Asian Stocks Fall, Led by China; Treasury Rally: Markets Wrap

(Bloomberg) — A measure of Asian common shares fell amid upbeat sentiment in markets Friday after U.S. Thanksgiving. The funds rose as trading resumed after the holiday.

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Hong Kong-listed technology stocks led Chinese shares lower as investors weighed recent gains against a rise in Covid-19 infections and lockdown-like restrictions affecting areas in Beijing.

US stock futures rose after comments from Federal Reserve officials supporting the case for a slower pace of interest rate hikes. The dollar changed after a three-day losing streak.

The Malaysian ringgit’s gains increased as the appointment of a new prime minister cleared the political gridlock that has gripped the nation since recent elections.

The win extended to this month’s highs after the central bank governor said he needs to see strong signs that inflation is under control before discussing any prospect of a pivot from policy tightening.

The yield on Japan’s benchmark 10-year bond rose to 0.245%, close to the top of the central bank’s target bond, after Tokyo inflation gathered pace to reach its fastest pace in 40 years. The yen fell slightly.

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

Oil posted its third weekly loss as the European Union placed a higher-than-expected price cap on Russian crude flows and concerns about a slowdown threatened the outlook for energy demand.

Gold was little changed but was poised for a moderate weekly gain.

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

“In the next 12 months things will improve. We have seen this playbook before in other economies,” she said on Bloomberg Television. “We will start to see outperformance very soon in the coming quarters.”

Some of the main moves in the markets:

Stock

  • S&P 500 futures rose 0.2% at 11:34 am in Tokyo.

  • Nasdaq 100 futures rose 0.4%.

  • The Topix Index fell 0.1%

  • The S&P ASX Index rose 0.3%

  • Hang Seng Index fell 1%

  • The Shanghai Composite Index rose 0.5%

  • Euro Stoxx 50 futures were little changed

Currencies

  • The Bloomberg Dollar Spot Index was little changed

  • The euro was little changed at $1.0411

  • The Japanese yen was little changed at 138.63 per dollar

  • The offshore yuan was little changed at 7.1648 per dollar

Cryptocurrency

  • Bitcoin fell 0.3% to $16,493.98

  • Ether fell 0.9% to $1,185.33

Bonds

  • The yield on 10-year Treasuries fell three basis points to 3.66%

  • Japan’s 10-year yield was at 0.245%

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

Commodities

  • West Texas Intermediate crude rose 0.5% to $78.31 a barrel

  • Spot gold rose 0.2% to $1,758.35 an ounce

This story was produced with assistance from Bloomberg Automation.

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