(Bloomberg) – Asian stocks are expected to rise on Monday after bargain hunters boosted a rally in the United States, with traders also weighing growth risks and waiting for the Jackson Hole symposium for clues to the political outlook from the Federal Reserve.
Futures contracts rose in Japan, Australia and Hong Kong, while US contracts fluctuated. All the major groups in the S&P 500 gained at the end of last week, and tech giants lifted the Nasdaq 100. Beijing’s regulatory crackdown saw US-listed Chinese stocks suffer their longest streak of losses weekly in a decade despite an increase on Friday.
The dollar was broadly stable against major currencies at the start of the session after its best week since June on safe-haven demand as the delta virus variant spreads. Thursday’s Jackson Hole Symposium could offer some insight into how the Fed plans to cut bond purchases. Treasury bills have changed little over the past week.
Commodities remain the focus of concern, after a drop in commodities such as crude oil and copper and bouts of weakness in commodity currencies.
The spread of the delta variant and the prospect of reduced central bank support have cast doubt on the global economic recovery and caused a pause in the rally in global equities. Dallas Federal Reserve Chairman Robert Kaplan has said he is ready to adjust his view that the Fed should start scaling back its asset purchase program as soon as possible if delta tension persists and undermines economic progress.
“Markets respond to interest rate hikes much more than cut and we expect a pause between the cut and the first hike, suggesting a take-off in 2023 and not before,” wrote Esty Dwek, head of the global market strategy at Natixis Investment Managers, in a note. .
On the virus front, Australia and New Zealand are reviewing their strategies to eliminate coronavirus infections, Australian Prime Minister Scott Morrison has said it is highly unlikely his country will ever return to zero cases.
Here are some events to watch this week:
US Markit Manufacturing PMI and Existing Home Sales Monday Bank of Korea Policy Decision; Briefing by Governor Lee Ju-yeol Thursday Fed officials attend the Jackson Hole Economic Policy Symposium from Thursday to Saturday. GDP, first jobless claims Thursday July US income and personal expenditure data Friday. Investors will take a close look at the personal consumption expenditure price index, a measure of inflation closely watched by the Fed.
For more market analysis, read our MLIV blog.
Some of the main movements in the markets:
S&P 500 futures were flat at 7:06 am in Tokyo. The S&P 500 rose 0.8%. FridayNasdaq 100 futures rose 0.2%. The Nasdaq 100 climbed 1.1%. Futures contracts on the Nikkei 225 rose 0.9%.
The Japanese yen was little changed at 109.79 per dollar The offshore yuan was at 6.5032 per dollar The Bloomberg Dollar Spot Index was little changed on Friday The euro was at $ 1.1699
The yield on 10-year treasury bills rose one basis point to 1.26% on Friday
West Texas Intermediate was at $ 62.15 a barrel Gold was at $ 1,781.53
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