Asian markets traded lower following losses on Wall Street as new data weakened the case for imminent Federal Reserve interest rate cuts. Equity benchmarks in Australia and South Korea slipped, while those for Hong Kong fell around 2%. Mainland Chinese shares also edged down as the nation’s central bank left its key policy rate unchanged. Japanese stocks outperformed the region ahead of wage results due Friday. The S&P 500 and Nasdaq 100 each slipped for a second session Thursday with both benchmarks registering 0.3% declines. US futures fell during Asian trading. Treasuries steadied after selling off Thursday with 10-year yields rising 10 basis points. The moves were driven by producer price index data that rose more than expected in February, echoing the higher than anticipated consumer price data earlier in the week. Together, the figures show the Fed’s work in quelling inflation is not complete. Higher yields supported the greenback as the Bloomberg dollar index extending gains from the previous session. Elsewhere, the yen got a brief boost Thursday from a report that the Bank of Japan may end its negative rate policy next week. The Asian currency traded slightly weaker Friday. Japan’s largest union group will release the most closely scrutinized wage figures in decades. Some believe that strong numbers may be enough to nudge the BOJ toward raising interest rates for the first time since 2007. BlackRock Inc. and Man Group Plc. are among those seeing room for further gains in equities as economic vitality returns, while abrdn plc and Robeco are placing bullish yen wagers. In China, state funds’ purchasing of exchange traded funds has showed signs of cooling after a $50 billion buying spree to support its equity market. Meanwhile, the country’s banking regulator has asked Hong Kong financial institutions to detail their holdings of local government financing vehicles’ debt. The People’s Bank of China on Friday kept the rate on its one-year policy loans steady at 2.5% and drained cash from the banking system for the first time since November 2022. Meanwhile, the country’s home prices declined at a slower pace for both new and existing-units in January, the first signs of improvement in 10 months.
Data due Monday is expected to show year-on-year growth in China’s retail sales and industrial output slowed from December, based on surveys. The property sector still remains a major drag, raising doubts about the nation’s ability to gain momentum and hit an ambitious growth target of around 5%. The Fed is expected to keep rates unchanged at the March 19-20 meeting for the fifth straight gathering. Coming on the heels of reports warning of persistently high inflation, the focus will be on the Fed’s new “dot plot.” The median forecast of policymakers in December showed three quarter-point rate reductions for 2024. The re-acceleration of inflation against the backdrop of still buoyant risk assets that includes record highs for stocks and Bitcoin are “very symptomatic of a bubble mentality,” warned Michael Hartnett, chief investment strategist for Bank of America Corp.
In commodities, oil held near a four-month high after the IEA forecast a supply deficit through 2024, changing its earlier projection of a surplus, on the premise OPEC+ maintains production cuts. Bitcoin dropped over 4%, retreating from its all-time peak of almost $73,798 a day earlier. US After Hours ADBE -10.2%, PD -10.1%, SMAR -9%, ULTA -5% lower on earnings; MDGL +23.6% as it confirms FDA approval of Rezdiffra; GERN +90.8% after it resumes trading
Nikkei -0.40% Hang Seng -2.25% CSI -0.63% Shanghai -0.27% Shenzen -0.38%
Eur$ 1.0876 CNH 7.2040 CNY 7.1964 JPY 148.31 GBP 1.2739 CHF 0.8849 RUB 91.5279 TRY 32.2007 WTI$ 81.09 Gold 2,165 BTC 68,050 -3% ETH 3,708
S&P -0.10% Nasdaq -0.27% EuroStoxx +0.02% FTSE -0.12% Dax -0.08% SMI
Macro :
- Fund Managers Warn of $70 Billion-a-Day FX Risk From Move to T+1
- Stubborn Inflation Could Spark a Next-Level Rotation for Stocks
- ECB Has Achieved Soft Landing for Euro Zone, Stournaras Says
- BlackRock, Man Group Reveal Big Japan Bets Before BOJ Decision
Keep an eye on :
Keep an eye on :
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- ADDVA SS : ADDvise Group Registers SEK100 million Shares, ADDvise Group Offering of 10.7m Shares Prices at SEK9.40/Share
- AGS NA : BNP Paribas Is Said to Weigh Purchase of Fosun’s Ageas Stake
- AAPL US : Apple's DarwinAI Deal May Advance Its Edge AI Potential: React
- AZN LN :
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- BYW6 GY : BayWa to Propose Suspension of Dividend Payment for FY 2023
- BNP FP : BNP Paribas Is Said to Weigh Purchase of Fosun’s Ageas Stake
- CRI FP : Chargeurs CEO Companies Hold 65.56% of Chargeurs at End of Offer
- CLF US : Cliffs CEO Weighs Lowball Bid for US Steel With Union Backing
- CBK GY : Commerzbank Bucks Bank Shares’ Weakness: EMEA Financials Wrap
- DIA SM : DIA to Close 343 Brazil Stores, Study Options for Brazil Unit
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- ENX FP : Permira Considers Taking Private Exclusive Networks: Reuters
- FSR US : *FISKER SHARES JUMP 25% IN POSTMARKET TRADING
- GALP PL : Galp Says Found Significant Column With Light Oil in Namibia
- GBLB BB : GBL FY Net Income EU1.72B Vs. Loss EU585M Y/y
- GNC LN : Activist Fund Oasis Owns Just Under 5% Stake in Greencore: FT
- HFG GY : HelloFresh 4Q Adjusted Ebitda Misses Estimates
- IPG US : Interpublic Drops After Earlier Gains From Betaville Alert
- IHG LN : Hotel Chains Boost Market Power Taking Pipelines, Independents
- INRN SW : Interroll FY Total Sales Meets Estimates
- DRS US : Leonardo DRS Falls as Revenue View For 2025, 2026 Miss Estimates
- NICA SS : Nanologica Offering of SEK54.2 million Shares Prices
- POLY LN : Polymetal FY Adjusted Ebitda $1.46B Vs. $1.02B Y/y
- TSLA US : SpaceX Delays Starlink Launch to Work Through Technical Issue
- TIT IM : KKR Confirms Telecom Italia Network Deal Closing Due in Summer
- X US : US Steel Plunges for Second Day as Biden Comes Out Against Deal
- X US : Cliffs CEO Weighs Lowball Bid for US Steel With Union Backing
- X US : Nippon Steel Vows to Seal US Deal Despite Biden’s Resistance
- VAR NO : Var Energi Holder HitecVision Offers Up to 164m Shares: Terms
- VNA GY : Vonovia Sees 2024 Adj. Ebitda EU2.55B to EU2.65B, Est. EU2.61B
- WBD IM : Webuild FY Adjusted Ebitda Beats Estimates
- YIT FH : YIT to Issue Shares At EU2.25/SHR as Part of Financing Deal