Stock futures in Asia fell after US equities dropped and government bonds rallied against the backdrop of weaker-than-expected economic data that supported forecasts for recession.
(Bloomberg) — Stock futures in Asia fell after US equities dropped and government bonds rallied against the backdrop of weaker-than-expected economic data that supported forecasts for recession.
Contracts for share benchmarks in Japan and Australia dropped. The S&P 500 declined 0.3% as selling pressure clustered in vulnerable corners of the market.
The tech-heavy Nasdaq 100 dropped 1%, eroding a stellar first quarter in which the tech-heavy index rose by fifth. An index of non-profitable tech companies fell 4%.
Hong Kong and mainland China stocks will resume trading after the market was closed Wednesday for a holiday. The Golden Dragon index of US-listed Chinese shares fell 2.7%, suggesting a downdraft in prices when the market opens.
Haven assets rallied. The 10-year Treasury yield fell three basis points and the interest-rate sensitive two-year yield dropped five basis points. An index of the dollar strengthened and the yen held its gain from Wednesday. Gold traded flat after touching a 13-month high in the prior session.
The flight to safety reflected signs of a slowing US economy ahead of crucial data to be released later Thursday and on Friday.
The Institute for Supply Management’s index fell to a three-month low of 51.2, below consensus estimates. Private payrolls data from ADP also underwhelmed relative to expectations. The data precede Friday’s US payrolls report, which is forecast to show employers added about a quarter of a million jobs last month and the unemployment rate held at a historically low level.
“ADP private employment tally was much weaker than expected, and with other high-frequency labor market metrics, suggests deteriorating labor-market growth,” said Stan Shipley at Evercore ISI. “Whisper fears suggest a tepid jobs report on Friday.”
Key events this week:
- US initial jobless claims, Thursday
- St. Louis Fed President James Bullard speaks, Thursday
- US unemployment, nonfarm payrolls, Friday
- Good Friday. US stock markets closed, bond markets close for part of the day
Some of the main moves in markets:
Stocks
- S&P 500 futures fell 01.% as of 7:06 a.m. Tokyo time. The S&P 500 fell 0.3%
- Nasdaq 100 futures fell 0.2%. The Nasdaq 100 fell 1%
- Nikkei 225 futures fell 0.6%
- Australia’s S&P/ASX 200 Index futures were little changed
Currencies
- The euro was little changed at $1.0907
- The Japanese yen was little changed at 131.22 per dollar
- The offshore yuan was little changed at 6.8856 per dollar
- The Australian dollar was little changed at $0.6723
Cryptocurrencies
- Bitcoin was little changed at $28,171.66
- Ether rose 0.3% to $1,911.77
Bonds
- The yield on 10-year Treasuries declined three basis points to 3.31%
Commodities
- West Texas Intermediate crude fell 0.3% to $80.39 a barrel
- Spot gold was little changed
This story was produced with the assistance of Bloomberg Automation.
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