Stocks in Asia rose after US shares climbed and Treasuries sold off as investors weighed fresh data that indicated further Federal Reserve tightening ahead.
(Bloomberg) — Stocks in Asia rose after US shares climbed and Treasuries sold off as investors weighed fresh data that indicated further Federal Reserve tightening ahead.
Australian, South Korean and Japanese shares and Hong Kong equity futures gained ground. Contracts for US benchmarks also rose after the S&P 500 climbed 0.3% to close at its session high Wednesday while the Nasdaq 100 ended the day 0.8% higher.
The Australian dollar fell following data showing the jobless rate climbed unexpectedly in January. Australian and New Zealand bond yields rose and benchmark 10-year Treasury yields were flat after increasing six basis points on Wednesday. The dollar traded flat after advancing 0.6% Wednesday and the yen strengthened.
Trading in US stocks echoed the prior session as signs of a robust economy that would compel a hawkish Fed response were shrugged off by equity investors. US retail sales in January jumped by the most in almost two years and homebuilder sentiment rose in February by the most since mid-2020.
The new data follows a hotter-than-expected inflation print on Tuesday and comes ahead of US employment data to be released Thursday that is expected to show an uptick in jobless claims.
The market “is telling us maybe we can keep going as long as inflation is coming down overall and growth is solid,” Quincy Krosby, chief global strategist for LPL Financial, said in an interview with Bloomberg Television.
The rally in risk assets helped propel some of the most speculative corners of the market. A Goldman Sachs Group Inc. benchmark of non-profitable tech companies rose 4.4% and is up almost 30% this year. Bitcoin rose further after jumping 8.7% Wednesday, the most in three months, to reach the highest level since August.
“Everybody is trying to figure out whether this is going to be a once-in-a-lifetime soft landing or if it’s just taking longer before we get a panic recession,” Jerry Braakman, chief investment officer of First American Trust, said in an interview. “That’s why you’re seeing a lot of divergence between bulls and bears.”
Oil futures dropped below $79 a barrel after EIA reported that crude inventories rose over 16 million barrels last week.
Cisco Systems Inc. shares rose as much as 10% in late trading after it gave an upbeat revenue prediction that suggested that spending on tech infrastructure is holding up better than expected. Devon Energy Corp. fell more than 10% after fourth-quarter earnings missed estimates.
Key events:
- US jobless claims, Australia unemployment, Cleveland Fed President Loretta Mester speaks at Global Interdependence Center event Thursday
- France CPI, Russia GDP Friday
Some of the main moves in markets as of 9:36 a.m. Tokyo time:
Stocks
- S&P 500 futures rose 0.1%. The S&P 500 rose 0.3%
- Nasdaq 100 futures rose 0.2%. The Nasdaq 100 rose 0.8%
- Hang Seng futures rose 0.2%
- Japan’s Topix rose 0.4%
- Australia’s S&P/ASX 200 rose 0.7%
- Euro Stoxx 50 futures rose 0.4%
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at $1.0690
- The Japanese yen rose 0.2% to 133.86 per dollar
- The offshore yuan was little changed at 6.8632 per dollar
Cryptocurrencies
- Bitcoin rose 2.1% to $24,685.88
- Ether rose 1.5% to $1,690.48
Bonds
- The yield on 10-year Treasuries was little changed at 3.81%
- Australia’s 10-year yield advanced four basis points to 3.78%
Commodities
- West Texas Intermediate crude fell 0.1% to $78.49 a barrel
- Spot gold was little changed
This story was produced with the assistance of Bloomberg Automation.
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