Xiaomi shares surged over 8% after the company announced its first electric vehicle delivery on March 28. The stock outperformed the wider Hang Seng index, which was up 1.25%. In a Weibo post, Xiaomi revealed that orders for the SU7 model will be taken at 59 stores in 29 cities across China. This move marks Xiaomi’s entry into the electric vehicle market, signaling its expansion beyond consumer electronics.
Meanwhile, Japan’s 2-year government bond yields hit a 13-year high amid speculation that the Bank of Japan will tighten monetary policy soon. The yield on the 2-year JGB rose to 0.2%, reaching levels last seen in January 2010. The benchmark 10-year JGB yield also climbed to 0.778%, its highest level since November 2023. This increase in bond yields reflects expectations of a shift in Japan’s monetary policy.
In other news, Japan’s corporate goods price index for February exceeded expectations, rising 0.6% year-on-year. This beat the 0.5% forecasted by economists and was faster than December’s figure of 0.2%. The strong inflation reading could pave the way for the Bank of Japan to raise rates sooner, potentially impacting Japan’s equity markets.
JPMorgan CEO Jamie Dimon expressed concerns about a potential stock market bubble, suggesting that the Federal Reserve should delay interest rate cuts until after June. Dimon’s comments were made at the Australian Financial Review business summit. Additionally, JPMorgan’s top stock strategist, Marko Kolanovic, advised clients to stay defensive in the stock market due to rich valuations and geopolitical risks.
Lastly, Oracle shares surged more than 12% in extended trading following strong fiscal fourth-quarter results. The company’s cloud services and license support segment saw a 12% increase in revenue, although overall revenue fell slightly short of expectations. This positive performance indicates continued growth for Oracle in the competitive tech industry.
