Asia Stocks Eye Steady Open After U.S. Neared High: Markets Wrap

(Bloomberg) -- Asian stocks look set for a cautious start Friday after U.S. shares edged toward an all-time high and Treasuries climbed as traders digested some mixed economic data and the latest spate of earnings.

Equity futures dipped in Australia and Hong Kong. Japan is closed for a holiday. The S&P 500’s biggest three-day advance since April took it nearer a new peak, while the Nasdaq 100 closed at a record. Technology firms like Microsoft Corp. rallied and cyclical stocks lagged. Twitter Inc. jumped on an upbeat outlook, but Intel Corp. fell on a lackluster sales forecast. U.S. stock futures rose.

Longer-term Treasuries snapped a two-day drop and strong demand for an auction of 10-year inflation-protected securities produced a record-low yield. The dollar was steady and the euro lagged Group-of-10 peers on the European Central Bank’s plan to maintain ultra-loose monetary policy as long as needed.

In China, regulators are considering serious, perhaps unprecedented, penalties for Didi Global Inc. after its controversial initial public offering last month, once again highlighting the pressure on the nation’s tech giants.

Global stocks are on course for a modest weekly gain, bolstered by generally robust corporate earnings and stimulus support. At the same time, July’s decline in 10-year U.S. Treasury yields may for some signal concern that economic growth could be peaking, in part as the delta coronavirus strain forces mobility curbs in some countries.

“One of the most under-appreciated things about the equity markets right now is just how much these earnings have risen, and how much analysts have had to revise their earnings estimates up,” Tracie McMillion, head of global asset allocation strategy at Wells Fargo Investment Institute, said on Bloomberg Television. She added she’s monitoring if the delta variant affects consumer behavior, as well as the shift in the recovery from “great to really good.”

The latest U.S. economic reports were mixed, showing sales of previously owned homes rose for the first time in five months, while jobless claims unexpectedly climbed.

Meanwhile, the Summer Olympics officially begin in Tokyo, though for the first time in history events will be held without spectators due to Covid-19 restrictions. In the U.S., a recent rise in infections shows no signs of abating as the delta variant spreads through unvaccinated sections of the population.

Elsewhere, oil held around the highest in a week amid expectations of tightening supplies as demand recovers. Bitcoin traded just above $32,000.

These are some of the main moves in markets:

Stocks

• S&P 500 futures were up 0.2% as of 8:52 a.m. in Sydney. The S&P 500 rose 0.2%
• Nasdaq 100 futures climbed 0.3%. The Nasdaq 100 rose 0.7%
• S&P/ASX 200 futures slipped 0.2%
• Hang Seng futures fell 0.2%

Currencies

• The Bloomberg Dollar Spot Index was little changed
• The euro was at $1.1773
• The Japanese yen was at 110.15 per dollar
• The offshore yuan traded at 6.4748 per dollar

Bonds

• The yield on 10-year Treasuries declined one basis point to 1.28%

Commodities

• West Texas Intermediate crude slipped 0.3% to $71.72 a barrel
• Gold was at $1,807.43 an ounce

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