--- title: "Asian stocks gain on China recovery, weaker dollar: markets wrap" description: "Asian equities climbed, aided by signs of a stabilisation in China’s economy and a retreat in the dollar." type: "NewsArticle" publisher: "Daily Maverick" site: "https://www.dailymaverick.co.za" section: "Business Maverick" author: "Bloomberg" author_url: "https://www.dailymaverick.co.za/author/bloomberg/" canonical_url: "https://www.dailymaverick.co.za/article/2024-11-15-asian-stocks-gain-on-china-recovery-weaker-dollar-markets-wrap/" published: "2024-11-15T05:34:58" updated: "2024-11-15T05:34:59" lang: "en-ZA" word_count: 480 --- # Asian stocks gain on China recovery, weaker dollar: markets wrap > Asian equities climbed, aided by signs of a stabilisation in China’s economy and a retreat in the dollar. By Bloomberg · Published 15 November 2024, 07:34 SAST · Updated 15 November 2024, 07:34 SAST ## Key points - As China’s retail sales soar to an eight-month high, buoying markets in Hong Kong and Australia, the US grapples with a mixed bag of economic signals, leaving investors pondering if the Fed's rate cuts are just around the corner or a mirage in the desert of uncertainty. - Hong Kong and Australian markets rose on strong Chinese retail sales, while Japan's benchmarks gained amid yen weakness; US contracts dipped. - The dollar's five-day rally paused as Fed Chair Powell signaled no rush for interest rate cuts; Goldman Sachs predicts cuts in December and next year. - Emerging market assets faced a tough week, with equities on track for their worst performance since June 2022, as South Korean shares fell due to potential EV tax credit eliminations. - In commodities, oil prices are set for a weekly drop influenced by a stronger dollar, while gold hovers near a two-month low; US economic data shows resilience amid inflation concerns. ## Content Shares in Hong Kong and Australia advanced following data that showed China recorded the highest retail sales [growth](https://www.bloomberg.com/news/articles/2024-11-15/china-economy-stabilizes-as-consumption-rises-more-than-expected) in eight months. Japanese benchmarks gained about 0.8%, supported by weakness in the yen. US contracts slipped. A gauge of the dollar halted a five-day gain that was helped by Federal Reserve Chair Jerome Powell’s comments that the central bank will be in [no rush](https://www.bloomberg.com/news/articles/2024-11-14/fed-s-powell-says-no-need-to-hurry-rate-cuts-with-economy-strong) to cut interest rates. US two-year yields were little changed. “We think a December rate cut is in the cards and we think there will be at least two cuts next year,” Salman Niaz, head of global fixed income for APAC ex-Japan at Goldman Sachs Asset Management, said on Bloomberg Television. “The strength of the dollar has obviously taken away some of the returns from emerging markets local currency bonds, but we think the more attractive opportunity at this point is in the hard currency aspect of emerging markets,” Niaz said, referring to dollar-denominated debt. Friday’s action gives a welcome respite to emerging market assets after they suffered for most of the week amid developments on US President-elect Donald Trump’s cabinet picks and shifting interest-rate forecasts. A gauge of emerging markets equities is still on pace for its worst week since June 2022, while a separate index of emerging markets currencies is close to erasing its gains for the year. South Korean shares fell on Friday, weighed down by battery makers on news that Donald Trump may [eliminate](https://www.bloomberg.com/news/articles/2024-11-14/rivian-tesla-slide-on-report-trump-plans-to-nix-ev-tax-credit) a tax credit for electric vehicle purchases. The won is in focus after the country was [added](https://www.bloomberg.com/news/articles/2024-11-14/us-adds-south-korea-to-foreign-exchange-monitoring-watchlist) to the US Treasury’s “monitoring list” for foreign-exchange practices. Among key earnings, Alibaba Group Holding Ltd. reports later on Friday after another Chinese consumption bellwether JD.com Inc [posted](https://www.bloomberg.com/news/articles/2024-11-14/jd-s-revenue-growth-quickens-in-positive-china-economy-signal) a moderate expansion in revenue. Elsewhere, data set for release in the region includes gross-domestic product for Malaysia and Hong Kong. Markets are closed in India. In commodities, oil [headed](https://www.bloomberg.com/news/articles/2024-11-14/latest-oil-market-news-and-analysis-for-november-15) for a weekly drop, weighed down by the impact of a stronger dollar and concerns the global market will flip to a glut next year. Gold held near a two-month low. #### Resilient economy Data earlier Thursday in the US showed producer prices exceeded consensus forecasts. Jobless claims were [below](https://www.bloomberg.com/news/articles/2024-11-14/us-initial-jobless-claims-dropped-to-lowest-since-may-last-week) expectations and touched the lowest level since May. Several legislators have urged a cautious approach to further rate cuts in comments this week, in light of a strong economy, lingering inflation concerns and broad uncertainty. Their comments come at a time when the equity market is showing signs of fatigue following a post-election surge that spurred calls for a pause, with several measures highlighting “stretched” trader optimism. In the US, the S&P 500 dropped 0.6%, while the Nasdaq 100 slipped 0.7%. Automakers like Tesla Inc. and Rivian Automotive Inc. slumped as Reuters reported US President-elect Trump [plans to eliminate](https://www.bloomberg.com/news/articles/2024-11-14/rivian-tesla-slide-on-report-trump-plans-to-nix-ev-tax-credit) the $7,500 consumer tax credit for electric-vehicle purchases. Walt Disney Co. jumped on a profit beat.