# Asian stocks rally as bank jitters calm, Alibaba lifts mood Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-03-29 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Asian Shares Surge as Alibaba Announces Split Plans Meta Description: Alibaba's break-up announcement boosts Chinese tech stocks, easing banking sector concerns. European and U.S. markets set to open higher. URL: https://financedigest.com/asian-stocks-rally-as-bank-jitters-calm-alibaba-lifts-moodhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-03-29t023918z2lynxmpej2s01srtroptp4global-markets-1736814235837-compressed.jpg) By Ankur Banerjee SINGAPORE (Reuters) – Asian shares surged on Wednesday as easing concerns over the banking sector revived risk appetite, while Alibaba’s plans to split into six units lifted Chinese tech stocks. MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.68% higher, with Hong Kong’s Hang Seng index rising over 2%, buoyed by Alibaba after the Chinese e-commerce conglomerate announced its break-up plans. Alibaba’s [Hong Kong](https://www.financedigest.com/hong-kong-finance-official-to-make-first-visit-to-britain-in-three-years.html "Hong Kong finance official to make first visit to Britain in three years") shares shot up 15%, while the company’s U.S.-listed [shares closed 14.3% higher](https://www.financedigest.com/asia-shares-creep-higher-wary-on-fed-and-boj-outlooks.html "Asia shares creep higher, wary on Fed and BOJ outlooks"). The news lifted investor confidence in the wider Chinese tech sector, with shares of Alibaba’s [e-commerce rival JD.com Inc 7% higher](https://www.financedigest.com/polish-e-commerce-firm-allegro-eyes-higher-q1-profit.html "Polish e-commerce firm Allegro eyes higher Q1 profit"), and gaming giant Tencent Holdings Ltd jumping 5%. Alibaba’s split may pave the way for other Chinese [tech giants to do similar,” CMC Markets](https://www.financedigest.com/tech-earnings-hit-pause-button-on-market-rally.html "Tech earnings hit pause button on market rally") analyst Tina Teng said. This helps break down the monopolistic power of these conglomerates, which complies with the [Chinese government’s](https://www.financedigest.com/chinese-love-affair-with-manchester-property-to-strengthen-as-government-welcomes-new-investment.html "Chinese love affair with Manchester property to strengthen as government welcomes new investment") regulatory overhaul over antitrust issues. Futures indicated European stocks were [set to open higher](https://www.financedigest.com/londons-ftse-100-edges-higher-set-for-fourth-weekly-gain.html "London’s FTSE 100 edges higher, set for fourth weekly gain"), with Eurostoxx 50 futures up 0.41%, German DAX futures up 0.38% and FTSE futures up 0.08%. E-mini futures for the S&P 500 rose 0.48%. Also helping sentiment was easing worries over the banking sector, with investor nerves soothed by the sale of assets in collapsed lender Silicon Valley Bank and few [signs of further stresses](https://www.financedigest.com/4-reasons-your-finance-employees-are-showing-signs-of-stress.html "4 reasons your finance employees are showing signs of stress") in the banking system following weeks of volatility in the market. The lack of any substantive developments in the [banking backdrop has seen](https://www.financedigest.com/bank-of-canada-seen-on-hold-even-as-economy-accelerates.html "Bank of Canada seen on hold even as economy accelerates") markets relatively calm by the standards of recent weeks,” said Taylor Nugent, an economist at National Australia Bank. In the first congressional hearing into the collapse of the two U.S. regional lenders, lawmakers [pressed the Federal Reserve’s top](https://www.financedigest.com/5-top-tips-when-holding-a-crisis-press-conference.html "5 Top Tips When Holding a Crisis Press Conference") banking regulator on whether the central bank should have been more aggressive in its oversight of SVB. Michael Barr, the Fed’s vice chairman for supervision, criticised SVB for going months without a chief risk officer and how it modelled [interest rate](https://www.financedigest.com/ecbs-centeno-says-interest-rate-close-to-peaking-if-no-new-shocks.html "ECB’s Centeno says interest rate close to peaking if no new shocks") risk. “Investors have not completely lost their anxiety … and hints of a big regulatory overhaul are likely to weigh on the sector until details emerge,” said Robert Carnell, regional head of research, [Asia Pacific](https://www.financedigest.com/britains-superdry-sells-asia-pacific-ip-for-50-million.html "Britain’s Superdry sells Asia Pacific IP for million") at ING. Meanwhile, in a surprise move, UBS Group AG rehired [Sergio Ermotti as CEO](https://www.financedigest.com/factbox-five-facts-about-returning-ubs-ceo-sergio-ermotti.html "Factbox-Five facts about returning UBS CEO Sergio Ermotti") to steer its massive takeover of Credit Suisse. Overnight, a survey showed that U.S. [consumer confidence unexpectedly increased in March despite recent financial](https://www.financedigest.com/uk-consumer-mood-hits-one-year-high-but-financial-gloom-persists.html "UK consumer mood hits one-year high, but financial gloom persists") market turmoil, but Americans continued to expect inflation to remain elevated over the next year. Worries over inflation have prompted [investors to recalculate what they expect](https://www.financedigest.com/wave-of-lawsuits-over-ftx-expected-but-investors-will-face-legal-hurdles.html "‘Wave’ of lawsuits over FTX expected, but investors will face legal hurdles") the Fed to do in its next meeting in May. Markets are now [pricing in a 60% chance of the Fed standing still on interest rates in its next meeting](https://www.financedigest.com/oil-prices-steady-as-news-of-saudi-russia-meeting-calms-investors.html "Oil prices steady as news of Saudi, Russia meeting calms investors"), the CME FedWatch tool showed. In the [foreign exchange markets](https://www.financedigest.com/golden-sunshine-and-golden-visas-draw-wealthy-foreigners-from-far-and-wide-to-portuguese-property-market.html "Golden sunshine and golden visas draw wealthy foreigners from far and wide to Portuguese property market"), the dollar index, which measures the U.S. currency against six peers, was up 0.098%, having eased 0.3% overnight on improving [risk appetite](https://www.financedigest.com/stocks-rise-after-bank-sale-fuels-investor-risk-appetite.html "Stocks rise after bank sale fuels investor risk appetite"). The euro was down 0.08% to $1.0834, while sterling was last at $1.2324, down 0.13% on the day. The [Japanese yen](https://www.financedigest.com/japanese-yen-gains-as-ueda-set-to-be-named-next-boj-governor.html "Japanese yen gains as Ueda set to be named next BOJ governor") weakened 0.63% to 131.73 per dollar, after rising 0.5% overnight. The Australian [dollar fell 0.19% to $0.670 after inflation](https://www.financedigest.com/stocks-and-gold-cheer-u-s-inflation-picture-while-dollar-slides.html "Stocks and gold cheer U.S. inflation picture, while dollar slides") slowed to an eight-month low in February, helped in part by a sharp retreat in holiday travel and accommodation. Together with yesterday’s softish retail sales figures, this will encourage [thoughts of a pause](https://www.financedigest.com/rebels-with-a-pause-for-thought.html "Rebels with a pause for thought:") from the Reserve Bank of Australia at their next meeting, and potentially that this tightening cycle might now be over,” said ING’s Carnell. In the commodities market, [oil prices gained for a third straight day on improving market sentiment and as a halt to some exports from Iraqi Kurdistan raised concerns](https://www.financedigest.com/oil-near-flat-as-us-crude-stock-draw-contends-with-economic-concerns.html "Oil near flat as US crude stock draw contends with economic concerns") of tightening supply. U.S. crude rose 0.59% to $73.63 per barrel and Brent was at $78.83, up 0.23% on the day. \[O/R\] (Editing by Shri Navaratnam and Jacqueline Wong) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---