Asia Stocks Fall, Led by China; Treasuries Rally: Markets Wrap

(Bloomberg) — A gauge of Asian equities fell amid a subdued tone in markets on Friday after Thanksgiving in the US. Treasuries rose as trading resumed after the holiday.

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Hong Kong-listed technology stocks led declines in Chinese shares as investors weighed recent gains against an upswing in Covid-19 infections and lockdown-like restrictions affecting swathes of Beijing.

US stock futures advanced following commentary from Federal Reserve officials that supports the case a slower pace of interest-rate increases. The dollar headed for a fourth day of losses.

Malaysia’s ringgit extended gains as the appointment of a new prime minister cleared the political gridlock that has gripped the nation since recent elections.

The won inched higher after the central bank governor said he needs to see strong signs that inflation is under control before discussing any prospect of a pivot away from policy tightening.

Yields on Japan’s benchmark 10-year bond rose one basis point to 0.25%, the top of the central bank’s target band, after Tokyo’s inflation picked up more speed to hit its fastest pace in 40 years.

US markets were closed Thursday and will have a shortened session on Friday.

Oil headed for a third weekly loss as the European Union weighs a higher-than-expected price cap on flows of Russian crude and slowdown concerns threaten the outlook for energy demand.

Gold was poised for a modest weekly gain.

The outlook for Chinese markets is improving, despite the current flareup in virus cases, according to Jun Bei Liu, a portfolio manager at Tribeca Investment Partners.

“In the next 12 months things will get better. We have seen this playbook before across other economies,” she said on Bloomberg Television. “We’ll begin to see outperformance very soon in the next few quarters.”

Some of the main moves in markets:

Stocks

  • S&P 500 futures rose 0.3% as of 1:23 p.m. in Tokyo.

  • Nasdaq 100 futures rose 0.4%.

  • The Topix Index was little changed

  • The S&P ASX Index rose 0.2%

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  • The Hang Seng Index fell 0.9%

  • The Shanghai Composite Index rose 0.4%

  • Euro Stoxx 50 futures were little changed

Currencies

  • The Bloomberg Dollar Spot Index fell 0.1%

  • The euro rose 0.2% to $1.0428

  • The Japanese yen was little changed at 138.43 per dollar

  • The offshore yuan rose 0.1% to 7.1613 per dollar

Cryptocurrencies

  • Bitcoin fell 0.4% to $16,483.33

  • Ether fell 0.8% to $1,185.86

Bonds

  • The yield on 10-year Treasuries declined four basis points to 3.65%

  • Japan’s 10-year yield rose one basis point to 0.25%

  • Australia’s 10-year yield advanced four basis points to 3.58%

Commodities

  • West Texas Intermediate crude rose 0.6% to $78.44 a barrel

  • Spot gold rose 0.3% to $1,760.01 an ounce

This story was produced with the assistance of Bloomberg Automation.

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