Week in Review
- Asian equities were mixed but mostly higher for the week on hopes for a US Fed pause at the upcoming meeting as Hong Kong and Japan outperformed while Mainland China was slightly lower on the week.
- The Caixin Services PMI was released on Monday, indicating above-expectations expansion in the services sector with a reading of 57.1.
- China’s accommodative monetary policy was on display this week as the People’s Bank of China (PBOC), China’s central bank, lowered the rate that banks must pay on their deposits, freeing up more capital for lending and setting the stage for another reserve requirement cut.
- News surfaced on Tuesday that US Secretary of State Antony Blinken may travel to China as soon as next week, another green shoot for US-China relations.
Friday’s Key News
Asian equities were mostly higher overnight except for Thailand, India, and the Philippines. It was a quiet night on the news front.
Internet names were slightly higher in Hong Kong overnight. Meanwhile, we saw short volume fall again after a rise last week. E-Commerce earnings have been stellar, which is contributing to the slow comeback in the names. Shorts are getting squeezed by better-than-expected results, especially from Trip.com on the recovery of travel in China.
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