(Bloomberg) — Asian stocks slipped Tuesday and U.S. equity futures fell as investors weighed the impact of the recent climb in bond yields as well as a Chinese official’s warning about asset bubbles. The dollar climbed.
Shares in China and Hong Kong underperformed, though South Korea remained higher after reopening from a holiday. S&P 500 and Nasdaq 100 futures turned lower. China is “very worried” about bubbles in overseas financial markets, China Banking and Insurance Regulatory Commission Chairman Guo Shuqing said at a briefing. Treasury yields edged down.
Oil retreated to trade just below $60 a barrel ahead of a key OPEC+ meeting this week. Australia’s dollar pared losses after the central bank kept its key interest rate and three-year bond yield target unchanged. After the close of regular trading, Zoom Video Communications Inc. rose as its revenue forecast topped Wall Street’s estimates.
The comments from Guo come amid an ongoing debate over whether risk assets are over-extended following huge injections of stimulus to counter the impact of the pandemic. Traders are also braced for how Federal Reserve officials slated to speak this week might respond to recent tumult in bond markets.
“There’s lot of uncertainty, a lot of risks being built in, that’s why you’re seeing a bit of skittishness,” said Lorraine Tan, Morningstar director of Asia equity research. “The positive tailwind for the market is still going to be the global economic recovery.”
On the virus front, global cases rose for the first time in almost two months in the past week, the World Health Organization said, citing countries easing restrictions, people letting their guard down and variants spreading.
Elsewhere, Bitcoin rallied after a volatile weekend session as Citigroup Inc. laid out a case for the digital asset to play a bigger role in the global financial system.
There are some key events to watch this week:
U.S. Federal Reserve Beige Book is due Wednesday.OPEC+ meeting on output Thursday.U.S. factory orders, initial jobless claims and durable goods orders are due Thursday.The February U.S. employment report on Friday will provide an update on the speed and direction of the nation’s labor market recovery.
These are some of the main moves in markets:
Stocks
S&P 500 futures fell 0.3% as of 12:49 p.m. in Tokyo. The S&P 500 Index surged 2.4%.Japan’s Topix index was down 0.8%.Australia’s S&P/ASX 200 index was little changed.South Korea’s Kospi index rose 1.6%.Hong Kong’s Hang Seng Index fell 0.8%.Shanghai Composite Index fell 1%.Euro Stoxx 50 futures lost 0.3%.
Currencies
The yen traded at 106.77 per dollar.The offshore yuan was at 6.4777 per dollar, down 0.1%.The Bloomberg Dollar Spot Index rose 0.2%.The euro was at $1.2024, down 0.2%.
Bonds
The yield on 10-year Treasuries fell about two basis point to 1.40%.Australia’s 10-year bond yield rose one basis points to 1.68%.
Commodities
West Texas Intermediate crude declined 1.3% to $59.84 a barrel.Gold dipped 0.7% to $1,713 an ounce.
For more articles like this, please visit us at bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2021 Bloomberg L.P.
[ad_2]
Source