European, US futures dip as Asian stocks rise on Chinese market support

European and US equity futures dropped, even as Asian stocks saw gains following reassurances from Chinese officials about the government’s commitment to supporting the market and boosting share prices.

The Euro Stoxx 50 contract dropped 0.2% while S&P 500 futures lost 0.1%, News.Az reports, citing Bloomberg.

The MSCI Asia Pacific index climbed for the fourth session, set for the longest winning streak in nearly a month, as gains in mainland Chinese shares pushed up the benchmark CSI 300 Index by as much as 1.8% before trimming some of its advance.

A briefing hosted by China’s securities regulator, which said local insurers and mutual funds should add to their equity holdings, helped improve the dour equity mood among Chinese investors after a tariff threat from US President Donald Trump earlier this week weighed on sentiment.

“This is like stacking the firewood to build a campfire: we are setting up for a more constructive environment, but you need a spark,” said Tai Hui, JPMorgan Asset Management’s APAC chief market strategist. “A lot of investors internationally are concerned that further deterioration in the US-China relationship could impact investment.”

The briefing, held by China Securities Regulatory Commission Chairman Wu Qing, Deputy Finance Minister Liao Min and central bank official Zou Lan, underscores a desire to deliver big support measures for the market. Still, any lasting impact hinges on a recovery in the local economy.

“This is incrementally positive for the A-share market but not a game changer,” said Gary Tan, a portfolio manager at Allspring Global Investments. “We have been selectively adding to China from a bottom-up basis when valuations make sense instead of looking for an event catalyst as it will take time for China to address the fundamental issues in their economy.”

Yields on 10 year Treasuries were little changed at around 4.60%. The dollar consolidated with major currencies in a tight range.

Asian markets are still digesting the impact of Trump’s first few days in office, which have sent mixed signals to investors. Trump has reiterated a tariff threat against China but has largely spared the world’s second-largest economy from a feared escalation of the trade war.

The S&P 500 came close to an all-time high on Wednesday, after a three-day rally that has been fueled in part by Trump’s moves to boost spending on artificial intelligence. Earlier this week, the president unveiled a joint venture with SoftBank Group Corp., OpenAI, and Oracle Corp. that could spend billions of AI infrastructure.

SoftBank’s shares rallied in the wake of the news, and continued to move higher on Thursday. They are now up around 17% since the start of the year.

But other Asian tech stocks didn’t fare as well. Shares of Korean chipmaker SK Hynix Inc. tumbled as much as 4.7% after its record quarterly profit and modest capex plans failed to impress investors.

South Korea’s economy continued to sputter in the last quarter, with gross domestic product growth missing estimates. The nation plans to issue up to 20 trillion won ($13.9 billion) in special bonds from Thursday, dusting off a tool last used 21 years ago to help stabilize its currency.

Hyundai Motor reported operating profit for the fourth quarter that missed the average analyst estimate. Elsewhere in Asia, Philippine’s JG Summit Holdings shares slumped as much as 8.5%, the biggest one-day fall since March 2023, on concerns that the firm may be removed from MSCI indexes.

The Bank of Japan is on track to raise interest rates to the highest level since 2008 on Friday, as the central bank makes steady progress toward normalization just as the Federal Reserve and the European Central Bank start to mull a pause in their easing cycles.

In commodities, oil edged lower after an industry report pointed to the first gain in US crude stockpiles since mid-November, as the market watched for further pledges on global trade from President Trump. Gold held near the highest level since October.

News.Az