(Bloomberg) — Stocks in Asia look set for a mixed day with traders hoping for another positive session in China while Japan markets opened lower.
Most Read from Bloomberg
Japanese shares slipped and government bond yields surged following slightly more hawkish tone by the Bank of Japan. Governor Kazuo Ueda said on Tuesday that the certainty of achieving the BOJ’s projections has continued to gradually increase.
Equity futures point to gains in Hong Kong and China shares, with positive spillover expected from a near 5% gain in the Nasdaq Golden China Dragon Index overnight. The S&P 500 and Nasdaq 100 closed at all-time highs for a second straight day.
Stocks have largely been immune to the Federal Reserve’s warnings that interest-rate cuts are some way off. But some corners of Wall Street are starting to question if the rally will endure as swaps traders in the US rein in bets of a March rate cut.
“The excitement is kind of gone at this point and everybody’s sobering up a little bit after the pivot party,” Emily Roland, the co-chief investment strategist of John Hancock Investment Management, said by phone. “Multiple expansions are starting to get a little tapped out here.”
The mood has been more downbeat in China as uncertainties over the economic outlook led to a heavy stock rout. The selloff took a breather Tuesday after Bloomberg News reported Beijing is considering a market rescue package.
A gauge of the dollar was little changed after two days of gains. Treasury yields steadied in Asian trading after mostly edging higher Tuesday with the benchmark 10-year at 4.14%. The rate on policy-sensitive two-year fell 3 basis point to 4.34%.
The yen strengthened slightly against the greenback after Governor Ueda’s commentary, which market watchers say supports the view that the central bank will raise rates at some point in the first half of this year.
New Highs
US equities gained Tuesday ahead of an onslaught of company reports that promise insight into the state of the global economy.
In late trading, Netflix Inc. jumped more than 7% after reporting subscriber growth that topped estimates. Texas Instruments Inc. tumbled roughly 4% after a disappointing revenue forecast, its chipmaking rivals also slid.
Read more: Goldman Says Momentum Traders to Sell Stocks in ‘Every Scenario’
Bitcoin rebounded after slumping for a second day — retail investors have been growing more bearish on the world’s largest cryptocurrency, according to a Deutsche Bank report.
Meanwhile, oil is little changed after West Texas Intermediate crude dipped below $75 a barrel following the US’s advised caution for vessels transiting the Red Sea, but didn’t advise pausing shipping traffic.
Key events this week:
-
New Hampshire holds first-in-the-nation presidential primary, Tuesday
-
Canada rate decision, Wednesday
-
Eurozone S&P Global Services & Manufacturing PMI, Wednesday
-
US S&P Global Services & Manufacturing PMI, Wednesday
-
Eurozone ECB rate decision, Thursday
-
Germany IFO business climate, Thursday
-
US GDP, initial jobless claims, durable goods, wholesale inventories, new home sales, Thursday
-
Japan Tokyo CPI, Friday
-
US personal income & spending, Friday
-
Bank of Japan issues minutes of policy meeting, Friday
Some of the main moves in markets:
Stocks
-
S&P 500 futures rose 0.2% as of 9:12 a.m. Tokyo time
-
Hang Seng futures rose 2.1%
-
Japan’s Topix fell 0.2%
-
Australia’s S&P/ASX 200 was little changed
-
Euro Stoxx 50 futures fell 0.3%
-
Nasdaq 100 futures rose 0.2%
Currencies
-
The Bloomberg Dollar Spot Index was little changed
-
The euro was little changed at $1.0859
-
The Japanese yen rose 0.1% to 148.19 per dollar
-
The offshore yuan was little changed at 7.1658 per dollar
-
The Australian dollar was little changed at $0.6583
Cryptocurrencies
-
Bitcoin rose 1.5% to $39,798.22
-
Ether rose 1.5% to $2,235.97
Bonds
-
The yield on 10-year Treasuries was little changed at 4.13%
-
Japan’s 10-year yield advanced 6.5 basis points to 0.700%
-
Australia’s 10-year yield advanced seven basis points to 4.26%
Commodities
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Youkyung Lee.
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.