Asia markets live updates: Indian elections, Australia GDP

— Shreyashi Sanyal, Lim Hui Jie

China’s services activity grew at the fastest pace in 10 months in May, according to a private survey.

The Caixin S&P Global services purchasing managers’ index rose to 54 from 52.5 in April, growing at the quickest pace since July 2023.

A PMI reading above the 50-mark separates expansion from contraction.

The survey also showed that incoming new work increased at the fastest pace since May 2023.

— Shreyashi Sanyal

Real wages in Japan fell for a 25th straight month in April, potentially stifling the Bank of Japan’s plans to raise interest rates and realize its “virtuous cycle” of increasing wages and prices.

Government data showed that real wages fell 0.7%, a softer fall from the 2.1% loss in March. Nominal wages came in at 296,884 yen ($1,913.28), growing 2.1% year on year.

This accelerated from March’s nominal wage growth of 1%, posting its highest pace of growth in 10 months.

— Lim Hui Jie

The growth prospects of countries like India and South Korea have seen many investors and big-name banks turn bullish on emerging markets this year. One wealth manager, however, said his super-rich clients are focused elsewhere.

Dhruba Jyoti Sengupta, CEO of Wrise Private Middle East, said “a lot of wealth — especially from ultra-high-net-worth individuals — is moving” to the city.

He also revealed how individuals with around $10 million to invest typically allocate funds.

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— Amala Balakrishner

Nvidia is one obvious beneficiary of artificial intelligence — companies have been buying its chips and investor interest has sent its shares soaring to record highs.

Many companies are in the AI infrastructure buildout phase right now. But will their millions to billions dollars’ worth of investments pay off?

Clare Pleydell-Bouverie, portfolio manager at Liontrust Asset Management, weighs in.

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— Weizhen Tan

Tuesday’s moves, albeit muted, should raise some concern for investors, according to Rosenberg Research founder David Rosenberg.

“The fact that equities are not responding well to the renewed pullback in Treasury yields and the swaps market beginning to price in a September rate cut is signaling something important: that stock market investors are also becoming concerned about the economic slowdown and what it means for the earnings outlook,” Rosenberg said in a post on social media site X.

The S&P 500 traded 0.2% lower Tuesday afternoon, while the benchmark 10-year Treasury yield slid 7 basis points to 4.3%.

— Fred Imbert

The market does not need rate cuts to rally, according to Deutsche Bank’s Binky Chadha.

“I don’t think that we need rate cuts for the market to go up,” the chief global strategist told CNBC’s “Squawk on the Street” on Tuesday. “House view is for one cut, but all the way in December.”

The firm remains “constructive equities,” he added.

— Samantha Subin

Bank of America Securities clients were net sellers of U.S. equities last week, with tech stocks taking the biggest hit, according to the bank.

Overall, equities and tech stocks both logged their largest outflows since last July, analyst Jill Carey Hall wrote in a note Tuesday. It was the fourth-largest outflow for overall equities in Bank of America’s history since 2008. Tech stocks saw their second-largest outflow since 2008.

Institutional and hedge fund clients were net sellers, while retail clients were net buyers, she said. The sell-off was led by large/mid-caps, while clients bought small caps.

Clients also sold equity exchange-traded funds for the second week in a row, led by small-cap ETFs and blend/growth ETFs, Hall said. Clients bought large/mid/broad market and value ETFs, she said.

— Michelle Fox