Investment Insights

CIO Viewpoints

A shares have lagged H shares much, why we think A share may catch up?

Daily Insights

Focus of the Day
  • MSCI Asia Pacific Index returned to positive month-to-date, with technical indicators strengthening

Other Commentaries

  • STOXX 600 extended gains to six sessions on stronger-than-expected Q1 European corporate earnings; Trump signed an executive order easing tariffs for the local auto industry; US March JOLTS job openings missed forecasts

Market Analysis

FX Markets Analysis

Latest Technical Highlights

JPY - Uptrend ↗

Support / Resistance

vs HKD 5.3508 / 5.6222

vs USD 138.00 / 145.00

The Bank of Japan will hold a rate meeting on Thursday (1st), and keeping the interest rate unchanged is close to the market consensus. However, facing high inflation, the market estimates that the Bank of Japan will maintain a hawkish stance, which is expected to be beneficial to the yen. Technically, USD/JPY's next support at 138

Legends

Uptrend ↗  Sideways →  Downtrend ↘

Pertaining to historical trend technical analysis only and do not reflect any forecasts.

Provided by Hang Seng Investment Services Limited

Stock Markets View

US equities rebounded over consecutive sessions, supported by easing trade tensions and solid corporate earnings. Market are now focused on upcoming US GDP, PCE inflation, and employment data releases

  • ECB President Christine Lagarde highlighted the drag of trade tensions on European economic performance. Markets now anticipate a potential rate cut in June and are closely watching Q1 GDP and April inflation data
  • The recent pullback in the US dollar has supported a rebound in Asian equities. Investors remain focused on progress in trade negotiations between Asian economies and the US, as well as corporate earnings expectations
  • The recent decline in the US dollar has bolstered Latin American currencies and regional equities. However, signs of slowing economic growth in some economies suggest continued volatility across equities, currencies, and bonds
  • The Politburo meeting reaffirmed policies to support the property and equity markets, expand domestic demand, and implement timely rate cuts and reserve requirement ratio cuts. These policies are broadly in line with market expectations and are expected to support equities
Legends

Positive - Expect that the particular asset class potentially may perform well relative to the relevant major global benchmark(s) in the long run
Neutral - Expect that the particular asset class potentially may perform in line relative to the relevant major global benchmark(s) in the long run
Cautious - Expect that the particular asset class potentially may not perform well or in line relative to the relevant major global benchmark(s) in the long run

Provided by Hang Seng Investment Services Limited

Bond Markets View

  • With easing risk-off sentiment, US Treasury yields have retreated. Market participants are focused on upcoming data releases, such as March PCE inflation and the April employment report. Shorter-dated US Treasuries are likely to remain relatively stable
  • US corporates are beginning to report earnings, with markets closely monitoring forward guidance to assess the impact of tariff policies on corporate performance
  • China has reiterated its commitment to market stability. With room for further policy easing, authorities are expected to strengthen accommodative signals, improving financing conditions for regional issuers
  • US high-yield credit spreads have narrowed significantly from recent highs. However, yields have fallen below 8%, reducing carry returns compared to earlier levels

 

  • The market is optimistic about potential rate cuts from the People’s Bank of China in Q2. Additionally, the Politburo has emphasized stabilizing the property market. Investors remain focused on the pace of recovery in the housing sector
  • The decline in US Treasury yields has supported gains in emerging market bonds. However, persistent high inflation in some Latin American countries may constrain central banks’ ability to adopt supportive monetary policies
Legends

Positive - Expect that the particular asset class potentially may perform well relative to the relevant major global benchmark(s) in the long run
Neutral - Expect that the particular asset class potentially may perform in line relative to the relevant major global benchmark(s) in the long run
Cautious - Expect that the particular asset class potentially may not perform well or in line relative to the relevant major global benchmark(s) in the long run

Provided by Hang Seng Investment Services Limited

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