China's bull market is forcing investors to finally take notice
Goldman Sachs says client interest in Chinese equities is at the highest it has been in recent years, helped by a 25 per cent rally for the MSCI China Index so far this year – the second-best start to a year since 2010. The broker is tipping another 11 per cent gain from here.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Perth Now
14 minutes ago
- Perth Now
Asia shares sideswiped by US economic jitters
Asian share markets have followed Wall Street lower as fears for the US economy returned with a vengeance, spurring investors to price in an almost certain rate cut for September and undermining the dollar. Some early resilience in US stock futures and a continued retreat in oil prices did help limit the losses, but the bleak message from the July payrolls report was hard to ignore. Not only had revisions meant payrolls were 290,000 below where investors had thought they would be, but the three-month average slowed to just 35,000 from 231,000 at the start of the year. "The report brings payroll growth closer in line with big data indicators of job gains and the broader growth dataset, both of which have slowed significantly in recent months," noted analysts at Goldman Sachs. "Taken together, the economic data confirm our view that the US economy is growing at a below-potential pace." Neither did the reaction of President Donald Trump instil confidence, as the firing of the head of Labor Statistics threatened to undermine confidence in US economic data. Likewise, news that Trump would get to fill a governorship position at the Federal Reserve early added to worries about the politicisation of interest rate policy. Analysts assume the appointee will be loyal to Trump alone, though the president did grudgingly concede that Fed Chair Jerome Powell would likely see out his term. "It opens the prospect of broader support on the Fed Board for lower rates sooner rather than later," said Ray Attrill, head of FX research at NAB. "Fed credibility, and the veracity of the statistics on which they base their policy decisions, are both now under the spotlight." Markets moved quickly to price in a lot more easing with the probability of a September rate cut swinging to 90 per cent, from 40 per cent before the jobs report. Futures extended the rally on Monday to imply 65 basis points of easing by year-end, compared to 33 basis points pre-data. Markets have essentially already eased for the Fed with two-year Treasury yields down another 4 basis points at 3.661 per cent. They tumbled almost 25 basis points on Friday in the biggest one-day drop since August last year. The prospect of lower borrowing costs offered some support for equities and S&P 500 futures inched up 0.1 per cent, while Nasdaq futures rose 0.2 per cent. Asian share markets, however, were still catching up with Friday's retreat and the 225-stock Nikkei fell 2.1 per cent, while South Korea dipped 0.2 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan broke the mould and firmed 0.3 per cent. Wall Street has also taken comfort in an upbeat results season. Around two-thirds of the S&P 500 have reported and 63 per cent have beaten forecasts. Earnings growth is estimated at 9.8 per cent, up from 5.8 per cent at the start of July. Companies reporting this week include Disney, McDonald's, Caterpillar and some of the large pharmaceutical groups. The dismal US jobs data did put a dent in the dollar's crown of exceptionalism, snuffing out what had been a promising rally for the currency. The dollar dipped 0.1 per cent to 147.24 yen, having shed an eye-watering 2.3 per cent on Friday, while the euro stood at $1.1585 after bouncing 1.5 per cent on Friday. The dollar index was pinned at 98.659, having been toppled from last week's top of 100.250. Sterling was more restrained at $1.3287 as markets are 87 per cent priced for the Bank of England to cut rates by a quarter point at a meeting on Thursday. The BoE board itself is expected to remain split on easing, while markets still favour two further cuts by the middle of next year. In commodity markets, gold was flat at $US3361 ($A5,189) an ounce, having climbed more than two per cent on Friday. Oil prices extended their latest slide as OPEC+ agreed to another large rise in output for September, which completely reverses last year's cuts of 2.2 million barrels per day. Brent dropped 0.6 per cent to $US69.24 ($A106.89) a barrel, while US crude also fell 0.6 per cent to $US66.93 ($A103.33) per barrel. (Reporting by Wayne Cole; Editing by Jacqueline Wong)
West Australian
44 minutes ago
- West Australian
Overseas stars lure tourists Down Under in new push
Australian celebrity Robert Irwin, English television cook Nigella Lawson and other international stars are tempting tourists to the land Down Under. Shots of these celebrities set against iconic Australian landscapes are part of the federal government's newest tourism push to attract travellers from five countries. Advertisements featuring Chinese actor Yosh Yu, Ms Lawson and Japanese comedian Abareru-kun will air in their home countries, while Steve Irwin's son will become the face of the American campaign and wellness advocate Sara Tendulkar will star in ads broadcast in India. This $130 million push builds on Tourism Australia's Come and Say G'day campaign, which launched the lovable animated mascot Ruby the Roo. "Traditionally tourism campaigns have leveraged one famous face across every market but for our latest campaign Ruby will be joined by well-known talent from five different markets to showcase personal lasting memories of a holiday to Australia," Tourism Australia managing director Phillipa Harrison said. "These international stars combine with local talent ... to create bespoke invitations for five markets." Since the resumption of international travel, the domestic tourism industry has grown with the number of international arrivals expected to reach a record 10 million in 2026 and 11.8 million in 2029. More than 700,000 jobs and 360,000 Australian businesses depend on tourism. The teaser for this campaign was first launched in July during the prime minister's trip to China. Chinese travellers remain Australia's second biggest cohort of tourists behind New Zealand, figures from the Australian Bureau of Statistics show. "Tourism is the lifeblood of so many communities right around the country and creates hundreds of thousands of jobs," Tourism Minister Don Farrell said. "The previous campaign struck a chord with visitors, with Ruby the Roo bounding into the imagination of countless guests, encouraging them to book a holiday down under. "I know this iteration, featuring popular talent like Robert Irwin, will be a smash." The advertisements will go live in China from August 7 on TV and online.
Perth Now
44 minutes ago
- Perth Now
Overseas stars lure tourists Down Under in new push
Australia's Robert Irwin is among celebrities featured in a new tourism campaign. (HANDOUT/TOURISM AUSTRALIA) Australia's Robert Irwin is among celebrities featured in a new tourism campaign. (HANDOUT/TOURISM AUSTRALIA) Credit: AAP Australian celebrity Robert Irwin, English television cook Nigella Lawson and other international stars are tempting tourists to the land Down Under. Shots of these celebrities set against iconic Australian landscapes are part of the federal government's newest tourism push to attract travellers from five countries. Advertisements featuring Chinese actor Yosh Yu, Ms Lawson and Japanese comedian Abareru-kun will air in their home countries, while Steve Irwin's son will become the face of the American campaign and wellness advocate Sara Tendulkar will star in ads broadcast in India. This $130 million push builds on Tourism Australia's Come and Say G'day campaign, which launched the lovable animated mascot Ruby the Roo. "Traditionally tourism campaigns have leveraged one famous face across every market but for our latest campaign Ruby will be joined by well-known talent from five different markets to showcase personal lasting memories of a holiday to Australia," Tourism Australia managing director Phillipa Harrison said. "These international stars combine with local talent ... to create bespoke invitations for five markets." Since the resumption of international travel, the domestic tourism industry has grown with the number of international arrivals expected to reach a record 10 million in 2026 and 11.8 million in 2029. More than 700,000 jobs and 360,000 Australian businesses depend on tourism. The teaser for this campaign was first launched in July during the prime minister's trip to China. Chinese travellers remain Australia's second biggest cohort of tourists behind New Zealand, figures from the Australian Bureau of Statistics show. "Tourism is the lifeblood of so many communities right around the country and creates hundreds of thousands of jobs," Tourism Minister Don Farrell said. "The previous campaign struck a chord with visitors, with Ruby the Roo bounding into the imagination of countless guests, encouraging them to book a holiday down under. "I know this iteration, featuring popular talent like Robert Irwin, will be a smash." The advertisements will go live in China from August 7 on TV and online.
