Stocks creep toward quarterly gain as bank fears subside

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Asia's stock markets held recent gains on Thursday, as fears of a banking crisis receded and investors weighed whether a break-up of Chinese conglomerate Alibaba signals Beijing's regulatory storm aimed at tech companies might finally be clearing.

, which is heading for a 6% quarterly gain, slipped 0.8% on Thursday. U.S. and European stock futures were broadly steady.

The U.S. dollar was firm, particularly against the safe-haven Japanese yen as investors wound back some of the positions built up in the last couple of weeks.As the dust settles on a wild and volatile ride after Silicon Valley Bank's collapse unleashed fears of a broader banking crisis, the winners appear to be bonds and large tech companies that tend to benefit when interest rates fall.

" in periods of true fear, investors run to the U.S. dollar; in March, the euro strengthened against the U.S. dollar. And there are no signs of funding pressures in U.S. money markets or cross-currency swaps," they said. "We have repeatedly emphasised that 2023 is the first time in four years that economic, regulatory, and COVID policies have been aligned in a pro-growth, pro-business fashion," Morgan Stanley analysts said.

 

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