Chinese Stocks Poised for Biggest Monthly Advance; Hang Seng Fall

Chinese stocks headed for their biggest monthly advance since March amid speculation policy makers will help support equities and that a selloff on Wednesday was overdone.

The Shanghai Composite Index was poised for a 2.1 percent increase in July as it slipped 0.1 percent as of 10:09 a.m. local time, while a gauge of Chinese stocks in Hong Kong has advanced 3.6 percent since June 30. Great Wall Motor Co. climbed toward a six-month high Friday in Shanghai after its first-half results beat estimates. Cnooc Ltd., the nation’s biggest offshore oil and gas producer, fell in Hong Kong after projecting a loss.

The advances in July coincide with a rally in Asian equities amid speculation global policy makers will offer stimulus to offset any fallout of the U.K.’s vote to leave the European Union. Chinese stocks in Hong Kong and Shanghai are poised for a second monthly gain, even as concern that the nation’s regulators will restrict cash from wealth management products from moving into equities tempered the increase this week.

The Shanghai equity gauge, which tumbled the most in six weeks on Wednesday on concern about the curbs on WMPs, traded at 2,990.10. The Hang Seng China Enterprises Index of mainland companies in Hong Kong fell 0.6 percent, while the benchmark Hang Seng Index fell 0.7 percent. The MSCI Asia Pacific Index has jumped 4.7 percent in July.

Source: Bloomberg              

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Japanese Shares Gain on Yen; Apple Suppliers Advance in Tokyo

Japanese shares rose for the first time in four days as the yen weakened. Apple Inc. suppliers in Tokyo jumped after the iPhone maker’s sales beat estimates.

The Topix index added 1 percent to 1,319.85 as of 9:06 a.m. in Tokyo, with all but one of its 33 industry groups rising. The Nikkei 225 Stock Average climbed 1.2 percent. The yen lost 0.3 percent to 104.99 on Wednesday after touching 103.99 yesterday.

Japanese currency and equity traders are keeping a close eye on reports ahead of the Bank of Japan’s policy decision on July 29. The Nikkei newspaper reported on Wednesday that top BOJ officials are looking at multiple proposals including cutting interest rates further into negative territory, expanding government bond buying beyond 80 trillion yen ($ 763 billion) annually and expanding purchases of other assets such as exchange-traded-funds. The Federal Reserve also meets this week.

Futures on the S&P 500 Index added 0.2 percent on Wednesday. The underlying measure was little changed Tuesday ahead of the Fed’s policy decision. U.S. housing data showed the biggest gain in new-home sales in eight years, spurring optimism in the economy and raising speculation the Fed may strike a more hawkish tone on rates.

Source: Bloomberg             

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