(Bloomberg) – European stock futures rose and Asian stocks rose for a sixth straight day, as a surge in US tech stocks and the reopening of China helped investors shrug off mixed data on the US economy.
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The moves are expected to extend the weekly gaining streak to five for the MSCI Asia Pacific Index as it heads towards its highest close since April. Hong Kong-listed technology stocks were among the regional performers on Friday, as they have been since around October.
A report that Japan and the Netherlands are poised to join the US in restricting China’s access to advanced semiconductor machinery dampened the rally and dragged stocks from daily highs. Mainland China is closed for the Lunar New Year holiday.
Investors are also focused on stocks linked to Indian billionaire Gautam Adani, with companies expected to provide a detailed response to a short seller’s report, which they call “false.”
Meanwhile, shares in Adani Group companies slumped, extending a sell-off that began with the report’s release. The model company Adani Enterprises Ltd. fell as much as 10% while Adani Green Energy Ltd. and Adani Total Gas Ltd. plummeted by 20%. The group’s defeat sent India’s NSE Nifty 50 index down more than 1%, its lowest level since October.
Treasuries fell in Asia. Australian bonds fell and the country’s 10-year yields rose more than five basis points. The dollar strengthened somewhat against most of the Group of Ten currencies.
The yen rose after inflation in Tokyo beat estimates and rose to its highest level since 1981. Fast-rising prices will increase pressure on the Bank of Japan to taper its stimulus after it doubled its efforts to cut bond yields earlier this month.
The story goes on
The 10-year Japanese bond yield rose 1.5 basis points to 0.475%, closer to the BOJ’s new 0.5% ceiling.
“The latest inflation report from Tokyo underscores rising price pressures and that could continue to fuel speculation of further Bank of Japan monetary policy adjustment and further Japanese yen strength,” said Fiona Lim, senior currency analyst at Malayan Banking Bhd. in Singapore.
Asia’s developments followed mixed US economic data on Thursday, with gross domestic product rising faster than forecast in the December quarter but accompanied by signs of weakening underlying demand as interest rate hikes weigh on growth. A surprise drop in initial jobless claims also hinted at the resilience of the labor market.
Quartz Capital Asia Singapore Pte is seeing increasing signs that price pressures in the US have already peaked. “Inflation will most likely slow to 3%, 3.5% in the second half of this year,” Havard Chi, the company’s head of research, said on Bloomberg Television. Labor data will “provide the leeway that the Fed basically needs to start cutting and lowering rates in the second half of the year. This will definitely be positive for Asian equities,” he said.
The S&P 500 closed at its highest level in more than a month on Thursday, reflecting the rise in technology stocks. The Nasdaq 100 rose 2% to its highest level since September, led by an 11% gain for Tesla Inc. as Elon Musk highlighted the potential for the automaker to produce 2 million vehicles this year.
U.S. futures headed in a different direction during Asian trading, in part due to Intel Corp. late in the day issued the direst quarterly forecast in its history after a PC break-in devastated its business. Intel crashed in late trade.
Elsewhere, oil rose on optimism about Chinese demand. gold slide.
Key Events:
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American Express, Charter Communications, Chevron and HCA Healthcare announce their results on Friday
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US Personal Income/Expenditure, PCE Deflator, University of Michigan Consumer Sentiment, Pending Home Sales, Friday
Some of the key movements in the markets:
Shares
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S&P 500 futures were down 0.4% as of 6:40 a.m. London time. The S&P 500 rose 1.1%
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Nasdaq 100 futures fell 0.7%. Nasdaq 100 up 2%
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Japan Topix Index up 0.2%
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South Korea’s Kospi index rose 0.6%
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Hong Kong’s Hang Seng index rose 0.3%
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Australia’s S&P/ASX 200 index rose 0.3%
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Euro Stoxx 50 futures up 0.2%
currencies
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The Bloomberg Dollar Spot Index rose 0.1%
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The euro fell 0.2% to $1.0868
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The Japanese yen was little changed at 130.15 per dollar
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The offshore yuan fell 0.4% to 6.7628 per dollar
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The Australian dollar fell 0.1% to $0.7105
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The British pound fell 0.3% to $1.2370
cryptocurrencies
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Bitcoin fell 0.3% to $23,014.86
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Ether fell 1.3% to $1,582.9
Bind
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The 10-year government bond yield rose three basis points to 3.52%
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Japan’s 10-year yield rose 1.5 basis points to 0.475%
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Australia’s 10-year yield rose five basis points to 3.56%
raw materials
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West Texas Intermediate crude rose 0.4% to $81.32 a barrel
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Spot gold fell 0.3% to $1,922.47 an ounce
This story was created with the support of Bloomberg Automation.
–Assisted by Richard Henderson and Matthew Burgess.
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