(Bloomberg) – Asian stocks rallied early Friday after tech companies led a rebound on Wall Street on economic optimism and allayed concerns about the possibility of a reduction in the US stimulus. The dollar continued to decline.
Shares rose in Japan, South Korea and Australia. Overnight, nearly every major industry group in the S&P 500 climbed, while gains from Apple Inc. and Tesla Inc. helped the Nasdaq 100 surpass its 50-day moving average. A drop in initial jobless claims in the United States has put the focus back on the economic recovery and moved away from fears that price pressures could jeopardize flexible financial conditions. Contracts on the high-tech caliber and the S&P 500 edged up.
Treasury yields continued to decline. Weaker-than-expected demand for an inflation-protected 10-year debt auction has suggested confidence in the Federal Reserve’s rhetoric that the recent acceleration in inflation is unlikely to hold. A pause in this year’s commodity boom continued.
Gold has been roughly the highest price for over four months. Its alleged virtual rival, Bitcoin, has stabilized after a volatile cryptocurrency collapse this week.
The global economic recovery, the risk of a significant upturn in inflation, and outbreaks of Covid-19 in parts of the world continue to shape market movements. For now, the growth optimism overshadows the Fed’s final minutes, which signaled the possibility of a debate at some point on reducing the exceptional stimulus that has bolstered a variety of assets.
“While inflation has been the star of the show, keep in mind that the Fed’s tenure is twofold, with jobs as the other side,” said Mike Loewengart, chief strategy officer at investment at E * Trade Financial. “The jobless claims read show once again that we are heading in the right direction, but that we are far from where we were before the pandemic.”
Oil has reduced its decline but remains at its lowest level for almost a month. Traders were weighing the likelihood of a new nuclear deal with Iran and the potential removal of sanctions on the country’s crude exports.
Elsewhere, President Joe Biden’s fiscal agenda was in the spotlight.
The Treasury Department detailed the measures proposed by the administration to raise an additional $ 700 billion in revenue over a decade through the Internal Revenue Service enforcement, including a requirement for cryptocurrency transfers from a value of $ 10,000 or more to report to tax authorities. Separately, the United States has also called for an overall minimum corporate tax of at least 15%.
Here are some key events from this week:
Data on existing home sales in the United States for April is due on May 21. A larger group of EU finance ministers and central bank heads will meet on May 22
Here are some of the main movements in the markets:
Futures on S&P 500 climbed 0.2% at 9:07 a.m. in Tokyo. The index rose 1.1%. Nasdaq 100 contracts rose 0.3%. Index rose 1.9% Japanese Topix index rose 0.2% Australian S & P / ASX 200 index rose 0.3% South Korea’s Kospi index rose by 0.7% Hang Seng futures rose 0.4% earlier
Bloomberg Dollar Spot Index held steady after falling 0.4% Euro was at $ 1.2228 British Pound was at $ 1.4186 Japanese Yen was trading at 108.83 per dollar The Yuan offshore was 6.4324 per dollar
The yield on 10-year Treasuries held at 1.63% Australia’s 10-year yield fell two basis points to 1.75%
West Texas Intermediate crude rose 0.5% to $ 62.22 per barrel, gold fell 0.2% to $ 1,874.19 per ounce
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