US rates back up, stocks back down

GLOBAL-MARKETS/VIEW-ASIA:MORNING BID ASIA-US rates back up, stocks back down

Reuters
Published8 Oct 2024, 04:06 AM IST
US rates back up, stocks back down
US rates back up, stocks back down

By Alden Bentley

Oct 7 (Reuters) - A look at the day ahead in Asian markets.

A short-lived conviction that the Fed would stick to a dovish path evaporated after Friday's bet-busting payrolls number, with Treasury yields on Monday backing up above 4% and traders introducing a small chance that November might not yield a rate cut at all.

The Fed rethink cooled Wall Street's jets but prospects for the U.S. economy to skirt a recession would not need to be an impediment to Asia's rally. It will offer mainland Chinese investors a fresh international backdrop when they return on Tuesday from the Golden Week holiday and consider last month's market rescue with rested eyes. Beijing dispensed the most aggressive stimulus measures since the COVID-19 pandemic in a bid to revive the flagging Chinese economy, and traders and investors are now looking for signs to see if the medicine is working.

Yields on the 10-year and two-year notes extended a rise to their highest since late July and mid August, respectively, as fed funds futures realigned to an 85% chance of a quarter point cut in November and a 15% chance that the Fed stands pat at its next meeting. Only a week ago, some were holding out for the Fed to repeat September's 50 bps cut at next month's meeting. The resilient labor market made a case for the Fed to lean hawkish and that sent the S&P 500 down almost one percent. It did not do much for the dollar, which consolidated last week's rally, ending slightly lower against the yen and Swiss franc. Generally, along with those two safe-haven currencies, the dollar retained a bid as acute Middle East tensions threatened to spill into a wider conflict on the anniversary of the Hamas attack on Israel that sparked the war in Gaza.

The dollar fell about half a percent against the yen after rallying above 149 overnight to its highest since Aug. 15.

The yen weakness helped Japan's Nikkei rally almost 2% on Monday, leading a broader rally across the region.

MSCI's broadest index of Asia-Pacific shares climbed almost 1% and its Asia index ex-Japan rose nearly half a percent.

Here are key developments that could provide more direction to markets on Tuesday:

- Australia consumer sentiment (Oct)

- Japan Tankan manufacturing and service indexes (Oct)

- Taiwan trade balance (Sept)

- U.S. 3-year note auction

(Reporting by Alden Bentley in New York; Editing by Bill Berkrot)

Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:8 Oct 2024, 04:06 AM IST
Business NewsNewsUS rates back up, stocks back down

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Tata Steel share price

    150.90
    03:56 PM | 7 NOV 2024
    -2.7 (-1.76%)

    Bharat Electronics share price

    300.20
    03:58 PM | 7 NOV 2024
    -1.65 (-0.55%)

    Bank Of Baroda share price

    262.90
    03:29 PM | 7 NOV 2024
    0.3 (0.11%)

    Indian Oil Corporation share price

    144.20
    03:59 PM | 7 NOV 2024
    -0.45 (-0.31%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Apollo Hospitals Enterprise share price

    7,424.60
    03:40 PM | 7 NOV 2024
    454.75 (6.52%)

    Welspun Corp share price

    798.00
    03:29 PM | 7 NOV 2024
    24.55 (3.17%)

    City Union Bank share price

    181.50
    03:29 PM | 7 NOV 2024
    2 (1.11%)

    Federal Bank share price

    206.00
    03:57 PM | 7 NOV 2024
    1.2 (0.59%)
    More from 52 Week High

    Hindalco Industries share price

    648.35
    03:51 PM | 7 NOV 2024
    -59.9 (-8.46%)

    Trent share price

    6,498.45
    03:59 PM | 7 NOV 2024
    -454.6 (-6.54%)

    Glenmark Pharmaceuticals share price

    1,658.00
    03:29 PM | 7 NOV 2024
    -110.95 (-6.27%)

    Blue Star share price

    1,776.95
    03:56 PM | 7 NOV 2024
    -101.8 (-5.42%)
    More from Top Losers

    Swan Energy share price

    535.60
    03:29 PM | 7 NOV 2024
    39.05 (7.86%)

    KEC International share price

    1,050.30
    03:40 PM | 7 NOV 2024
    74.8 (7.67%)

    Apollo Hospitals Enterprise share price

    7,424.60
    03:40 PM | 7 NOV 2024
    454.75 (6.52%)

    FSN E-Commerce Ventures share price

    192.90
    03:29 PM | 7 NOV 2024
    11.45 (6.31%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      78,575.00-1,790.00
      Chennai
      78,581.00-1,790.00
      Delhi
      78,733.00-1,790.00
      Kolkata
      78,585.00-1,790.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.92/L0.00
      Chennai
      100.80/L0.00
      Kolkata
      104.95/L0.00
      New Delhi
      94.77/L0.00

      Popular in News

        HomeMarketsPremiumInstant LoanMint Shorts