(Bloomberg) – Most Asian stocks fell on Monday and US equity futures were flat as investors continue to weigh inflation risks and the strength of the economic recovery.
Shares slipped in Japan, Hong Kong and China, where a manufacturing industry gauge suggested the economy’s recovery momentum may have peaked. US contracts fluctuated after the S&P 500 recorded its fourth consecutive monthly advance. Yields on Treasuries fell below 1.60% on Friday. There is no spot trading on Treasury bills in Asia during holidays in the US and UK
The offshore yuan fell on strong comments against its rally. Two state newspapers reported risks fueled by rapid currency gains. China has also set its daily benchmark rate lower than expected.
Bitcoin traded around $ 35,000 after a crisis on Friday, as Bank of Japan Governor Haruhiko Kuroda warned of token volatility and speculative trading.
Global stocks remain close to a record high, supported by the economic recovery underway after the pandemic and injections of stimulus measures. The rally has so far overcome fears that price pressures could lead to an earlier-than-expected reduction in central bank support.
But investors remain risk-sensitive, and this week’s US non-farm payrolls report could shake markets if it changes perceptions of the strength of the rebound. A report on China’s Purchasing Managers Index showed that input costs for manufacturers hit their highest level in about a decade.
“Policymakers are committed to accepting a higher level of inflation, greater inflation volatility and in this case you will see inflation structurally move upward,” said Mixo Das, equity strategist. by JPMorgan Asia, on Bloomberg TV. “I don’t think it’s in the prices yet.”
Here are the main events to watch for this week:
US markets will be closed for the Memorial Day holidays. Philadelphia Fed Chairman Patrick Harker, Chicago Fed Chairman Charles Evans, Atlanta Fed Chairman Raphael Bostic and Dallas Fed Chairman Robert Kaplan speak on Wednesday. job report for Friday in May
Here are some of the main movements in the markets:
Futures on S&P 500 rose 0.1% at 10:49 a.m. in Tokyo. The S&P 500 rose 0.1% on Friday Nasdaq 100 contracts climbed 0.1%. Nasdaq 100 index rose 0.2% Topix index fell 0.6% Australian S & P / ASX 200 index was stable Kospi index was little changed Tang Seng index fell 0.6% 0.4% Shanghai Composite Index fell 0.3%
The Japanese yen was at 109.70 per dollar, up 0.1% Offshore yuan was 6.3670 per dollar, down 0.1% Bloomberg Dollar Spot Index was little changed
The yield on 10-year Treasuries fell one basis point to 1.59% on Friday. Australian 10-year bond yields held steady at 1.69%
West Texas Intermediate crude rose 0.4% to $ 66.61 per barrel, gold was at $ 1,906.72 per ounce
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