Shares in Asia rose Friday after an upbeat day on Wall Street following jobs data that supported the case for US interest-rate cuts. The MSCI Asia Pacific Index rose 0.7% as Hong Kong’s benchmark index reached its highest level since September and equities in Japan, South Korea and Australia also climbed. US contracts posted modest gains after the S&P 500 index closed less than 1% away from its all-time high on Thursday. The Hang Seng advanced following news that regulators were considering a proposal to exempt individual investors from paying taxes on dividends earned from Hong Kong stocks bought via Stock Connect. However, onshore Chinese stocks fell as investors assessed a report saying US President Joe Biden’s administration is poised to unveil a sweeping decision on China tariffs as soon as next week. Treasuries were steady, with the US 10-year yield staying around 4.45%, after support from a successful $25 billion sale of 30-year US bonds. Initial applications for US unemployment benefits rose last week to the highest level since August, topping estimates, with cooling in the jobs market supporting the case for interest rate cuts. Fed Bank of San Francisco President Mary Daly said rates are currently restraining the economy, but it may take “more time” to return inflation to their goal. Emerging market currencies were broadly higher against the greenback, extending gains from Thursday when the dollar weakened. The greenback was steady Friday while the yen was little changed at around 155 per dollar. Data set for release in Asia Friday includes industrial output for India and the first-quarter current account balance for China. New loans and money supply data for China may also be released as early as today. Elsewhere, JPMorgan Chase & Co. said it was on track to include India in its emerging market debt index from June, a move that is expected to drive inflows from global investors. Meanwhile, Oversea-Chinese Banking Corp. offered S$1.4 billion ($1 billion) to buy the remaining stake in Great Eastern Holdings Ltd. that it does not currently own, in an effort to solidify its wealth management leadership position. Oil extended gains into a third day as key technical levels provided a floor for losses while investors digested a mixed US inventories report. Gold traded slightly higher after jumping more than 1% on Thursday. To Doug Ramsey at Leuthold, another 10% gain in the S&P 500 isn’t out of the question, at least statistically. He analyzed 80 years of data on bull-market rallies, focusing on those that happened when unemployment was this low and the economic cycle this mature. If the current rally meets the prior records for length and height, the S&P 500 would end the year at 5,705. If the economy is slowing, unemployment rising, inflation receding, and the Fed is expected to cut rates, there will be plenty of buyers for US Treasury notes and bonds, according to Joe Kalish at Ned Davis Research. US After Hours Busy earnings session; NTRA +16.2%, SG +14.6%, CDNA +13.4%, GH +12.3%, SOUN +12.2% higher on earnings; PGNY -29.8%, AAOI -16.6%, FROG -15.6%, NVTS -12.6%, FIGS -10.7%, SVV -10.3% lower on earnings; MGNX -65.2% on Phase 2 data.
Nikkei +0.27% Hang Seng +2.12% CSI +0.02% Shanghai +0.03% Shenzen -0.64%
Eur$ 1.0776 CNH 7.2281 CNY 7.2249 JPY 155.62 GBP 1.2518 CHF 0.9064 RUB 92.5613 TRY 32.2658 WTI$ 79.85 +0.8% Gold 2,356 BTC ETH
S&P +0.11% Nasdaq +0.10% EuroStoxx +0.20% FTSE +0.45% Dax +0.26% SMI +0.66%
Macro :
- Bank of England’s Bailey Joins Debate on ‘Name and Shame’ Powers
- Hedge Funds Capula, Schonfeld Hire Yen Rates Traders From Banks
Keep an eye on :
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- SAB SM : Sabadell Accuses BBVA of Breaking Rules With $12 Billion Offer
- BLNK US : Blink Charging Aims to Expand Network as Tesla Pulls Back
- BA US : Boeing 737 Makes Emergency Landing in Japan, No Injuries: Kyodo
- BP/ LN : BP Keen to Buy Tesla Supercharging Sites for US Expansion
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- COR PL : Corticeira Amorim 1Q Net Income EU16.1M Vs. EU23.8M Y/y
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- EDP PL : EDP 1Q Net Income Beats Estimates
- ENEL IM : Enel 1Q Adjusted Net Income Beats Estimates, 1Q Beats Estimates on Hydro-Power Production Increase
- XOM US : Calpers Mulls Vote Against Exxon CEO’s Re-Election to Board: FT
- SFER IM : Ferragamo 1Q Net Revenue at Constant FX Rates Misses Estimates
- FCT IM : Fincantieri to Buy Leonardo’s Wass Unit for Up to €415 Million
- ILTY IM : Illimity Bank 1Q Net Income EU10.8M Vs. EU7.8M Y/y
- LDO IM : Leonardo to Sell Sub Unit to Fincantieri for Up To €415m
- IVG IM : Iveco Boosts FY Consolidated Adj. Ebit Forecast, Beats Estimates
- MB IM : Mediobanca 3Q Net Income Beats Estimates
- MEL SM : Melia Hotels 1Q Net Income EU7.5M Vs. Loss EU0.5M Y/y
- NESN SW : Nestlé will invest R$1 billion by 2026 to expand coffee production in Brazil and projects a jump in
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- PEN NO : Panoro Energy Finds Oil at Hibiscus South Extension off Gabon
- PIRC IM :Pirelli 1Q Revenue Beats Estimates, Pirelli Beats, Second-Quarter Commentary Positive
- RECSI NO :REC Silicon 1Q Revenue $42.1M Vs. $40.5M Q/Q
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- SHL GY : Siemens Healthineers to Invest More Than €290M in Oxford Plant
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