to remain under pressures.
Meanwhile, Bank Negara Malaysia is widely expected to leave its overnight policy rate unchanged at 3.00% on Wednesday and hold it there until at least the end of next year.
