© Reuters. FILE PHOTO: Pedestrians and a traffic light stoplight are reflected on a quote board in Tokyo
By Swati Pandey
SYDNEY (Reuters) – Asian equities declined below Chinese equities on Thursday as recent optimistic economic data sparked fears of tightening monetary policy, while the struggling lows nearly nearly a month.
The futures contract for Eurostoxx 50 started in negative areas, while that for London’s was slightly higher. E-Mini futures contract 0.2% higher.
The mood was less positive in Asia, where most indices were in the red.
MSCI’s broadest index of Asia-Pacific stocks outside Japan fell 0.1% after two consecutive days of gains. It was last at 690.12, a full distance from a record high of 745.89 touched in February.
the early profit fell 0.07% higher, while New Zealand’s benchmark index fell 0.9%.
Chinese stocks stumbled with the blue-chip CSI300 index of 0.9% and Hong Kong’s decline of 0.8%.
JPMorgan (NYSE 🙂 Asset Management said in a statement that it was decorating its overall exposure to Emerging Markets (EM) “mostly driven by a less pronounced outlook for EM Asia.”
“China has now recovered enough for policymakers to afford to be more conservative and more concerned about mitigating debt and property market risks,” its global multi-asset strategist Patrik Schowitz wrote in a note.
“It will be a headwind for China’s shares, despite the solid economy.”
Global equities have risen in recent weeks, led by the successful rollout of COVID-19 vaccines around the world, US stimulus packages and higher US inflation expectations.
However, a recent, sharp rise in U.S. treasury yields has begun to test a valuation on some parts of the world’s stock markets with better value than growth, ‘Jefferies (NYSE 🙂 analysts wrote in a note .
“Similarly, there are fewer stocks that offer decent returns and higher capital gains.”
JPMorgan Asset Management, Schowitz, said it was less keen on technology stocks, which in the short term would be less than earnings expectations and ‘very expensive’ in terms of value.
Wall Street ended mixed on Wednesday with the tech sector being the biggest underperformer after the largest bitcoin exchange Coinbase was sold on its listing day, dragging the Nasdaq lower. ()
The listing of Coinbase coincided with a record price for, which rose to just under $ 65,000, but the euphoria seems to be short-lived as the stock fell nearly 20% from the initial level to trading at $ 328.
In currencies, the US dollar was a fourth consecutive day of decline against its major peers, while the Federal Reserve reiterated that interest rates would remain low for some time to come. [FRX/]
Forex investors are watching the treasury returns for direction indicators with a potential market panic over the accelerated inflation that is considered the biggest risk for sentiment.
Key policymakers, including the Federal Reserve, have repeatedly said that there is still plenty of labor market to keep inflation in check for a few years, although there may be temporary increases that they are willing to overlook.
The assurance has so far helped stabilize the bond markets, although there is still reign of terror that the Fed could change later this year if inflation readings fluctuate higher than expected.
Against the Japanese yen, the dollar slipped to 108.90 for a fourth day. The euro was worth $ 1.1977, as well as £ 1.3776.
The Australian dollar soared near three-week highs to $ 0.7716 after posting its biggest percentage gain on one day since February 19 on Wednesday. Its counterpart in New Zealand was higher than $ 0.7147, a level not seen since March 23.
The US dollar was 1.7% higher than the Russian ruble, according to the Reuters report. The United States will already on Thursday announce sanctions against Russia for alleged interference in the election and malicious cyber activities, targeting several individuals and entities.
In commodities, oil held near a one-month high after climbing nearly 5% on Wednesday on signs of rising crude demand. [O/R]
was up 2 cents at $ 66.60 a barrel. slipped 5 cents to $ 63.1.
Gold was up 0.4% at $ 1,741.8 an ounce.