(Bloomberg) – Most Asian stocks fell on Monday and US stock futures remained stable after China’s economic recovery weakened and investors continued to weigh global inflation risks.
Japan underperformed on concerns about a prolonged state of emergency to contain the coronavirus. Shares fell in Hong Kong and China, where a manufacturing measure indicated that economic recovery may have peaked. U.S. contracts rose after the S&P 500 made its fourth straight monthly advance. Government bond yields fell below 1.60% on Friday. In Asia, there is no cash trading in government bonds on US and UK public holidays.
The offshore yuan stabilized after comments leaning against its rise. Two state newspapers pointed to risks posed by rapid currency gains. China has also set its daily benchmark interest rate lower than expected.
Bitcoin traded below $ 35,000 on Friday after a slump as Bank of Japan Governor Haruhiko Kuroda warned of the token’s volatility and speculative trading.
Global stocks remain near a record high, lifted by the ongoing economic recovery from the pandemic and the introduction of incentives. The rally has so far overcome concerns that price pressures could force a reduction in central bank support earlier than expected.
Investors remain sensitive to risk, however, and this week’s US non-farm payroll report could weigh on markets if it changes perceptions of the strength of the upswing. A purchasing managers’ index report in China showed that input costs for manufacturers rose to their highest level in about a decade.
“Policymakers have pledged to accept higher levels of inflation and volatility, and if so, inflation will increase structurally,” JPMorgan Asia equity strategist Mixo Das told Bloomberg TV. “I don’t think that’s included in the prices yet.”
Here are the main events to watch this week:
US markets are closed for Memorial Day holidays. UK markets will be closed for the Spring Bank holiday. The Reserve Bank of Australia’s policy decision will be made on Tuesday. OPEC + meets to review oil production. Tuesday, President of the Philadelphia Fed Patrick Harker, President of the Chicago Fed, Charles Evans, President of the Atlanta Fed, Raphael Bostic, and President of the Dallas Fed, Robert Kaplan, will speak on Wednesday. Employment report for May on Friday
These are some of the key steps in the markets:
The S&P 500 futures rose 0.1% from 1:30 p.m. in Tokyo. The S&P 500 rose 0.1% on Friday. Nasdaq 100 contracts rose 0.1%. The Nasdaq 100 rose 0.2%. The Topix index fell 1.2%. The Australian S & P / ASX 200 index fell 0.1%. The Kospi index hardly changed. The Yang Seng index fell 0.5%. The Shanghai Composite Index fell 0.2%. The Euro Stoxx 50 futures fell 0.2%.
The yen was at 109.67 per dollar, up 0.2%. The offshore yuan was at 6.3565 per dollar. The Bloomberg Dollar Spot Index fell 0.1%. The euro was quoted at $ 1.2197
The 10-year government bond yield fell 1 basis point to 1.59% on Friday. The futures have hardly changed. Australia’s 10-year bond yield was 1.69%.
West Texas Intermediate Crude Oil rose 0.7% to $ 66.78 a barrel. Gold was at $ 1,906.83 an ounce, up 0.2%
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