​EBC Markets Briefing | Yuan edges up; AMD led tech rally

China's yuan rebounded from a one-month low on Thursday, after the central bank set its guidance at the strongest in nearly three years in a bid to calm nerves against the backdrop of Iran conflict.

China on Thursday set its GDP growth target for 2026 at 4.5% to 5%, the lowest on record since early 1990s, as Beijing grapples with persistent deflationary pressures and higher US tariffs.

Annual consumer inflation target remains at "around 2%." First set in 2025, that is the lowest level in more than two decades, which makes the case for more stimulus to boost domestic demand.

Beijing pledged to continue to implement an "appropriately accommodative" monetary policy to bolster growth, including potential interest rate cuts and lower reserved requirement ratio.

Top US and ⁠Chinese trade negotiators are expected to ⁠meet in mid-March with Chinese purchase commitments for Boeing aircraft and soybeans potentially on the table, Bloomberg reported.

US Treasury Secretary Scott Bessent said on Wednesday that an ‌increase in new temporary global import tariff to 15% from 10% was likely to be implemented sometime this week.

Well supported by 50 SMA, the yuan again rose above 6.9 per dollar. The uptrend looks intact with initial hurdle around 6.867, unless a sharp decline below 7 per dollar occurs to negate the bullish bias.

Asset recap

As of market close on 4 March, among EBC major products, AMD shares led gains. the company received a boost from a series of positive developments and commentary centred on its AI business.

Investors flocked again to tech shares, lifting the Nasdaq 100 after a news report that Iran had signalled openness to talks. Bessent said oil market well supplied amid Iran war.

Rockwell Automation slumped after multiple recent analyst downgrades. With its shares trading at a relatively premium valuation, even modest shifts in sentiment can translate into outsized one-day moves.

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