Stocks in the US closed mixed on the last trading day of Q1, just ahead of the Easter break. The S&P 500 added 0.1%, hitting new high, the Dow Jones gained 47 points, while the Nasdaq ended 0.1% lower, as investors awaited the release of the Fed's preferred inflation measure and Chair Jerome Powell's comments the following day. Despite a weak opening, stocks are poised to end the quarter on a strong note, having added $4 trillion to US equity values, buoyed by recent remarks from Fed officials suggesting that policymakers will not hastily lower interest rates. On the corporate front, luxury retailer RH surged 17.1% after unveiling a robust outlook for demand and revenue growth. In contrast, Reddit saw a 14.9% decline after its CEO and COO disclosed selling over 1 million shares in total. For the quarter, the S&P 500 gained 10.2%, marking its best first-quarter gain since 2019. The Dow Jones added 5.6%, its strongest first-quarter performance since 2021, while the Nasdaq climbed 8.6%.
Frankfurt’s Dax held early gains and closed above the flatline to extend its record high to 18,492 on Thursday, the last trading day of the week due to Good Friday, as equities continued to benefit from an improving macroeconomic backdrop before the release of key European inflation rates. Still, retail data showed an unexpected decline in domestic sales in February, challenging the improved business sentiment results released earlier in the week. Healthcare giants led the gains, with Merck and Sartorius adding 2% and 1.3%, respectively. On the other hand, a near 1% decline for SAP limited further gains. Over the first quarter of the year, the Dax gained 10.7%.
The Nikkei 225 Index rose 0.5% to close at 40,369 while the broader Topix Index gained 0.65% to 2,767 on Friday, recouping some losses from the previous session, with nearly all sectors participating in the rebound. Investors were also closely monitoring currency moves amid fears that the yen’s recent slide to 34-year lows could prompt another intervention from Japanese authorities. Meanwhile, investors assessed mixed economic data in Japan for February, with a surprise increase in the unemployment rate and decline in industrial production, while retail sales rose more than expected. Notable gains were seen from index heavyweights such as Tokyo Electric Power (2.8%), Mitsubishi Heavy Industries (6.1%), Mitsubishi UFJ (1.4%), Fast Retailing (0.9%) and Advantest (1.9%). The Nikkei and Topix indexes gained 3.07% and 3.47%, respectively, in March, extending their winning streak to a third straight month.
The Shanghai Composite climbed 1.01% to close at 3,041 while the Shenzhen Component gained 0.62% to 9,401 on Friday, rising for the second straight session amid hopes that Chinese authorities would step up policy support to boost growth. Chinese legislator Zhao Leji said this week that the country will open up its economy further to foreign investors, while President Xi Jinping reportedly told China’s financial regulators that the monetary policy toolkit must include a controversial means of injecting liquidity into the economy. Sentiment was also lifted by news that state investor Central Huijin has been buying stakes in bluechip funds to support the market. Notable gains were seen from heavyweight firms such as Zhejiang Wanfeng (7.4%), DBG Technology (6.2%) and OFILM Group (3.6%).
The BSE Sensex added 639 points, or 0.9%, to close at an over two-week high of 73,651.4 on Thursday, the final trading session of fiscal year 2024. Financials were the top performers, after the central bank eased recently tightened rules for lenders' investments in alternative investment funds (AIFs). The Reserve Bank of India on Wednesday relaxed norms which required lenders to set aside higher provisions if they bought into alternative investment funds. In the meantime, Bajaj Finserv and Bajaj Finance added 4% and 3.1%, respectively, after it was reported that housing finance arm Bajaj Housing Finance initiated preliminary talks for a potential initial public offer. All major sectors rose in FY24, with real estate, auto, and state-owned banks advancing the most between 80% and 140%. The benchmark index has advanced 1.89% in the January-March quarter, extending gains for four straight quarters in a row, besides logging a second straight weekly gain of 1.4%.
