China Fund News reporter Guo Minjun
Good morning, everyone! Last night and this morning, a lot of big things happened.
The three major United States stock indexes closed slightly higher.
Chinese assets continue to soar! Alibaba repurchased about 29 billion yuan of ordinary shares in the third quarter, up 50.59% year-to-date!
Fed officials expect another 50 basis point rate cuts this year.
The situation in the Middle East has escalated, and international oil prices have risen across the board!
The three major United States stock indexes closed slightly higher
On October 2, Eastern time, the three major United States stock indexes closed slightly higher. At the close, the Dow rose 0.09% to 42,196.52, the S&P 500 rose 0.01% to 5,709.54 and the Nasdaq rose 0.08% to 17,925.12.
Chip stocks were broadly higher. The Philadelphia Semiconductor Index rose 1.48%. GF rose 3.42%, leading the Philadelphia Semiconductor Index. TSMC rose 2.15%, Broadcom rose 1.90%, Nvidia rose 1.58%, Qualcomm rose 1.53%, ASML rose 1.20%, and Intel fell 1.32%.
Chinese assets continue to soar!
Chinese assets continued to soar. The Nasdaq China Golden Dragon Index rose 4.93%. Agora rose 79.64%, Youdao rose 37.04%, and Tiger Brokers rose 29.37%, leading the Nasdaq China Golden Dragon Index.
Consumption and tourism during the National Day holiday were booming, and consumption, entertainment, and tourism concept stocks rose sharply. Bilibili rose 10.96%, NetEase rose 7.88%, Tencent Music rose 7.57%, Yum China rose 7.75%, Trip.com Group rose 7.05%, Huazhu rose 6.69%, and Atour rose 6.18%.
Alibaba repurchased about 29 billion yuan of common shares in the third quarter
Year-to-date gains of 50.59%!
Alibaba announced on the Hong Kong Stock Exchange that during the quarter ended September 30, the company repurchased a total of 414 million ordinary shares (equivalent to 52 million United States depositary shares) at a total price of US$4.1 billion (about 29 billion yuan). These repurchases are conducted in the United States market and the Hong Kong market under the Company's share repurchase program.
On October 2, Eastern time, Alibaba's U.S. stock traded up 2.21% at $115.23. Year-to-date, Alibaba has risen by 50.59%!
International oil prices rose across the board
Iran's massive missile attack on Israel has raised concerns about crude oil supply due to the escalation of the situation in the Middle East. International oil prices rose across the board. The U.S. oil November contract rose 1.69% to $71.01 a barrel. The December oil contract rose 3.51% at one point, and then narrowed its gains, up 1.50% at $74.661 a barrel as of press time.
Fed officials: another 50 basis point rate cut within the year
On October 2, local time, Richmond Federal Reserve Bank President Barkin said in an interview that a 50 basis point interest rate cut in September was reasonable, and agreed that the benchmark interest rate could be reduced by another 50 basis points by the end of this year.
In the coming months, in the second half of 2025, Barkin said, "I'm more worried about inflation than about the labor market." He said continued strong demand and a tight labor market again made it difficult for the Fed to complete the "last mile" of reducing inflation. The Fed's efforts to return inflation to its 2% target may take longer than expected to complete and will limit the size of rate cuts.
He speculated that the Fed could face a "no landing" situation rather than a "soft landing" for inflation, where inflation is brought under control without a painful recession, and that the Fed could face some potentially embarrassing choices later next year.
Editor: Xiao Mo
Review: Muyu