Dollar slips, Chinese stocks rise

Asian stocks rise on a shift of market sentiment

By Nadia Elbilassy | @Nadia Elbilassy | 7 February 2024

Market open
  • Chinese stocks rebounded from multi-year lows on expectations of increased government support.

  • Japanese yen strengthens by 0.20%, reaching 148.67 per dollar.

  • US dollar slips to 104.15 from Monday's peak of 104.60, influenced by a risk-on sentiment limiting gains.

On the Market Watch:

In Currencies

The US dollar edged lower to 104.15 after touching 104.60 on Monday, after risk on sentiment capped gains.

The Japanese yen strengthened for the day, gaining 0.20% to reach 148.67 per dollar. This is slightly below a two-month low of 148.90. Data from Japan indicated a drop in wages for the 21st straight month while household spending saw a big drop as well.

Stock Markets

In stock markets, Chinese stocks slightly rose after surging by 3% overnight on expectations of additional government support and following a robust session on Wall Street. US indices rose to record highs overnight on a positive sentiment in the stock market despite keeping interest rates higher for longer.

Bloomberg News stated that Chinese regulators held discussions with President Xi Jinping to explore additional supportive measures. After markets in Asia slumped over weak economic prospects and a falling property sector.

Oil Prices

Oil prices inched higher for the third consecutive after the U.S. significantly revised down its forecast for the country's oil output growth, alleviating concerns about potential oversupply.

Brent crude hovered near $78.59 while WTI continued to trade near $73.45.