Asian stocks halt four weeks of losses, Pound drops; Here are the main market moves
Asian stocks headed for their first weekly advance in five as trade tensions appeared to ease after China refrained from detailing retaliation plans against threatened U.S. tariff increases. The pound slipped on the latest woes from the Brexit quagmire.
Shares in Japan, Hong Kong and South Korea all rose Friday, while Chinese and Australian stocks dipped. Technology shares led gains in the U.S. overnight as the Nasdaq 100 Index hit a fresh high and the S&P 500 climbed to within 3 percent of its record. The pound declined to a one-week low as President Donald Trump warned U.K. Prime Minister Theresa May that her Brexit proposal could “kill” any future U.S. trade deal. Ten-year Treasury yields were little changed while West Texas crude retreated toward $70 a barrel.
Officials in Beijing appear to be toning down their responses to President Donald Trump’s tariff threats, amid a slowing economy, falling stock market and weakening currency. China’s exports in June beat estimates, while imports slowed much more than expected, official data showed Friday. Gross domestic product report for the second quarter is due for release on Monday.
Despite optimism a bumper earnings season can propel equities higher, there remains disagreement as to length of the economic cycle. Former U.S. Treasury official Jim Millstein says the next economic downturn could strike in less than two years, while Guggenheim Partners’ Scott Minerd says there is now a higher chance of a deep U.S. recession as soon as next year.
Elsewhere, haven currencies continued a retreat with the yen dropping and the Swiss franc holding losses. The two-year Treasury yield rose to a new multi-year high on a closing basis, flattening the curve further. The Singapore dollar showed little reaction to second quarter data showing the economy expanded at a slower pace than forecast.
These are some events to look out for the remainder of this week:
- Earnings season gets into gear with JPMorgan Chase & Co. and Citigroup Inc. among the largest companies due to give results, as well as India’s Infosys Ltd.
And here are the main market moves:
- Japan’s Topix index advanced 0.7 percent as of 12:28 p.m. in Tokyo.
- Hong Kong’s Hang Seng added 0.5 percent.
- The Shanghai Composite lost 0.1 percent.
- Australia’s S&P/ASX 200 Index slid less than 0.1 percent.
- Futures on the S&P 500 Index rose 0.2 percent. The underlying gauge climbed 0.9 percent Thursday.
- The MSCI Emerging Market Index headed for its first weekly advance in five.
- The Japanese yen slipped 0.1 percent to 112.62 per dollar.
- The offshore yuan slid 0.1 percent to 6.6888, reversing gains.
- The Bloomberg Dollar Spot Index added 0.1 percent.
- The euro was little changed at $1.1673.
- The British pound declined 0.1 percent to $1.3188.
- The yield on 10-year Treasuries was little changed at 2.85 percent.
- Australian 10-year government bond yields were steady at 2.63 percent.
- West Texas Intermediate crude dropped 0.1 percent to $70.23 a barrel.
- Gold was little changed at $1,247.98 per ounce.