Most Asian stocks fell on Tuesday, worrying as China slows loan growth after US equities hit a record high with optimism about a return to the world’s largest economy. The treasury and the dollar ticked.
An indicator of Asia-Pacific stocks fell for the first time in four days, driven by losses in Japan. US futures were slightly in the red, while European contracts rose. The S&P 500 reached an all-time high overnight, with most of its major groups advancing. US Internet and technology Megacap shares rose, including a rise in Facebook Inc. to a new high, as the Nasdaq 100 rose 2%.
In China, the central bank he asked the nation’s big creditors to reduce loan growth for the rest of this year, according to people familiar with the matter. Meanwhile, oil reduced part of Monday’s slide, which was triggered by delays in the reopening of Europe due to rising virus cases, as well as the approaching Iranian supply.
US data continued to show an economic recovery, as more Americans are vaccinated against coronavirus, restrictions are lifted and the tax exemption becomes valid. US service providers recorded the fastest growth in March as orders rose to new highs. But other parts of the world are still struggling to reduce the pandemic and lag behind in vaccinations.
“Spectacular US data seems to have some warnings that apply to the ‘wave of all boats’ hypothesis,” said Vishnu Varathan, head of economics and strategy at Mizuho Bank Ltd. in Singapore. “It could also mean an uneven recovery. Worse, it could also mean dealing with higher U.S. Treasury yields in a more fragile state,” especially for emerging markets, he said.
Treasury Secretary Janet Yellen He reiterated his view that the $ 1.9 trillion pandemic bailout bill signed last month will not put inflationary pressure on the stock and suggested that low interest rates will continue to prevail in the coming years. And she presented the case of a harmonized corporate tax rate in the world’s major economies in his first major speech on international economic policy.
Meanwhile, Credit Suisse Group AG began unloading shares related to the turmoil of Archegos Capital Management a week after some rivals abandoned their shares and lost losses.
Myth Kotecha, chief strategist of emerging markets in Asia and Europe at TD Securities, discusses the outlook for the dollar and emerging market assets.
Some key events to watch this week:
- The 2021 Spring Meetings of the International Monetary Fund and the World Bank Group are taking place in practice. US Treasury Secretary Janet Yellen is among the participants in a climate discussion on Tuesday. Federal Reserve Chairman Jerome Powell is attending a panel on the global economy on Thursday.
- The Fed is publishing minutes from its March meeting on Wednesday.
- Japan launches its balance of payments numbers on Thursday.
- Data on China’s consumer and producer prices are on Friday.
These are some of the main movements in the markets:
Inventories
- The S&P 500 futures fell 0.2% from 13:01 in Tokyo. The S&P 500 rose 1.4%. Nasdaq 100 futures fell 0.1%.
- The Japanese Topix index lost 1.4%.
- The Australian S & P / ASX 200 index rose 1%.
- The Kospi index in South Korea has changed little.
- China’s Shanghai Composite Index lost 0.3%.
- Euro Stoxx 50 futures rose 0.7%.
currencies
- The yen traded at 110.37 per dollar, down 0.2%.
- The offshore yuan was $ 6.5612.
- The Bloomberg Dollar Spot index rose 0.1%.
- The euro was $ 1,1802, down 0.1%.
BONDS
- The 10-year Treasury yield fell one basis point to 1.69%.
- Australia’s 10-year bond yield fell five basis points to 1.79%.
commodities
- West Texas Intermediate Oil rose 1% to $ 59.20 a barrel. It decreased by 4.6% in the previous session.
- Gold added 0.3% to $ 1,733.26 per ounce.
– With the assistance of Michael Tobin, Claire Ballentine and Rita Nazareth