* Asian stock markets: tmsnrt.rs/2zpUAr4
* Nikkei falls 1%, trade thinned by US holidays
* We look at China’s GDP data for the economic outlook
* US dollar, treasuries gain as appetite is risky
SYDNEY, January 18 (Reuters) – Asian stock markets retreated on Monday as disappointing news of US consumer spending tempered risk sentiment ahead of a closely monitored reading on the health of the Chinese economy.
Doubts have also been raised about how much of President-elect Joe Biden’s stimulus package will reach the Republican opposition Congress and the risk of more mafia violence at its inauguration on Wednesday.
The largest MSCI index of Asia-Pacific equities outside of Japan lost 0.3%, reaching a record high in recent weeks. The Japanese Nikkei fell 1% and moved away from the 30-year high.
E-Mini futures for the S&P 500 fell 0.3%, although Wall Street will be closed on Monday for a holiday.
China’s GDP is projected to rise to 6.1% annually in the last quarter from 4.9% in the third quarter. Monthly figures on retail sales and industrial production are expected to show rapid activity at the end of the year.
“China’s GDP growth in the fourth quarter is expected to accelerate to a consensus of more than 6.5% per year due to strong industrial production, a recovery in services and strong exports,” said Joseph Capurso, head of the international economy. the CBA.
“The data will confirm that the Chinese economy ended the year on a strong footing.”
This would be a stark contrast to the US and Europe, where the spread of coronavirus has affected consumer spending, underlined by US retail sales reported on Friday.
“The data calls into question the sustainability of the recent larger bond yield move and rising inflation offsets,” ANZ analysts said in a statement.
“There is a lot of good news about vaccines and stock price incentives, but optimism is called into question by the painful reality of the next few months,” they warned. “The risk across Europe is that the blockades will be extended, and cases in the US could suddenly increase as the COVID version in the UK expands.”
It will focus on targeting earnings from corporate results this week, which includes BofA, Morgan Stanley, Goldman Sachs and Netflix.
Weak US data helped the Treasury reduce some of its recent steep losses, and 10-year yields traded at 1.087%, down from last week’s peak of 1.187%.
The more sober mood, in turn, stimulated the US dollar safe haven, catching a deeply short rising market. Speculators increased their net position in short dollars to the highest since May 2011 in the week ending January 12.
The dollar index rose to 90,837, and surpassed its last 2-1 / 2 season at 89,206.
The euro retreated to $ 1.2068 from its January high of $ 1.2349, while the dollar remained steady on the yen at 103.93 and well above its most recent low at 102.57.
Biden’s election for Treasury Secretary Janet Yellen is expected to rule out a weaker dollar when he testifies on Capital Hill on Tuesday, the Wall Street Journal reported.
Gold prices were undermined by the return of the dollar, leaving the metal to fall to $ 1,812 an ounce, compared to its January peak of $ 1,959.
Oil prices have faced profit concerns, the spread of increasingly tight bottlenecks globally would affect demand.
In the long run, crude oil fell 12 cents to $ 54.98 a barrel, while US crude oil fell 11 cents to $ 52.25.
Edited by Shri Navaratnam