Asian Stocks Climb With Focus on Inflation Data: Markets Wrap




  • In Business
  • 2022-12-09 00:26:20Z
  • By Bloomberg
 

(Bloomberg) -- Asian stocks advanced Friday after US shares posted their first gain this month, with traders awaiting key inflation figures in China and the US.

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Equities edged higher in Japan, South Korea and Australia, while contracts for Hong Kong rose after the S&P 500 rebounded following a rout that put the gauge on the cusp of breaching its average price of the past 100 days.

The dollar was little changes versus most of its major counterparts after falling Thursday as geopolitics-driven appetite for haven investments faded.

Treasury yields held gains from the previous session, with 10-year yields hovering just below 3.5%. Government bond yields inched lower in Australia while those in New Zealand edged higher.

Oil rose at the open in Asia, but headed for a weekly drop of nearly 10% after a volatile session on Thursday on concerns over economic outlook. Gold steadied.

Friday's producer price index for November is one of the final pieces of data Federal Reserve policymakers will see before their Dec. 13-14 policy meeting. The PPI in October cooled more than expected. Meanwhile there are some signs the labor market is cooling, with continuing jobless claims climbing to the highest since early February.

Strategists from Morgan Stanley to JPMorgan Chase & Co. have warned investors against piling back into risk on hopes the Fed is getting close to pivoting to easier policy.

"We think the worst is yet to come. We're looking for a moderate recession next year, which means a moderate decline in corporate profits are our target for the year," Gary Schlossberg, global strategist at Wells Fargo Investment Institute, said on Bloomberg Television. Wells Fargo expects earnings per share for S&P 500 stocks at about $205 a share.

Meanwhile, consensus is for China's inflation indexes to have headed down last month, though Bloomberg Economics expects a pickup as the economy reopens.

Comments from Li Keqiang should support sentiment, with the Chinese premier saying economic growth will "keep picking up."

JPMorgan strategist Marko Kolanovic said he "remains positive on China, due to favorable monetary conditions as well as an eventual full reopening and end of Covid."

Key events this week:

  • China PPI, CPI, Friday

  • US PPI, wholesale inventories, University of Michigan consumer sentiment, Friday

Some of the main moves in markets:

Stocks

  • S&P 500 futures were little changed as of 9:14 a.m. Tokyo time. The S&P 500 rose 0.8%

  • Nasdaq 100 futures were little changed. The Nasdaq 100 rose 1.2%

  • Japan's Topix index rose 0.9%

  • South Korea's Kospi index rose 0.4%

  • Australia's S&P/ASX 200 index rose 0.3%

  • Hong Kong's Hang Seng futures rose 0.5%

Currencies

  • The Bloomberg Dollar Spot Index was little changed

  • The euro was unchanged at $1.0556

  • The Japanese yen fell 0.1% to 136.82 per dollar

  • The offshore yuan was little changed at 6.9651 per dollar

Cryptocurrencies

  • Bitcoin rose 0.4% to $17,249.74

  • Ether rose 0.2% to $1,280.46

Bonds

  • The yield on 10-year Treasuries was unchanged at 3.48%

  • Australia's 10-year yield declined two basis points to 3.34%

Commodities

  • West Texas Intermediate crude rose 0.9% to $72.07 a barrel

  • Spot gold was little changed

This story was produced with the assistance of Bloomberg Automation.

--With assistance from Rita Nazareth.

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©2022 Bloomberg L.P.

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