Asia Stocks to Start November Mixed; Dollar Gains: Markets Wrap

(Bloomberg) -- Stocks in Asia were poised for a muted start Thursday after global equities rallied on the final two days of what was still their worst month in more than six years. The dollar added to a 16-month high and Treasuries slipped as U.S. stocks climbed.

Futures signaled gains for equities in Hong Kong and China, while Japanese stocks were seen opening slightly lower. Australian shares advanced as trading started. Technology giants rose and the S&P 500 Index posted its biggest two-day surge since February after Facebook’s earnings topped expectations. China’s yuan remains at the weakest level in a decade as China’s leadership signaled that further stimulus measures are being planned. The dollar strengthened on better-than-expected private payrolls data, lifting the 10-year Treasury yield to 3.14 percent.

Firm U.S. economic data and a strongly worded statement from a China Politburo meeting chaired by President Xi Jinping signaling increased urgency for more measures to combat the slowing economy helped buoy sentiment toward risk assets. Bulls are hoping equities can build on a recovery at the end of October, that marked the worst month for global shares since May 2012. The focus turns to Apple Inc. earnings Thursday, then to the monthly U.S. jobs report Friday.

Elsewhere, oil capped its worst month in more than two years with a decline. The Indian rupee will be back in focus after paring a drop Wednesday as the finance ministry moved to diffuse growing tensions with the central bank. The pound rose on hopes for progress in Brexit negotiations between the U.K. and European Union.

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Here are some key events still to come this week:

• Earnings season includes: Macquarie, Apple, Alibaba, Credit Suisse, Exxon Mobil, and Shell.
• A monetary policy decision is due in the U.K. Thursday
• On Friday, the final U.S. jobs report before the November midterm elections may show hiring improved and that the unemployment rate held at a 48-year low.

And these are the main moves in markets:

Stocks

• Futures on Japan’s Nikkei 225 slid 0.3 percent in Singapore.
• FTSE China A50 Index futures added 0.2 percent.
• Australia’s S&P/ASX 200 Index advanced 0.5 percent.
• Futures on Hong Kong’s Hang Seng rose 0.4 percent.
• S&P 500 futures were little changed. The S&P 500 advanced 1.1 percent. The Nasdaq composite added 2 percent.

Currencies

• The yen was steady at 112.94 per dollar.
• The offshore yuan held at 6.9729 per dollar.
• The Bloomberg Dollar Spot Index was little changed after increasing 0.2 percent to the highest in more than 17 months Wednesday.
• The euro bought $1.1318.

Bonds

• The yield on 10-year Treasuries increased two basis points to 3.14 percent.
• Australia’s 10-year bond yield was steady at 2.63 percent.

Commodities

• West Texas Intermediate crude dropped 0.5 percent to $64.99 a barrel, on track for a fourth consecutive decline.
• Gold futures added 0.1 percent to $1,215.84 an ounce.

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