China Stocks Rally Tested After Stimulus-Led Gains: Markets Wrap

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(Bloomberg) -- Asian shares gained for a fifth day as a rally sparked by support measures from Beijing continued, while US stocks set fresh highs, with...

-- Asian shares gained for a fifth day as a rally sparked by support measures from Beijing continued, while US stocks set fresh highs, with investors preparing for further rate cuts.Equity benchmarks rose in South Korea and Australia, while those for Japan were mixed after the yen strengthened against the dollar in the prior two sessions. The Golden Dragon index of US-listed Chinese companies rallied 9.1% in New York trading on Tuesday.

Support measures unveiled by Chinese authorities Tuesday included interest rate cuts, more cash for banks, bigger incentives to buy homes and plans to consider a stock stabilization fund. However, the efforts may only buy China some time given the scale of challenges facing the economy.Treasury yields were little changed after edging lower Tuesday as US data showed signs of fragility in the economy, while an index of greenback strength fell to trade near the lowest level this year.

Swaps traders increased their wagers to more than three-quarters of a point of policy easing by year-end from the Federal Reserve, suggesting at least one more major US cut is in store, after the data. Investors are awaiting data on the Fed’s preferred price metric and US personal spending later this week for further clues on the depth of future reductions.

Oil prices climbed Tuesday on hopes of a stronger Chinese economy and as a major Israeli strike on Hezbollah targets in Lebanon kept tensions high in the Middle East. Gold hit a record trading above $2,662 an ounce.US PCE, University of Michigan consumer sentiment, FridayThe Japanese yen rose 0.1% to 143.

The 'Melrose Place' alum looked back on an uncomfortable encounter she had with the director while shooting one of her first filmsMINNEAPOLIS — A Minnesota judge sentenced a woman to 20 years in prison Tuesday for her alleged role in the 2019 New Year's Eve killing of a Minneapolis real estate agent.Marcellus Williams had long proclaimed he was innocent in the 1998 fatal stabbing of Felicia Gayle in a St Louis, Missouri, suburb.

Clippers star Kawhi Leonard underwent knee procedure this offseason, will be limited to start training campRIO DE JANEIRO — A Brazilian judge Tuesday suspended the preventive arrest of one of the country's most popular country music stars in connection with a money laundering investigation, a court source with access to the ruling told The Associated Press.It comes just days after the US central bank cut interest rates for the first time in over four years.

 

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