SINGAPORE — Asia shares dipped in and out of positive territory on Monday, under pressure from weakness in Hong Kong stocks, but bitcoin scaled a three-month peak as “Trump trades” continued to ramp up.
Gold hit another record high, as global uncertainty over the conflict in the Middle East and an extremely close US presidential election boosted bullion’s appeal.
Optimism over Beijing’s slew of stimulus measures, first announced late in September, has turned into caution in recent days as investors look to further details of more fiscal support from policymakers.
Though China cut its benchmark lending rates on Monday, the move was anticipated.
China’s blue-chip index swung between losses and gains in early trade before turning decisively higher by the Asian afternoon, helped by a rise in technology companies.
The benchmark was 0.4 percent higher, while the Shanghai Composite Index (SSEC) opens new tab gained 0.31 percent.
The Beijing Stock Exchange 50 Index jumped 14 percent to a record high after the bourse said on Sunday it would help small- and medium-sized tech companies with training and access to finance so they can list.
People walk on an overpass with a display of stock information in front of buildings in the Lujiazui financial district in Shanghai, China. REUTERS
That failed to excite Hong Kong markets, however, where stocks fell more than 1 percent, pushing MSCI’s broadest index of Asia-Pacific shares outside Japan, opening a new tab down 0.26 percent, a step back in sentiment after US stocks posted a sixth straight week of gains on Friday.
Japan’s Nikkei rose 0.12 percent.
Further details on Chinese stimulus might take some time to emerge.
“We might have to wait until late October or early November for concrete plans from the Standing Committee meeting of the National People’s Congress,” said Chaoping Zhu, global market strategist at JP Morgan Asset Management in Shanghai.
Stock futures pointed to a mixed opening in Europe, with Eurostoxx 50 futures losing 0.1 percent, while FTSE futures ticked up 0.17 percent.
Nasdaq futures eased 0.08 percent. S&P 500 futures were flat.
US election
With just about two weeks to go before the November 5 US election, bets reflecting a Donald Trump victory are on the rise across parts of the market.
The Republican candidate’s tariff, tax and immigration policies are seen as inflationary and thus negative for bonds and positive for the dollar. He is also seen as taking a more favorable stance toward cryptocurrencies.
“[It] seems now that Trump’s ahead in the key battleground states, which suggests he’s quite well placed to regain the White House, and I think the markets started to factor that in last week with the stronger equities, higher yields, US dollar obviously doing very, very well and bitcoin on track for a 10-percent gain over the past week,” said Tony Sycamore, a market analyst at IG.
Bitcoin was last 0.5 percent higher at $69,080.72, after having touched its strongest level since July at $69,487 earlier in the session. The world’s largest cryptocurrency gained 9.6 percent last week and is up more than 8 percent for the month thus far.
“Things look pretty good for bitcoin right here. I think it can continue higher,” said Sycamore.
The dollar hovered not too far from a high of more than two months against a basket of currencies on Monday, with the dollar index last at 103.49.
Sterling dipped 0.05 percent to $1.3041, while the euro fell 0.06 percent to $1.0861.
In the bond market, the benchmark 10-year US Treasury yield last stood at 4.0809 percent, while the two-year yield was little changed at 3.9531 percent.
Spot gold peaked at a record of $2,732.73 an ounce, extending its rally after having gained more than 2 percent last week.
“One of the clearest Trump trades so far has been gold, given his belligerent stance on trade and willingness to weaponize the dollar, keeping demand for diversification well supported among emerging central banks,” said Arun Sai, senior multi-asset strategist at Pictet Asset Management.
Oil prices ticked higher on Monday, nursing a steep fall from last week.
Brent crude futures were last 0.6 percent higher at $73.49 a barrel, while US crude rose 0.7 percent to $69.70 per barrel.
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