Asia Stocks Fall, Led by China; Treasuries Rally: Markets Wrap

(Bloomberg) — A gauge of Asian equities fell on Friday amid a weak tone in markets ahead of Thanksgiving in the US. Treasuries rose as business resumed after the holiday.

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Hong Kong-listed technology stocks led losses in Chinese shares as investors weighed recent gains against a spurt in Covid-19 infections and lockdown-like restrictions affecting swathes of Beijing.

US stock futures advanced following comments from Federal Reserve officials that support the case for a slower pace of interest rate hikes. The dollar is headed for the fourth day of decline.

Malaysia’s ringgit gains have been fueled by the appointment of a new prime minister, which has eased the political impasse that has gripped the country since the recent elections.

The victory came after the central bank governor said he needed to see strong signs that inflation is under control before discussing any possibility of a pivot away from policy tightening.

The yield on Japan’s benchmark 10-year bond rose a basis point to 0.25%, the top of the central bank’s target band, as Tokyo’s inflation gathered further momentum to hit its fastest pace in 40 years.

US markets were closed on Thursday and will have a short session on Friday.

Oil headed for a third weekly loss as the European Union weighs a higher-than-expected price cap on Russian crude flows and recession concerns threaten the outlook for energy demand.

Gold was ready for modest weekly gains.

The outlook for Chinese markets is improving despite the current surge in virus cases, according to Jun Bei Liu, a portfolio manager at Tribeca Investment Partners.

“Things will get better over the next 12 months. We’ve seen this playbook before in other economies,” she said on Bloomberg Television. “We’ll start to see improved performance very soon over the next few quarters.”

Some key moves in the markets:

shares

  • S&P 500 futures were up 0.3% as of 1:23 p.m. in Tokyo.

  • Nasdaq 100 futures rose 0.4%.

  • The topics index was slightly changed

  • The S&P ASX index rose 0.2%

  • Hang Seng index fell 0.9%

  • Shanghai Composite Index rose 0.4%

  • Euro Stoxx 50 futures were little changed

Currencies

  • The Bloomberg Dollar Spot Index fell 0.1%

  • The euro rose 0.2% to $1.0428

  • The Japanese yen was little changed at 138.43 per dollar

  • The offshore yuan rose 0.1% to 7.1613 per dollar

cryptocurrency

  • Bitcoin fell 0.4% to $16,483.33

  • Ether fell 0.8% to $1,185.86

bond

  • The yield on the 10-year Treasury fell four basis points to 3.65%

  • Japan’s 10-year yield rose one basis point to 0.25%

  • Australia’s 10-year yield rose four basis points to 3.58%

Goods

  • West Texas Intermediate crude rose 0.6% to $78.44 a barrel

  • Spot gold rose 0.3% to $1,760.01 an ounce

This story was produced with assistance from Bloomberg Automation.

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