Asian shares up but investors wary of China
Asian shares went up on Monday as the dollar hit a two-week low. The rise followed US Fed Chairman Jerome Powell’s dovish tone at the Central Bank’s Jackson Hole symposium. However, investors are still cautious about prospects in China.
MSCI’s broadest index of Asia-Pacific shares outside Japan jumped 0.45%, while Japan’s Nikkei climbed up 0.28%.
Smaller markets in Taiwan and Singapore made 0.45% and 0.77% gains, respectively.
In China, blue chips fell 0.20%, and Hong Kong’s benchmark fluctuated on either side of flat.
Companies in China have recently been targeted by a chain of regulatory crackdowns, scaring away investors and leading the Hong Kong benchmark to 2021 lows earlier in the month.
Meanwhile, in his prepared remarks at the symposium, Powell gave no indication on cutting asset purchases besides saying it could be “this year”.
This dovish tone boosted US benchmark Treasury yields and caused the greenback’s drop, with both trends continuing until Monday morning trade in Asia.