Asia Stocks Mixed as Commodites Drop; Yields Dip: Markets Wrap

Asia Stocks Mixed as Commodites Drop; Yields Dip: Markets Wrap
Andreea Papuc
·3 min read

(Bloomberg) -- Asian stocks traded mixed Tuesday after their U.S. peers closed at a record and a bond rally stalled ahead of a key Federal Reserve meeting. Commodities retreated.

Japanese shares gained, while Australian stocks outperformed after a holiday. Benchmarks in China and Hong Kong fell, as they too reopened after a break, amid a slide in metals prices led by copper. U.S. futures edged higher after gains in technology shares pushed the S&P 500 to a record Monday. Still, three stocks fell for every one that rose. The 10-year Treasury yield pulled back under 1.5%, while the dollar was steady.

Bitcoin continued to gyrate amid a barrage of comments, briefly climbing above $41,000 only to pull back. The digital currency got a boost after veteran hedge fund manager Paul Tudor Jones re-endorsed the coin in a television interview.

Investors are awaiting clues from the Fed about a timetable for scaling back emergency monetary stimulus after a pullback in bond yields eased tapering concerns. Expectations are that the central bank will reaffirm the pace of bond purchases this week, even if it delivers projections for interest-rate liftoff in 2023, according to economists surveyed by Bloomberg. The decision is due Wednesday.

At some point, “brushing inflation worries aside will no longer convince investors, so we’ll continue to pay attention to what the Fed says about its growth, inflation and policy rate expectations,” Marcella Chow, JPMorgan Asset Management global market strategist, said on Bloomberg Television.

Elsewhere, the Australian dollar dipped after central bank meeting minutes showed members thought it would be premature to consider ceasing its bond-buying scheme. Crude oil fluctuated around $71 a barrel.

For market commentary, follow the MLIV blog.

Here are some key events to watch this week:

An EU-U.S. summit takes place in Brussels on TuesdayData on U.S. industrial production, producer prices and retail sales come TuesdayThe Federal Open Market Committee rate decision comes on Wednesday, with a news conference from Jerome Powell afterU.S. President Joe Biden and Russia’s Vladimir Putin meet Wednesday in GenevaU.S. Treasury Secretary Janet Yellen testifies before a House panel Thursday on the federal budgetRate decisions come from Switzerland and Norway on ThursdayThe Bank of Japan’s monetary policy decision is on Friday

These are some of the main moves in markets:

Stocks

S&P 500 futures rose 0.1% as of 11:30 a.m. in Tokyo. The S&P 500 rose 0.2% to a record highNasdaq 100 futures rose 0.1%. The Nasdaq 100 rose 0.9% to a record highTopix index rose 0.5%Australia’s S&P/ASX 200 Index rose 0.9%South Korea’s Kospi index was little changedHang Seng Index fell 1.1%Shanghai Composite Index fell 0.8%Euro Stoxx 50 futures rose 0.3%

Currencies

The Japanese yen traded at 110.11 per dollarThe offshore yuan was at 6.4047 per dollarThe Bloomberg Dollar Spot Index was flatThe euro was little changed at $1.2126

Bonds

The yield on 10-year Treasuries fell one basis point to 1.48%Australia’s 10-year yield was steady at 1.49%

Commodities

West Texas Intermediate crude rose 0.2% to $71.04 a barrelGold slipped 0.2% to $1,862.51 an ounceLME copper futures fell 2.5%

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