Asia Stocks Eye Mixed Open, U.S. Futures Climb: Markets Wrap




  • In Business
  • 2021-04-07 23:49:40Z
  • By Bloomberg
 

(Bloomberg) -- Asian stocks are poised for a mixed open and U.S. futures gained Thursday as investors mull the latest insights into the Federal Reserve's commitment to supportive policy.

Futures dipped in Japan and Hong Kong and climbed in Australia. U.S. futures rose after modest gains took the S&P 500 Index to another record close, despite dwindling volume on U.S. exchanges. Rallies in technology giants including Apple Inc. helped push the Nasdaq 100 higher. The dollar held gains and Treasury yields edged higher in the U.S. session.

Fed officials were united on the need to see more progress on the recovery before scaling back their massive bond-buying program, according to minutes from last month's meeting released Wednesday. Policy makers have downplayed inflation risks, maintaining that the recent surge in Treasury yields reflects stronger growth prospects. Traders have scaled back their most-aggressive positioning for interest rates to start rising by the end of next year.

"The rate side is still somewhat front-and-center, and probably the biggest risk to what is going on with equity valuations," said Mark Heppenstall, chief investment officer at Penn Mutual Asset Management. "Clearly, there's been a repricing of inflation expectations higher this year, and at times, the stock market has struggled with it."

Meanwhile, Treasury Secretary Janet Yellen unveiled details of a tax plan to recoup $2 trillion in overseas corporate profits to help fund the government's spending initiatives, allowing it to avoid relying on more borrowing that could drive rates higher.

Some key events to watch this week:

The 2021 Spring Meetings of the IMF and the World Bank Group take place virtually. Federal Reserve Chairman Jerome Powell takes part in a panel about the global economy on Thursday.Japan releases its balance of payments numbers Thursday.China's consumer and producer prices data are due Friday.

These are some of the main moves in markets:

Stocks

S&P 500 futures rose 0.3% as of 8:44 a.m. in Tokyo. The S&P 500 gained 0.2%.Nikkei 225 futures fell 0.1%.Australia's S&P/ASX 200 Index futures rose 0.5%.Hong Kong's Hang Seng Index futures fell 0.7%.

Currencies

The yen was little changed at 109.84 per dollar.The offshore yuan was at 6.5508 per dollar.The Bloomberg Dollar Spot Index was steady.The euro was little changed at $1.1872.

Bonds

The yield on 10-year Treasuries rose one basis point to 1.67%.

Commodities

West Texas Intermediate crude fell 0.3% to $59.57 a barrel.Gold was at $1,737.05 an ounce.

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