SHANGHAI (Reuters) – Asian stocks spread between small losses and gains on Friday as investors waited for key Chinese trading and lending data, and as concerns over Chinese-US trading tensions counteracted optimism rooted in expectations of a Federal Reserve price decline this month.
FILE PHOTO: Passerby passes an electric display showing Asian markets indices outside a brokerage in Tokyo, Japan, July 1, 2019. REUTERS / Issei Kato
China will later release trading data in June, with analysts expecting exports has fallen as weakening global demand and a sharp rise in US tariffs took a heavier toll on the world's largest trading nation.
China will also release loan data on Friday, while GDP figures in the second quarter are scheduled for Monday. The world's second largest economy is expected to have slowed to its weakest pace for at least 27 years, hoping for more stimulus to avert a sharper slowdown.
"You have key data coming out, and I don't see why anyone will take a position before you have the data," said Michael Every, head of the financial market survey at Rabobank in Asia and the Pacific. in Hong Kong.
"We have a hell of a lot of signal coming through, but until we get the signal, this is noise," he said.
MSCI's widest index for Asia-Pacific shares outside Japan. MIAPJ0000PUS was in the last 0.1%. Chinese stocks rose, with the CSI300 .CSI300 rising 0.7%.
Australian shares fell by 0.1% and Japan's Nikkei stock index. The N225 showed higher after small early losses and increased 0.14%.
South Korea's KOSPI .KS11 was up 0.37%.
Examining the economic impact of global trade tensions, Singapore's economy increased at a slower pace in a decade in the second quarter, as the electronics industry's production declined in a sixth month in May, and then exports saw their biggest drop in more than three year.
During the global downturn, US President Jerome Powell told on Thursday that an additional charge is likely at Fed's next meeting.
The effort for such a cut was strong despite an increase in consumer inflation in the US in June, and helped lift the S&P 500 index by 0.23% on Thursday at a record high of 2.999.91 points. .
While the Nasdaq Composite .IXIC fell 0.08%, the Dow Jones Industrial Average .DJI also hit a record high of 27,088.08 points and increased 0.85% a day.
S & P 500 e-mini futures ESc1 was up 0.24% at 3.011.25.
But a tweet by US President Donald Trump on Thursday where he said China did not live up to promises that it was made to buy agricultural products from American farmers threatened to revive concerns over trade.
"Markets have had some peace in the US-China trade war history since the announcement of a cease-fire and the re-launch of trade talks at the G20 meeting. Unfortunately, headlines are beginning to emerge," ANZ analysts said in a morning report.
"While this wasn't a big market champion, it serves as a reminder that things can flare up again," they said.
WEAK TREASURY AUCTION
U.S. Treasury yields had jumped on Thursday after demand was weak for a $ 16 billion 30-year bond auction, and after the US Labor Department said the consumer price index excluding food and energy rose 0.3% in June, the largest increase since January 2018.
The poorly received auction had pushed the 30-year yield as high as 2,672% in Thursday, according to Refinitiv data.
But the dividend was a little changed on Friday. Benchmark 10-year government bonds US10YT = RR last gave 2.291%, up from a US approaching 2.12% on Thursday, while the 30-year return affected 2.646%, up from nearly 2.639%.
The two-year yield US2YT = RR, which rises with traders' expectation of higher Fed funds, was flat at 1.8524%.
"The CPI report will have no significant impact on the Fed Guidance or have a significant impact on the Big Fed debate around 25 or 50," said Stephen Innes, managing partner of Vanguard Markets Pte, referring to the expectations of the size of a July price reduction.
"FOMC is undoubtedly willing to let inflation run hotter after using the better part of a decade trying to ignite those flames," he said.
The dollar fell 0.05% against the yen to 108.43 JPY =, while the euro EUR = got 0.12% higher to buy $ 1.11265.
The dollar index .DXY, which tracks the greenback against a basket of six major rivals, was down 0.08% at 96.970.
The oil price picked up as US oil producers in the Gulf of Mexico, cut off production by more than half, in the face of a tropical storm and as tension in the Middle East again.
Global benchmark Brent crude LCOc1 got 0.60% to $ 66.92 per barrel. The US West Texas Intermediate (WTI) raw CLc1 was up 0.58% to $ 60.55 per barrel.
Gold prices, obscured by stronger than expected US consumer inflation, regained their luster thanks to renewed trading problems and price reduction expectations. Spot gold XAU = last traded up 0.28% at $ 1.407.60 per ounce.
Reporting by Andrew Galbraith; Editing by Shri Navaratnam and Richard Borsuk