Asian Stocks Advance after Xi-Business Leaders Meeting Fuels Optimism

Asian stock markets witnessed an uptick, with Hong Kong gauges outperforming, following a meeting between Chinese President Xi Jinping and business leaders. The meeting sparked expectations of increased support for the private sector.

Key Market Movements

* Regional stock benchmark reached its highest since early November.
* Hong Kong-listed technology stocks hit a three-year high.
* Australian stocks extended losses despite a rate cut by the central bank.
* US equity index futures indicated gains, while European contracts remained flat.
* The US dollar strengthened against G-10 currencies.
* US Treasury 10-year yields rose four basis points to 4.5%.

Impact of Xi-Business Leaders Meeting

Optimism towards China received a boost after Xi's meeting with corporate executives, including Jack Ma of Alibaba. Analysts interpret the summit as a potential shift away from the government's crackdown on the private sector.

Economic Data and Outlook

Federal Reserve Governor Christopher Waller suggested holding interest rates steady until further progress is made in curbing inflation.

Hao Hong, an economist at Grow Investment Group, emphasized the need for sustainable growth models to support a multi-year rising trend in equity markets.

Other Developments

* OPEC+ delegates consider delaying output restoration, while Ukrainian drones attack a Russian crude-pumping station.
* Gold prices remained firm after a 0.5% gain on Monday.
* Goldman Sachs raises its year-end gold target to $3,100 per ounce.

Key Events This Week

* Singapore budget (Tuesday)
* UK unemployment data (Tuesday)
* Bank of England Governor Bailey's speech (Tuesday)
* Canada CPI (Tuesday)
* New Zealand rate decision (Wednesday)
* US FOMC minutes (Wednesday)
* China loan prime rates (Thursday)
* Eurozone consumer confidence (Thursday)
* US S&P Global manufacturing and services PMI (Friday)