Goldman Sachs and HSBC are saying that funds and global investors are rotating out of US and Japanese stocks
To reposition on the Hong Kong stock market which appears to offer significantly better opportunity. Hong Kong listed companies mainly do business across Asia with limited interference from the Chinese government. Source: Bloomberg
Chinese stocks catching a very strong bid Monday.
The most-followed China stock index globally (MSCI China) is set to enter a bull market (note though it’s still a long way back to the top) Source: David Ingles, Bloomberg
Intervention? At 9:30 PM ET, the Japanese Yen weakened to 160 against the US Dollar for the first time since 1990.
Exactly 2.5 hours after the headlines came out, the ratio just crashed from 160.20 to 156.50. That's a ~2.5% swing in one of the biggest currencies in the world in a matter of minutes. Clearly, something is happening here and it comes just days after the Bank of Japan left rates unchanged. Did someone just intervene? Source: The Kobeissi Letter
Japan's currency official declined to comment regarding possible intervention
Japan's Masato Kanda says "No comment for now" when asked whether Tokyo had intervened in the currency market Today following a sharp move in the market that sliced more than 2% off the dollar-yen exchange rate shortly after the Japanese currency went over 160.
Source: Bloomberg
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China is buying/importing gold like there is no tomorrow
Source: Willem Middelkoop
In case you missed it... U.S. 10-year government bonds yield 4.70%, about two percent more than Vietnam's 2.92%.
Source: Jeff Weniger
State Fund added China ETFs to lift sentiment during rout
According to Bloomberg, China’s sovereign wealth fund has “likely bought at least USD 43 bn of onshore exchange-traded funds in the first quarter” vs. USD 6.8 bn in the second half of 2023. The extent of the buying provides insight into the government willingness to stabilize the markets during challenging periods.
China stocks: still a long way to come back to the top...
Source: Bloomberg
