Chinese stocks in US rise again on triple whammy of positives

Bloomberg

Chinese stocks listed in the US were set to rise for a fourth day, as traders digested a triple-whammy of positive news that has eroded the pessimism of a few weeks ago.
The KraneShares CSI China Internet Fund, an exchange-traded product holding more than 40 Chinese stocks, rose 7.4% in premarket trading, extending its 17% gain in the previous three sessions. Among major internet stocks, Alibaba Group Holding Ltd., Baidu Inc. and JD.com Inc. all gained more than 6%.
Recent gains have been driven by a perceived turnaround in issues that have hit stocks hard, from strict Covid controls to the property crisis and US-China relations.
Investors finally see signs of improvement in US-China ties following Xi Jinping and Joe Biden’s meeting at the Group of 20 summit, with the world’s two biggest economies restarting collaboration on issues ranging from climate change to food security. The two leaders pledged to avoid confrontation, a timely reassurance amid growing fears of a decoupling between the two superpowers following House Speaker Nancy Pelosi’s trip to Taiwan and US curbs on cutting-edge chip technology exports.
That’s as overseas investors turned net buyers of mainland stocks again on November 14. The buying spree was inspired by Beijing’s sweeping 16-point package to shore up its ailing property sector, along with some loosening in pandemic control measures after sticking to its Covid Zero playbook for more than two years.
The moves in US-listed Chinese stocks tracked advances seen across Hong Kong listings. The Hang Seng Tech Index enlarged its gain to 20% in just three days, with Alibaba and Tencent Holdings Ltd. both rising more than 10% on Tuesday. Their rallies may face a stern test when the two internet giants
release earnings later this week.

Global Stocks Lifted by Fed Pivot Hopes
Bulls piled back into global stock markets, encouraged by an easing in Sino-US tensions and growing confidence that the Federal Reserve will be able to slow its rate hiking pace.
As Treasury yields and the dollar slipped, index futures on the Nasdaq 100 jumped more than 1%, boosted also by hefty gains earlier across Asian technology companies. Chipmakers Advanced Micro Devices, Nvidia Corp and Intel rises between 1.3%-2% in US premarket trading, while Tesla, Amazon.com, Apple, and Alphabet all added about 1% each.
Europe’s Stoxx 600 index fluctuated just above flat, though the market is close to a three-month high and Germany’s Dax index is on the cusp of a technical bull-market, having narrowly missed that milestone.
Markets have turned risk-on in recent days, trading off a softer-than-expected US data print that many reckon will allow the Fed to raise rates in 50 basis-point increment, after three 75 basis-point hikes. That view was encouraged by Vice Chair Lael Brainard who said it would probably be “appropriate soon to move to a slower pace of increases.”
“The issue the market has to wrestle with is how long is the Fed going to keep rates at that level and I think there is some positive sentiment out there that the Fed is going to pivot sometime in 2023,” Peter Kraus, Chairman and CEO at Aperture Investors, told Bloomberg Television.
On currency markets, the dollar fell against a basket of currencies, touching its lowest since August 18, while 10-year Treasury yields also slipped.
Data showing Japan’s economy unexpectedly shrank in the third quarter, as well as softer- than-expected Chinese retail sales figures, highlighted risks for global growth.
Bank of America’s global fund manager survey for November showed sentiment remains “uber-bearish,” with investors still crowded into the dollar and cash, while tech stocks remain unpopular.
“My biggest concern is the market gets ahead of itself and we get into a situation where the Fed feels it needs to rein in, and tighten more than it otherwise would have, as markets became too frothy,” Kristina Hooper, chief global strategist at Invesco said on Bloomberg Radio.