Asian bourses follow suit to the gains on Wall Street, where S&P 500 and Nasdaq extended on record highs amid notable strength in reopening stocks. China stocks staged a strong rebound yesterday, with impressive gains seen in the Invesco Golden Dragon China ETF +8%, and the KraneShares CSI China Internet ETF is +11%. In contrast, the iShares China Large-Cap ETF is +3.5% after the recent drop. JD earnings helped to drive risk-on the price action, as well PBOC promises of liquidity. The Bank has revealed that it has made growing credit the main goal for the next four months.
On the trade front, some positive signs as reports point that the US reportedly approved Huawei license applications to buy auto chips valued at hundreds of millions of dollars. On the geopolitical front, Japan and Taiwan will conduct their first bilateral security discussions. Global participants continue to await bond tapering clues from Friday’s Jackson Hole Symposium ahead of the last trading days of the month.
