(Bloomberg) — Asian stocks rose for a third day, buoyed by advances in Japanese shares and as investors placed fresh bets on Chinese tech companies.
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Hong Kong equity benchmarks outperformed in Asia with gains around 2%, boosted by BYD Co. shares at a record after it unveiled a new charging system for electric cars. Japanese gauges were up more than 1%. That’s after US stocks climbed for a second day, as industrial and energy shares rallied.
China’s world-beating stock rally may get a fresh catalyst from a slew of tech earnings, with Xiaomi Corp. and Tencent Holdings Ltd. set to report this week. While Beijing’s briefing on bolstering consumption was seen as disappointing by some, Tuesday’s market reaction suggests investors remain positive over the outlook. BYD’s tech advancement also reinforces a narrative of the global competitiveness of Chinese companies.
Things are pointing to a slowdown in the US, but in China “the direction of travel is very much looking to stimulate growth,” Richard Harris, founder and CEO of Port Shelter Investment Management, said on Bloomberg TV. “So I’m very much in the corner of saying, we’re looking at the great pivot from the US to China at the moment.”
The yield on 10-year Treasuries was little changed after slipping one basis point to 4.30% on Monday. The Bloomberg Dollar Spot Index edged higher. US equity futures slipped in Asia trading.
In Japan, shares of the biggest trading houses rallied after Berkshire Hathaway Inc. increased its stake. Financial stocks also gained along with elevated yields ahead of the Bank of Japan’s decision on Wednesday. The central bank is expected to keep the policy rate at 0.5%, according to economists surveyed by Bloomberg.
“The BOJ must be closely watching steep gains in yields,” said Junki Iwahashi, senior economist at Sumitomo Mitsui Trust Bank. “So close attention will be warranted on Ueda’s comments about that when he speaks at the briefing,” he said, referring to the BOJ governor.
In other news, President Donald Trump said Chinese leader Xi Jinping would visit Washington soon, amid brewing trade tensions between the world’s two largest economies.
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The S&P 500 and the Nasdaq 100 rose about 0.6% each on Monday, as gains in small-cap stocks outweighed a slide in the Magnificent Seven cohort.
