Asian shares slip despite China rate cut

Asian shares fell on Monday despite a rate cut by China’s central bank. Wall Street futures rose after President Joe Biden announced he would not run for re-election.

The People’s Bank of China reduced short-term rates by 10 basis points, aiming to lower borrowing costs and bond yields.

The CSI 300 index of blue-chip stocks dipped 0.8 per cent. MSCI’s broadest index of Asia-Pacific shares outside Japan lost another one per cent, adding to last week’s three per cent decline.

Markets in Japan, South Korea, and Taiwan all saw losses exceeding one per cent.

This week promises a packed schedule of corporate earnings reports, with tech giants Tesla and Alphabet kicking things off. The tech sector is expected to see strong year-over-year earnings by 17 per cent, potentially outpacing the broader market.

The Federal Reserve’s preferred inflation measure and GDP figures are due later this week, with markets anticipating a benign outcome that could solidify expectations for a September rate cut.

In currency markets, the dollar retreated slightly, while gold prices remained near record highs at $2,407 an ounce. Oil prices edged higher amid ongoing tensions in Gaza. Brent gained 22 cents, while US crude rose 36 cents.

Attribution: Reuters