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China’s stocks take a break after Monday’s rally vaulted market value past US$10 trillion as traders put Covid-19 in rear view mirror

China’s stocks take a break after Monday’s rally vaulted market value past US$10 trillion as traders put Covid-19 in rear view mirror



a close up of a street: Hong Kong’s financial district is deserted as the approach of Typhoon Nesat on 29 September 2011 emptied the streets. Photo: SCMP


© SCMP
Hong Kong’s financial district is deserted as the approach of Typhoon Nesat on 29 September 2011 emptied the streets. Photo: SCMP

China’s stocks declined in early trading, taking a respite after rallying by the most in three months, as investors assessed the strength of the economic recovery and the prospect of refresh US stimulus packages. Trading was halted in Hong Kong due to an approach by the tropical storm Nangka.

The Shanghai Composite Index dropped 0.5 per cent to 3,342.18 in early trading on Tuesday. It jumped 2.7 per cent a day earlier on expectations that the recovering in the Asian nation will gather pace and President Xi Jinping will unveil further reform measure in his trip to Shenzhen to mark the 40th anniversary of the economic zone in southern China on the doorsteps of Hong Kong.

China’s stocks top US$10 trillion as economy shakes off 2015 rout, Covid-19

The combined market values of the companies trading on the Shanghai and Shenzhen exchanges rose to US$10.04 trillion on Monday, surpassing the US$10 trillion mark for the first time since 2015. China is the world’s second-largest equity market after the United States.

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China is due to release the September data on exports and imports on Tuesday and the data on third-quarter economic growth will be released on October 19. Other markets in Asia were mixed as the US was still deadlocked over a new round of stimulus measures.

Hong Kong’s securities market has been halted from trading in the morning session after the local weather agency raised the typhoon signal to the third-highest level on early Tuesday, the market operator said in a statement.

The Hong Kong Observatory issued the No

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EM Investors Start to Put Vote Jitters Behind Them

EM Investors Start to Put Vote Jitters Behind Them

(Bloomberg) — Emerging-market investors are beginning to factor in a victory for Joe Biden in next month’s election, a likely boon for stocks and bonds.

Citigroup said the worst is over for developing-nation assets and Morgan Stanley is betting volatility will ease as there’s more clarity on the outcome of the vote. On Friday, Biden’s chances of winning the Electoral College rose to a record 85.1%, according to the latest run of poll aggregator FiveThirtyEight’s election forecasting model.

“A Biden victory should be good news for emerging markets if it means a multilateral approach, a more rules-based approach to international relations,” said Marcelo Carvalho, head of global emerging markets research at BNP Paribas in London. “That should reduce policy uncertainty.”



graphical user interface, chart: Emerging-market bonds, stocks rise as Biden leads in U.S. polls


© Bloomberg
Emerging-market bonds, stocks rise as Biden leads in U.S. polls

MSCI Inc.’s gauge of emerging-nation equities reached its highest since January on Friday, marking its best weekly performance in 18. The CBOE Emerging Markets ETF Volatility Index, which tracks the expected volatility in MSCI’s benchmark, fell 11% on Friday, the most in a month. Dollar-denominated government bonds, meantime, posted their first weekly gain since early September, a Bloomberg Barclays index shows.

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It’s a contrast to the risk aversion of the past month, when rising infections of Covid-19 and an increasingly tense election campaign pushed up volatility and weighed on sentiment. Confidence is rising now that investors feel they have more clarity on the outcome of the Nov. 3 vote, said Eric Baurmeister, head of emerging-market debt at Morgan Stanley Investment Management Inc. in New York.

“The thing markets hate the most is uncertainty,” Baurmeister said in an interview. “Risk assets have definitely responded positively to the lead of Biden and Harris increasing.”

A weaker dollar and better stimulus prospects if there is a Democratic sweep of

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Emerging-Market Investors Start to Put Vote Jitters Behind Them

Emerging-Market Investors Start to Put Vote Jitters Behind Them

Emerging-market investors are beginning to factor in a victory for Joe Biden in next month’s election, a likely boon for stocks and bonds.

Citigroup said the worst is over for developing-nation assets and Morgan Stanley is betting volatility will ease as there’s more clarity on the outcome of the vote. On Friday, Biden’s chances of winning the Electoral College rose to a record 85.1%, according to the latest run of poll aggregator FiveThirtyEight’s election forecasting model.

“A Biden victory should be good news for emerging markets if it means a multilateral approach, a more rules-based approach to international relations,” said Marcelo Carvalho, head of global emerging markets research at BNP Paribas in London. “That should reduce policy uncertainty.”

Emerging-market bonds, stocks rise as Biden leads in U.S. polls

MSCI Inc.’s gauge of emerging-nation equities reached its highest since January on Friday, poised for its best week in 18. Dollar-denominated government bonds, which slumped as much as 17% earlier this year, are about to post their first weekly gain since early September, a Bloomberg Barclays index shows.

It’s a sharp contrast to the risk aversion of the past month, when rising infections of Covid-19 and an increasingly tense election campaign pushed up volatility and weighed on sentiment. Confidence is rising now that investors feel they have more clarity on the outcome of the Nov. 3 vote, said Eric Baurmeister, head of emerging-market debt at Morgan Stanley Investment Mgmt Inc. in New York.

“The thing markets hate the most is uncertainty,” Baurmeister said in an interview. “Risk assets have definitely responded positively to the lead of Biden and Harris increasing.”

A weaker dollar and better stimulus prospects if there is a Democratic sweep of the presidency and both houses of Congress would also boost stocks, Morgan Stanley equity strategist Jonathan Garner wrote in a note.

READ: Citi Says Worst of U.S. Election

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