(Bloomberg) — Asian stocks rose, supported by signs of stability in the Chinese economy and a weaker dollar.
Most read from Bloomberg
Shares in Hong Kong and Australia rose after data showed China recorded the highest growth in retail sales in eight months. Japanese indices rose by about 0.8%, supported by the weakness of the yen. US contracts fell.
A measure of the dollar halted a five-day gain that was helped by Federal Reserve Chairman Jerome Powell’s comments that the central bank would not be in a rush to cut interest rates. Two-year US bond yields were little changed.
“We think a rate cut in December is on the cards, and we think there will be at least two cuts next year,” Salman Niaz, head of global fixed income for Asia-Pacific, a former employee in Japan at Goldman Sachs Asset Management, told Bloomberg TV. .
“Obviously, the strength of the dollar has taken away some local currency bond yields in emerging markets, but we believe the most attractive opportunity at this stage lies on the hard currency side of emerging markets,” Niaz said, referring to dollar-denominated bonds. religion.
Friday’s action provides a welcome respite to emerging market assets after they struggled for most of the week amid developments related to US President-elect Donald Trump’s government picks and changing interest rate expectations. A measure of emerging market stocks is still on pace for its worst week since June 2022, while a separate index of emerging market currencies is close to erasing its gains for the year.
South Korean stocks fell on Friday, under pressure from battery makers after news that Donald Trump may cancel the tax exemption on the purchase of electric cars. The won has come into focus after the country was added to the US Treasury Department’s “watch list” for foreign exchange practices.
Among the key earnings, Alibaba Group Holding Ltd. announced later Friday after another Chinese consumer company JD.com Inc reported a moderate revenue expansion.
Elsewhere, data scheduled for release in the region includes GDP for Malaysia and Hong Kong. Markets are closed in India.
In commodities, oil trended toward a weekly decline, affected by the impact of the strength of the dollar and fears that the global market will turn into a glut next year. Gold settled near a two-month low.
Flexible economy
Data earlier Thursday in the United States showed that producer prices beat consensus expectations. Jobless claims were below expectations and touched their lowest level since May.
Many policymakers have urged a cautious approach to further interest rate cuts in their statements this week, in light of the strong economy, persistent inflation fears and widespread uncertainty. Their comments come as the stock market shows signs of fatigue following the post-election rally that prompted calls for a pause, with several measures highlighting traders’ “extended” optimism.
In the United States, the Standard & Poor’s 500 index fell by 0.6%, while the Nasdaq 100 index fell by 0.7%. Automakers like Tesla Inc. have declined. and Rivian Automotive Inc. After Reuters reported that US President-elect Trump plans to cancel the $7,500 consumer tax credit for purchasing electric cars. The Walt Disney Company jumped on an earnings beat.
Main events this week:
-
US Retail Sales, Imperial Manufacturing, Industrial Production, Friday
Some key movements in the markets:
Stocks
-
S&P 500 futures were down 0.3% as of 11:33 a.m. Tokyo time.
-
Japan’s Topix index rose 0.9%.
-
Australia’s S&P/ASX 200 rose 0.5%.
-
The Hang Seng Index in Hong Kong rose 0.1%.
-
The Shanghai Composite Index fell by 0.1%.
-
Euro Stoxx 50 futures fell 0.5%
Currencies
-
The Bloomberg Dollar Spot Index was little changed
-
There was little change in the euro at $1.0539
-
The Japanese yen fell 0.1 percent to 156.44 yen to the dollar
-
The yuan in external transactions rose 0.1 percent to 7.2448 per dollar
Cryptocurrencies
-
Bitcoin fell 0.2% to $88,075.74
-
Ethereum fell 1.5% to $3,071.01
Bonds
-
The yield on the 10-year Treasury note rose by three basis points to 4.46%.
-
The yield on 10-year Japanese bonds rose 1.5 basis points to 1.070%.
-
The Australian 10-year bond yield fell five basis points to 4.64%.
Goods
-
West Texas Intermediate crude fell 0.6% to $68.26 a barrel
-
Spot gold rose 0.1 percent to $2,567.43 per ounce
This story was produced with assistance from Bloomberg Automation.
Most read from Bloomberg Businessweek
©2024 Bloomberg L.P