BackAsia stocks, US futures mixed
Equities slid in China and Hong Kong with technology under pressure. Stocks advanced in Japan. S&P 500 and Nasdaq 100 futures fluctuated after AstraZeneca Plc reported a slightly lower efficacy for its vaccine in a U.S. study
PremiumAsian stocks and US equity futures were mixed Thursday as investors weighed economic reopening against concerns about inflation. Oil pared a rally triggered by disruption to shipping after a giant container vessel blocked the Suez Canal.
Equities slid in China and Hong Kong with technology under pressure. Stocks advanced in Japan. S&P 500 and Nasdaq 100 futures fluctuated after AstraZeneca Plc reported a slightly lower efficacy for its vaccine in a U.S. study. A technology slide overnight dragged down the Nasdaq 100 amid a rotation into cyclicals. The dollar steadied around two-week highs.
Traders were also monitoring the impact of a Chinese government proposal for a joint venture with local technology giants that would oversee the lucrative data they collect from hundreds of millions of consumers.
West Texas Intermediate crude fell back to about $60 a barrel, having added more than 5% Wednesday. Tugs and diggers have so far failed to dislodge the ship that ran aground in arguably the world’s most important waterway.
Investors are mulling which sectors of the stock market are best-placed to benefit from faster growth, while monitoring the risks of higher inflation. Both the Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell balanced their positive assessment of the recovery with reminders that it still has a long way to go in a second day of Congressional testimony.
“The reflation trade will have further legs to run," Lale Akoner, BNY Mellon Investment Management senior market strategist, said on Bloomberg TV. “We do see higher inflationary pressures building, higher interest rates and softer dollar to continue."
Decent demand at an auction of five-year Treasury notes helped keep U.S. yields steady, a relief after last month’s disastrous seven-year auction sparked a global selloff in bonds.
These are some key events to watch this week:
• The U.S. Treasury auctions seven-year debt.
• U.S. personal income and spending data on Friday.
These are some of the main moves in financial markets:
Stocks
• S&P 500 futures were little changed as of 10:41 a.m. in Tokyo. The S&P 500 Index fell 0.6%.
• Japan’s Topix Index rose 0.9%.
• China’s Shanghai Composite shed 0.5%.
• Hong Kong’s Hang Seng index fell 1.2%.
• Australia’s S&P/ASX 200 Index rose 0.2%.
• South Korea’s Kospi Index edged up 0.1%.
Currencies
• The yen was at 108.96 per dollar, down 0.2%.
• The offshore yuan was at 6.5330 per dollar.
• The Bloomberg Dollar Spot Index was little changed.
• The euro traded at $1.1811.
• The British pound was at $1.3686 after sinking 0.5%.
Bonds
• The yield on 10-year Treasuries held around 1.62%.
• Australia’s 10-year bond yield rose about five basis points to 1.70%.
Commodities
• West Texas Intermediate crude slipped 1.8% to $60.08 a barrel. It rose 5.9% earlier.
• Gold was at $1,734.91 an ounce.
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