(Bloomberg) — Asian equities advanced following gains in US stocks, after Treasuries halted a selloff that had pushed 10-year yields as high as 4.5%. Traders are closely watching any news around President-elect Donald Trump’s planned administration.
Most Read from Bloomberg
MSCI’s gauge of regional share climbed as much as 0.7% as benchmarks climbed in Japan, South Korea, China and Australia. The Nasdaq 100 outperformed Monday, with Tesla Inc. rising 5.6% on a news report Trump’s transition team have told advisers they plan to make a federal framework for fully self-driving vehicles one of the Transportation Department’s priorities.
Investors in Asia will be gauging whether Monday’s rebound for equities in China and Hong Kong following last week’s selloff can be sustained. Traders are reassessing the outlook for further stimulus and the country’s guidance on boosting corporate valuation.
“Asia equity markets are catching the tailwind from a better trading session in the US,” said Frederic Neumann, chief Asia economist at HSBC Holdings Plc. “With US rates edging lower, this is giving risk assets a little relief across the region.”
Treasuries were little changed in Asia after 10-year yields slipped three basis points in the US session. Bloomberg’s gauge of the dollar edged lower.
In Australia, the central bank sees its current policy settings as appropriate to try to pull down core inflation that is still “too high,” based on minutes of its November meeting. The Australian dollar and three-year sovereign bond yields held intraday declines after the minutes were published.
The S&P 500 rose 0.4% on Monday, while the Nasdaq 100 climbed 0.7%. The S&P 500 Index will advance through the end of next year amid continued US economic expansion and earnings growth, according to Goldman Sachs Group Inc.’s chief equity strategist David Kostin
Bitcoin slipped in Asian trade after rising above $91,000 Monday. The crypto currency is back in the vicinity of an all-time peak, supported by a salvo of developments highlighting the deepening embrace of the digital-asset industry in the US under crypto cheerleader Donald Trump.
Oil was little changed after surging on Monday amid simmering geopolitical tensions. West Texas Intermediate rose to settle above $69 a barrel after the US gave Ukraine the green light to use long-range missiles inside of Russia, amping up tensions between the warring nations.
Gold extended its gains as Goldman Sachs reiterated a forecast for prices to reach $3,000 an ounce next year.
In Washington, Trump’s transition team is considering pairing Kevin Warsh, a former Federal Reserve official, in the Treasury secretary role, with hedge fund manager Scott Bessent as director of the White House’s National Economic Council, according to people familiar with the matter.
Top Justice Department antitrust officials have decided to ask a judge to force Alphabet Inc.’s Google to sell off its Chrome browser in what would be a historic crackdown on one of the biggest tech companies in the world. The department will ask the judge to require measures related to artificial intelligence and its Android smartphone operating system, according to people familiar with the plans.
Key events this week:
-
Eurozone CPI, Tuesday
-
US housing starts, Tuesday
-
Fed’s Jeff Schmid speaks, Tuesday
-
China loan prime rates, Wednesday
-
Nvidia earnings, Wednesday
-
Fed’s Lisa Cook and Michelle Bowman speak, Wednesday
-
Eurozone consumer confidence, Thursday
-
US existing home sales, initial jobless claims, Philadelphia Fed factory index, Thursday
-
Eurozone HCOB Manufacturing & Services PMI, Friday
-
US University of Michigan consumer sentiment, S&P Global Manufacturing & Services PMI, Friday
Some of the main moves in markets:
Stocks
-
S&P 500 futures were little changed as of 10:46 a.m. Tokyo time
-
Nikkei 225 futures (OSE) rose 0.2%
-
Japan’s Topix rose 0.2%
-
Australia’s S&P/ASX 200 rose 1%
-
Hong Kong’s Hang Seng rose 0.6%
-
The Shanghai Composite rose 0.2%
-
Euro Stoxx 50 futures were little changed
Currencies
-
The Bloomberg Dollar Spot Index was little changed
-
The euro was little changed at $1.0591
-
The Japanese yen rose 0.3% to 154.17 per dollar
-
The offshore yuan fell 0.1% to 7.2347 per dollar
Cryptocurrencies
-
Bitcoin fell 0.4% to $91,011.39
-
Ether rose 0.1% to $3,153.77
Bonds
-
The yield on 10-year Treasuries was little changed at 4.41%
-
Japan’s 10-year yield declined one basis point to 1.060%
-
Australia’s 10-year yield declined three basis points to 4.57%
Commodities
-
West Texas Intermediate crude rose 0.1% to $69.26 a barrel
-
Spot gold rose 0.1% to $2,614.79 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Jason Scott.
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
Add Comment