The US indices continue to grow, the Japanese Nikkei reached a 33-year high: what you need to know in the morning

Main news of foreign markets this morning

Photo: pixabay.com 0 American shares are growing for the second day in a row

The S&P 500 added 0.9%, the high-tech Nasdaq added 1.5% and the Dow Jones added 0.3%.

Wall Street expects a resolution of the situation regarding raising the ceiling of the American national debt in the near future.

Yesterday’s comments by the speaker of the US House of Representatives, Kevin McCarthy, indicate that a decision on increasing the national debt ceiling may be made as early as next week.

Meanwhile, the rally in shares of the US technology sector was supported by the growth of shares of chip manufacturers, as well as a jump in Netflix shares by more than 9% after the positive reaction of investors to the new presentation of the giant.

The markets of the Asia-Pacific region are traded in different directions

The broad index of Asian shares (excluding Japan) MSCI AC Asia ex Japan Index lost 0.1% today, Japan’s Nikkei rose by 0.8%, South Korea’s Kospi added 0.7%, Singapore’s STI increased by 0.3%, and China’s The Shanghai Composite and the Hong Kong Hang Seng fell by 0.3% and 1.2%, respectively.

Market optimism in Asia was leveled by the reaction of investors to the latest economic data from China, which indicate that the country’s economy lost its growth momentum at the beginning of the second quarter of 2023. This has heightened concerns about China’s unstable recovery after the COVID-19 pandemic, Reuters notes.

The Japanese Nikkei rose to a 33-year high

On Friday, the benchmark of the Japanese stock market rose to the highest level since August 1990, increasing to the values ​​of the so-called era of the Japanese “bubble”.

The rally in Japanese shares was caused by a number of positive factors: a very strong reporting season, a weaker yen against the background of expectations that the Bank of Japan will maintain economic incentives longer, as well as an increase in the volume of investments in the country by Warren Buffett’s Berkshire Hathaway.

The Nikkei’s latest push to a 33-year high came on growing optimism that US lawmakers could soon reach an agreement to raise the national debt ceiling and avert a potential default.

Bank of America: investors buy shares of IT companies, do not pay attention to the problem with the US national debt ceiling

According to Bank of America, the amount invested in the securities of American technology companies has reached a 17-month high.

Investors increase the amount invested in the shares of representatives of the US IT sector as market optimism grows against the background of the expected reversal of the policy of the Federal Reserve System, as well as the growing demand for artificial intelligence technologies and ChatGPT, notes Bank of America.

At the same time, the latest survey by Bank of America showed that more than 70% of investors are not worried about the problem with the US national debt ceiling.

Meanwhile, since the beginning of the year, the Nasdaq index has grown by approximately 19%.

China has become the world’s largest exporter of cars, overtaking Japan

According to the General Administration of Customs of China, in the first quarter of 2023, the country exported 1.07 million cars, which is 58% more than in the first quarter of 2022.

At the same time, the export of cars from Japan amounted to 954,185 units, increasing by 6% compared to the same period last year.

Exports of cars from China are growing at a rapid pace thanks to the increase in demand for electric cars from the PRC, notes BBC News.

Source: Ministry of Finance

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