Asian Stocks Mix as US and European Equity Futures Rise: Markets Wrap

(Bloomberg) — Asian stocks were mixed while European stock futures rose and US futures extended their lead on Thursday, amid signs the S&P 500’s four-day streak of declines is poised for a sudden rebound.

Most Read from Bloomberg

Wall Street rose 0.4% while tech-heavy Nasdaq 100 rose 0.8% after chip maker Nvidia Corp issued a bullish outlook and rose more than 9% in extended trade.

Major stock indices in Hong Kong and mainland China fluctuated. Stocks rose in South Korea and Australian stocks fell. There was no trading in Tokyo stocks or Treasury bonds in Asian hours due to a holiday in Japan.

The dollar weakened against all other G10 currencies after rising on Wednesday. The Australian dollar showed the biggest gains on the back of stronger-than-expected business investment data and reduced buying by exporters.

Australian bond yields rose while New Zealand’s 2- and 10-year bond yields increased by more than 10 basis points.

The 10-year US Treasury Index fell four basis points on Wednesday, although the decline was moderated after the release of minutes from the Federal Reserve.

The minutes showed that officials expect more interest rate increases to tame inflation. They also revealed that “a few” officials were open to a 50 basis point rate hike at the central bank’s meeting earlier this month when it raised rates by 25 basis points.

Investors have increased their expectations for the peak of the Fed’s interest rate cycle. Market pricing now points to expectations for a peak of around 5.4% in July. A month ago, investors priced in a peak of 4.9% in June. The dollar index fell after consolidating on Wednesday.

Story continues

“One of our big concerns coming this year was that the market was anticipating an event that was not likely to happen, being the focus of a pessimistic Fed,” said Danielle Polley, co-portfolio manager of the Diversified Income Fund at Oaktree Capital Management. In an interview with Bloomberg Television. “The market has woken up a bit in those last couple of weeks.”

Unemployment claims data due out Thursday in the US will help highlight the strength of the labor market, which has remained stubbornly strong during the rate hike cycle. Eurozone inflation data due for release today will also help investors determine the health of the European economy.

Elsewhere in the markets, South Korea’s Kospi Index rose more than 1% and the won advanced after the central bank kept its benchmark interest rate unchanged with the first pause in interest rate increases in a year.

Oil surged higher – after its longest losing streak this year – as the dollar fell and traders assessed the mixed demand outlook for US monetary tightening and China’s reopening.

Main events this week:

• Eurozone CPI, Thursday

• US GDP, Initial Jobless Claims, Thursday

• Atlanta Federal Reserve Chairman Raphael Bostick speaking Thursday

• Bank of Japan governor nominee Kazuo Ueda appears before Japan’s House of Representatives on Friday

• US PCE Deflator, Personal Spending, New Home Sales, University of Michigan Consumer Confidence, Friday

• On Friday, Russia’s invasion of Ukraine reached the one-year threshold

Some of the major movements in the markets:

Stores

• S&P 500 futures were up 0.4% as of 2:53 p.m. Tokyo time. The S&P 500 fell 0.2%

• Nasdaq 100 futures rose 0.8%. The Nasdaq 100 rose 0.1%.

• Hong Kong’s Hang Seng fell 0.2%.

• The Shanghai Composite Index fell 0.3%.

• Futures on the Euro Stoxx 50 rose 0.4%.

currencies

• The Bloomberg Spot Dollar Index fell 0.2%.

• The euro rose 0.2 percent to $1.0621

• The Japanese yen was little changed at 134.82 per dollar

• The offshore yuan rose 0.2 percent to 6.8907 per dollar

Digital currencies

• Bitcoin rose 2.4% to $24,375

• Ether rose 2.7% to $1,663.5

bonds

goods

• West Texas Intermediate crude rose 0.4 percent to $74.26 a barrel

• Spot gold rose 0.2 percent to $1,829.31 an ounce

This story was produced with help from Bloomberg Automation.

– Assistance from Akshay Chinchalkar.

Most Read from Bloomberg Businessweek

© 2023 Bloomberg LP