Asia Stock Markets Breathe Easy After Nasdaq Surge

10/03/2021 Chinese shares rallied from a slump on Tuesday, Hong Kong advanced, Japan fluctuated and Australian shares on the backfoot. U.S. treasury yields steadied below their recent peaks. The pullback in treasury yields emboldened investors to buy the recent dip in growth stocks, which have been weighed down by concerns about valuations. The Nasdaq 100 advanced almost 4% on a revival of higher-valuation stocks, such as Tesla which jumped 20%. The move snapped a rotation into value shares based on optimism about an economic reopening aided by fresh stimulus and vaccines. Bitcoin traded around $54,000. Oil extends declines on strong dollar, and despite the dip; crude is expected to resume its upward trend this week. Tencent up 2.80%. IG Futures on the Top-40 are 121 firm.

The JSE closed 0.34% firmer on Tuesday to 68,655.96 points, while the rand broke a four-day losing streak after data showed that SA’s GDP grew better-than-expected in the fourth quarter of 2020. Top-40 gained 0.30% on the day. Stats SA data showed that the economy grew at a seasonally adjusted and annualised 6.3% in the fourth quarter, better than the 5.6% expansion predicted.

NEWS:
• Transnet of South Africa Plans to Scrap GE, Bombardier Contracts
• BofA Says Massmart ‘Recovery on Track;’ Stock Hits 13-Month High
• S. Africa Virus-Hit Economy Shrank Most in 100 Years in 2020
• Goldman Says Prosus and Naspers Are at Attractive Entry Points
EQUITY PREVIEW:
• Sappi Raised to Buy at Investec; PT 60 rand
• Motus Acquires 49% Stake in Synapt Proprietary; No Terms
• MTN Group to Report Results; Shares Up 26.1% YTD: Preview
EARNINGS:
• Growthpoint Properties Ltd. (GRT SJ)
• MTN Group (MTN SJ)
• Quilter Plc (QLT LN)
ECONOMIC DATA:
• 12pm: 1Q BER Business Confidence, est. 42, prior 40
CORPORATE EVENTS:
• Annual General Meetings: PPH SJ
• Earnings Calls: QLT LN
EX-DIV CALENDER, 10 Mar 2021:
• AMS SJ, ANG SJ, EMI SJ, GFI SJ, KIO SJ

EU/UK/US
European stocks managed a positive finish to the session on Tuesday, after the OECD upgraded its growth forecasts for the UK and global economy. The OECD said it now believes the global economy will grow by 5.6% in 2021, and by 4% in 2022; versus earlier forecasts made in December for growth of 4.2% this year and 3.7% next year. The pan-European Stoxx 600 was 0.76% higher, Germany’s Dax meanwhile added 0.4% and the FTSE100 gave up some of its earlier gains but still closed up 0.17%. Data showed German exports unexpectedly rose in January buoyed by robust trade with China.

Wall Street closed firmly in the green on Tuesday following a mixed session for major indices a day earlier. The Dow was up 0.10%, while the S&P 500 was 1.42% firmer and the Nasdaq saw out the session 3.69% stronger at 13,073.82. Tech stocks bounced back from heavy losses recorded over the last few sessions on Tuesday as the yield on the 10-year Treasury note fell to 1.59% after trading as high as 1.62% on Monday. U.S index futures flat this morning.

ASIA
Asian stocks bounced back from a two-month low on Wednesday after bond yields eased following a well-received auction and as Chinese shares found a footing after recent steep falls on policy tightening worries. MSCI’s ex-Japan Asia-Pacific shares index rose 0.4%. The CSI300 index of mainland China’s rose 1.37% in early trade, while Hong Kong gained 0.45%, the Nikkei adding 0.14% to its performance, while the Australian’s ASX200 was 0.55% on the backfoot relative to its regional counterparts.
Brent futures on the backfoot 0.87% at $66.97, below the %70 mark.