The US labour market showed signs of a steady slowdown in October, with job openings increasing moderately and layoffs declining, according to the latest Job Openings and Labor Turnover Survey (JOLTS) report released by the Bureau of Labor Statistics on Tuesday. Job openings, a key indicator of labour demand, rose by 372,000 to 7.744 million at the end of October. However, the September figures were revised downward to 7.372 million from the initially reported 7.443 million. Economists polled by Reuters had anticipated 7.475 million vacancies. Labour Market Dynamics While job openings increased, hires dropped by 269,000 to 5.313 million, and layoffs fell by 169,000 to 1.633 million. These figures suggest a gradual cooling of the labour market rather than a sharp contraction. Hurricanes and strikes also impacted October’s labour market data. Rebuilding efforts in storm-affected regions and the resolution of strikes at Boeing and another aerospace company are expected to contribute to a ...
Chinese equities experienced their biggest weekly rally since 2008, as a massive wave of buying overwhelmed the Shanghai stock exchange on Friday. The CSI 300 Index surged 4.5%, bringing its weekly gain to 16%, following a series of economic stimulus measures announced by Xi Jinping's government.
Trading was so intense that it caused glitches and delays in processing orders, prompting the Shanghai exchange to investigate. This burst of activity signals a shift in investor sentiment after years of losses, with China's US$8.9 trillion stock market having been one of the world's worst performers.
Earlier in the week, Chinese authorities launched a much-anticipated monetary stimulus package and pledged further support for the housing market and consumption. Although the details of the stimulus plan are still emerging, many investors are afraid of missing out on a potential sustained rally.
As domestic markets close for Golden Week holidays, investors are eager to avoid missing gains that could continue in Hong Kong. According to David Chao, a strategist at Invesco Asset Management, the "FOMO" (fear of missing out) among investors is high, with Chinese stocks having rallied close to 10% in just three days. Some analysts believe there is still a 20% upside potential for Chinese stocks based on historical valuations.
The rally also extended to Hong Kong, where a gauge of Chinese stocks rose 2.5%, marking its longest winning streak since 2018. Additionally, China's tech-heavy ChiNext index surged a record 10%, and turnover reached nearly three times the volume seen earlier in the week.
Despite the broad rally, Chinese bank stocks declined amid concerns about a reported one trillion yuan capital injection plan. Investors fear this move could dilute the return on equity for banks, according to JPMorgan analysts. As a result, investors may be shifting focus away from stable sectors like banking, which had been popular during market downturns.
Looking ahead, some investors expect further fiscal stimulus to sustain market momentum. Raymond Chen, a fund manager at ZiZhou Investment Asset Management, said, “We can expect fiscal measures as well to come.” Other analysts, including those from Morgan Stanley, are turning bullish, predicting another 10% upside for the CSI 300 Index in the near term.
The bullish sentiment also boosted Asian stocks with exposure to China’s economy, as a risk-on mood spread across the region.
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