Asian stocks were steady on Thursday and the U.S. stock market hit after the S&P 500 set another record for further evidence of the Federal Reserve’s commitment to supportive policies.
Japanese shares slipped amid concerns plagued by Tokyo stricter steps to curb rising viral infections, while Australia and Hong Kong fared better. The US and European stock markets rose due to a moderate increase in the S&P 500 index amid the shrinking volume in the US stock market. Technical giants, including Apple Inc., helped push up the Nasdaq 100. The dollar was on track for its fifth decline in six sessions while the treasury stabilized.
The British pound suffered two days of losses after coming under pressure due to concerns over AstraZeneca Plc’s vaccine, on which the UK is heavily dependent. Increasing concern that the shot is causing rare blood clots could also hamper vaccination from elsewhere in the world.
Fed officials were united on the need to see more progress with the recovery before scaling back their giant bond-buying program, according to minutes of last month’s meeting released on Wednesday. Policymakers have downplayed inflation risks, arguing that the recent boom in treasury yields reflects the stronger growth prospects. Traders reduced their most aggressive position for interest rates by the end of next year.
Turbulence should return to the market in the second quarter, said Banny Lam, head of research at CEB International Investment Corp., on Bloomberg TV. In addition to focusing on inflationary pressures, we need to focus more on the theme of renewed economic growth. ‘
Meanwhile, Treasury Secretary Janet Yellen reveals details of a plan to bring back about $ 2 trillion in corporate profits in the U.S. tax net. This could help fund government spending initiatives, which would reduce dependence on more loans that could increase rates.
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Some important events to watch this week:
- The spring meetings of 2021 of the IMF and the World Bank Group are virtually taking place. Federal Reserve Chairman Jerome Powell is taking part in a panel on the world economy on Thursday.
- Japan announced its balance of payments figures on Thursday.
- China’s consumer and producer price data are available on Friday.
These are some of the key movements in markets:
Stocks
- S&P 500 futures have risen 0.4% in Tokyo since 1:40 p.m. The S&P 500 increased by 0.2%.
- Japan’s Topix index fell 0.9%.
- South Korea’s Kospi index fell 0.1%.
- Australia’s S & P / ASX 200 index rose 0.9%.
- Hong Kong’s Hang Seng Index rose 0.8%.
- China’s Shanghai Composite Index rose 0.2%.
- Euro Stoxx 50 futures rose 0.3%.
Currencies
- The yen rose 0.2% to $ 109.65 per dollar.
- The foreign yuan was 6.5527 per dollar.
- The Bloomberg Dollar Spot Index fell 0.1%.
- The euro changed little at $ 1.1870.
Effects
- The yield on ten-year treasury fell 1.66%.
- Australia’s 10-year bond yield fell to 1.74% at one basis point.
Commodities
- West Texas Intermediate crude fell 0.4% to $ 59.53 a barrel.
- Gold was $ 1,739.61 per ounce.
– With the help of Rita Nazareth, Claire Ballentine and Joanna Ossinger