Asia Stocks to Track U.S. Rise on Economic Outlook: Markets Wrap

1 / 2

Asia Stocks to Track U.S. Rise on Economic Outlook: Markets Wrap

Sunil Jagtiani
·3 min read

(Bloomberg) -- Asian stocks look set to climb Friday after technology companies led a Wall Street rebound on economic optimism and easing concern about the possibility of reduced U.S. stimulus. The dollar held a decline.

Futures were in the green in Japan, Australia and Hong Kong. Nearly all major industry groups in the S&P 500 climbed and gains in stocks like Apple Inc. and Tesla Inc. helped the Nasdaq 100 rally past its 50-day moving average. A drop in U.S. initial jobless claims put the focus back on the economic recovery and away from fears that price pressures imperil loose financial conditions. Contracts on the tech-heavy gauge and the S&P 500 fluctuated.

Treasury yields retreated, and weaker-than-expected demand for an auction of 10-year inflation-protected debt suggested confidence in the Federal Reserve’s narrative that the recent acceleration in inflation is unlikely to be sustained. Oil slid and the pause in this year’s commodity boom continued.

Gold is around the highest price in more than four months. Its claimed virtual rival, Bitcoin, steadied after a volatile cryptocurrency slump this week.

The global economic revival, the risk of a significant pick up in inflation and Covid-19 flareups in some parts of the world continue to shape market moves. For now, growth optimism is overshadowing the latest Fed minutes, which flagged the possibility in upcoming policy meetings of a debate on scaling back the exceptional stimulus that’s bolstered a variety of assets.

“While inflation has been the star of the show, keep in mind that the Fed’s mandate is twofold, with employment as the other side,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “The jobless claims read shows once again that we’re heading in the right direction, but we’re a ways away from where we were pre-pandemic.”

Oil is trading around the lowest in nearly a month. Traders were assessing the likelihood of a renewed nuclear deal with Iran and the potential removal of sanctions on the country’s crude exports.

Elsewhere, President Joe Biden’s tax agenda was in the spotlight.

The Treasury Department detailed the administration’s proposed measures to raise $700 billion in additional revenue over a decade through Internal Revenue Service enforcement, including a requirement for cryptocurrency transfers worth $10,000 or more to be reported to tax authorities. Separately, the U.S. also called for a global minimum corporate tax of at least 15%.

Here are some key events this week:

Data on existing U.S. home sales for April are due on May 21Euro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22

These are some of the main moves in markets:

Stocks

S&P 500 futures were little changed as of 7:44 a.m. in Tokyo. The index rose 1.1%.Nasdaq 100 contracts added 0.1%. The gauge rose 1.9%Nikkei 225 futures were up 0.2%S&P/ASX 200 contracts rose 0.4%Hang Seng futures advanced 0.4% earlier

Currencies

The Bloomberg Dollar Spot Index was steady after falling 0.4%The euro was at $1.2228The British pound was at $1.4190The Japanese yen traded at 108.79 per dollarThe offshore yuan was at 6.4333 per dollar

Bonds

The yield on 10-year Treasuries declined five basis points to 1.63%

Commodities

West Texas Intermediate crude trimmed a decline, rising 0.2% to $62.03 a barrelGold was at $1,876.73 an ounce

More stories like this are available on bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2021 Bloomberg L.P.

Recommended Stories

  • Viruses and malware on Mac computers have reached an 'unacceptable' level, according to Apple exec Craig Federighi

    Apple's computers are facing major issues from viruses and malware, which Apple said has reached "unacceptable" levels in a sworn testimony.

  • Microsoft to unplug Internet Explorer as it seeks edge in browser war

    Launched in 1995, Internet Explorer became the dominant browser for over a decade as it was bundled with Microsoft's Windows operating system that came pre-installed in billions of computers. The browser, however, started losing out to Google's Chrome in the late 2000s and has become a subject of countless internet memes for its sluggishness in comparison to its rivals.

  • Initial Jobless Claims in U.S. Decline to Fresh Pandemic Low

    (Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.Applications for U.S. state unemployment insurance fell last week to a fresh pandemic low, signaling steady improvement in the job market as remaining business restrictions are lifted.Initial claims in regular state programs decreased by 34,000 to 444,000 in the week ended May 15, Labor Department data showed Thursday. The median estimate in a Bloomberg survey of economists called for 450,000 applications. The prior week’s figure was revised up slightly, to 478,000.The drop in jobless applications shows the labor market continues to thaw as more Americans get vaccinated and return to work. Nonetheless, the level of claims remains significantly higher than pre-pandemic levels and indicates the labor market is still far from a full recovery.The report, which showed the third straight drop in initial claims, coincides with the survey week for the Labor Department’s monthly jobs report.Claims data have been volatile during the pandemic amid backlogs, fraud and new programs. Also, more than 20 states have recently announced plans to pull out of federal unemployment benefit programs amid a debate about whether generous aid is making it more difficult for employers to hire.Georgia, Kentucky and Texas led those states with the biggest declines last week, the latest Labor Department data show.Continuing claims for ongoing state benefits unexpectedly jumped 111,000 in the week ended May 8, the largest weekly increase since the end of November.Initial applications for Pandemic Unemployment Assistance for self-employed and gig workers decreased slightly last week.(Adds graph)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Dow ends up nearly 200 points, stocks snap 3-day skid on brighter economic data

    Stocks close higher Thursday, as upbeat economic data helps investors shake off worries that a pickup in inflation could force the Federal Reserve to begin reining in its accommodative monetary policy sooner than expected.

  • Lennar (LEN) Gains But Lags Market: What You Should Know

    Lennar (LEN) closed the most recent trading day at $95.29, moving +0.46% from the previous trading session.

  • Wall Street ends to snap 3-day losing streak as technology stocks rise higher

    Wall Street's main indexes rebounded on Thursday after a three-day slide, buoyed by gains in technology stocks as the smallest weekly jobless claims since the start of a pandemic-driven recession lifted the mood. "There's a big risk, regulatory risk, to crypto that's not fully appreciated," said Jay Hatfield, founder and chief executive of Infrastructure Capital Management in New York. Wall Street's main indexes fell on Wednesday, extending losses since, after minutes from the Federal Reserve's meeting last month indicated some policymakers thought it would be appropriate to discuss easing of crisis-era support, such as tapering bond purchases, in upcoming meetings if the strong economic momentum is sustained.

  • Bitcoin Falls On New Crackdown But Musk Rallies Faithful; Coinbase Knocked Out Briefly

    Bitcoin plunged more than 30% in a 24-hour period to its lowest level since January, as China widens its crackdown on cryptocurrencies.

  • U.K. Cases of Covid Variant From India More Than Double in Week

    (Bloomberg) -- The number of U.K. cases of a worrying coronavirus variant from India more than doubled for a second week as authorities also monitor a new mutation of the virus, adding fresh doubt to U.K. plans to fully unlock the economy.Health officials have now detected 3,424 cases of the B1.617.2 variant, also known as VOC-21APR-02, Public Health England said Thursday in a statement. That’s up from 1,313 last week, and 520 a week earlier. They’re also investigating a mutation called VUI-21MAY-01, with 49 cases logged so far.Prime Minister Boris Johnson said last week that he was “anxious” about the Indian variant, and warned that it could affect the country’s plans to reopen the remaining bits of the economy from lockdown on June 21. Those concerns prompted authorities to alter the country’s vaccination program, shortening the interval between doses. And even though stage 3 of the government’s reopening plan went ahead Monday, the fast spread of the new variant remain a cause for concern.“As we start to get back to normal life, it is very important that we do not become complacent,” Health Security Agency Chief Executive Officer Jenny Harries said in PHE’s statement. “All of us need to remain responsible and vigilant.”Nevertheless, ministers and officials this week have struck an increasingly optimistic tone, with the premier saying Wednesday that he has “increasing confidence” vaccines are working against all coronavirus variants. More than 70% of U.K. adults have now had at least one dose of vaccine, making the country’s program one of the most advanced in the world.Most of the 49 cases of the new variant under investigation are in Yorkshire and the Humber, in Northern England, according to PHE. “There is currently no evidence that this variant causes more severe disease or renders the vaccines currently deployed any less effective,” it said.On Monday, international holidays were allowed again, and pubs and restaurants were allowed to serve customers indoors. The government has said the final stage of reopening -- which will be June 21 at the earliest, is dependent on the evolution of the virus. Government scientists are trying to determine how much more transmissible it is than the fast-spreading Kent variant that led to the country’s third lockdown in January.More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Tilray Just Got A Lot Bigger — So Is The Pot Stock A Buy?

    Tilray has fallen from its massive run this year, but it completed its planned merger with Aphria. Is TLRY stock a buy right now?

  • Stocks End Higher After Improving Jobless Claims Data

    Tech stocks and cryptocurrencies closed higher following a volatile day Wednesday. Bitcoin was back to the $40,000 level and Virgin Galactic was up about 15%. U.S. stocks rose on Thursday after initial jobless claims came in lower than expected.

  • CollPlant Biotechnologies Ltd. Sponsored ADR (CLGN) Outpaces Stock Market Gains: What You Should Know

    CollPlant Biotechnologies Ltd. Sponsored ADR (CLGN) closed at $14.68 in the latest trading session, marking a +1.91% move from the prior day.

  • Schnitzer Steel (SCHN) Stock Sinks As Market Gains: What You Should Know

    Schnitzer Steel (SCHN) closed the most recent trading day at $53.33, moving -0.41% from the previous trading session.

  • 7 Cheap Stocks with Positive Outlooks

    Stick with safe bets when markets uncertainties rule.

  • CNN: Trump Justice Department seized reporter phone records

    The Trump administration Justice Department secretly obtained the 2017 phone records of a CNN correspondent, the network said Thursday in revealing the existence of another apparent leak investigation. The revelation comes two weeks after The Washington Post disclosed that the Justice Department had last year seized phone records belonging to three current and former journalists. CNN said the Justice Department informed Pentagon correspondent Barbara Starr in a May 13 letter that it had obtained phone and email records covering a two-month period between June 1 and July 31, 2017.

  • Women kidnap 77-year-old from Goodwill, steal $10,000 of her money, Georgia cops say

    The woman was able to get away safely.

  • CNN won't discipline Chris Cuomo for advising his brother to fight sexual harassment allegations

    A Washington Post report says Chris Cuomo participated on staff calls to help Gov. Andrew Cuomo manage his crisis.

  • Nearly 1,000 Apple employees sign letter calling on Tim Cook to issue statement supporting Palestinians

    Employees criticized Apple for staying silent, calling on it to acknowledge Palestinians living under an "illegal occupation," The Verge reported.

  • Andrew Yang said he'd create homeless shelters in NYC dedicated to domestic violence victims. They already exist.

    Yang has made a few similar blunders in his New York City mayoral campaign, specifically in policy proposals that are already in place in some form.

  • Top Arizona elections official expresses 'grave concerns' voting equipment compromised by Cyber Ninjas, tells Maricopa County to toss voting machines used in GOP 'audit'

    Secretary of State Katie Hobbs said the election equipment has been "compromised" after state Republicans handed it to a private firm, Cyber Ninjas.

  • Minnie Pearl, the dog, was missing more than 200 days. She’s now back with NC family

    “We just didn’t know if we would ever see her again.”