Asian stocks reduce weekly losses, dollar stable near 20-year highs By Reuters

© Reuters. FILE PHOTO: A man holding an umbrella looks at an electronic listing board outside a brokerage house in Tokyo on April 7, 2015. REUTERS / Issei Kato

By Andrew Galbraith

SHANGHAI (Reuters) – Asian stocks bounced on Friday but were set for a second consecutive weekly loss and remained near lows in June 2020, while the dollar soared near 20-year highs as investors allayed concerns about strong inflation and tightening of central bank policy .

These concerns eventually overcame the hope on Wall Street that high inflation could reach its peak, and the pressure approached the confirmation of a bear market on Thursday, with almost 20% lower than the highest level in January. [.N]

In an interview later in the day, US Federal Reserve Chairman Jerome Powell said the fight to control inflation would “include some pain”[ads1];. And he reiterated the expectation of a half percentage point rate hike at each of the Fed’s next two political meetings, promising that “we are prepared to do more.”

After heavy losses a day earlier, Asian stocks rose on Friday. European equities were also set for a firmer opening, with pan-region up 1.08%, German up 0.93% and futures up 0.98%.

In afternoon trading, MSCI’s broadest index for Asia-Pacific equities outside Japan was up around 1.8% from Thursday’s 22-month closed low, reducing losses for the week to less than 3%.

Australian equities rose 1.93%, while the stock index jumped 2.64%.

In China, the blue-chip CSI300 index was up 0.61% and Hong Kong’s up 2.22%.

“We had some pretty big moves yesterday, and when you see the big moves, it’s only natural to get a little retracement, especially since it’s Friday on the way into the weekend. It’s not really a new story that has come through , “said Matt Simpson, seniormarket. analyst at City Index.

“I think there’s going to be a point where you run out of sellers. I’m not quite sure this is going to be a buying rally at the moment, possibly a short-term rally ahead of the weekend.”

Movements that rose in equities were reflected in falling US government bonds, with the benchmark index for US 10-year yields rising to 2.8895% from a close of 2.817% on Thursday.

The policy-sensitive 2-year return was 2.5924%, up from a close of 2.522%.

“Within the form of the US financial curve, we do not see any particularly fresh recession / decline signal, just the same consistent marked decline that is earmarked for the second half of 2023,” Alan Ruskin, macro strategist at the German bank (ETR :), said in a note.

The US dollar stayed close to 20-year highs against a basket of currencies, backed by demand for safe havens as Russia broke Finland’s plan to apply for NATO membership, with Sweden potentially following suit.

Moscow called Finland’s announcement hostile and threatened retaliation, including unspecified “military-technical” measures.

, which tracks it against a group of currencies from other major trading partners, fell around 0.1% to 104.65. But the dollar was stronger against the yen, which traded at 128.62 per dollar after reaching a two-week high of 127.5 here overnight.

The European common currency was 0.1% firmer to $ 1.0389 after trading lower earlier in the day.

Cryptocurrency bitcoin also turned higher, going through $ 30,000 after the collapse of TerraUSD, a so-called stablecoin, brought it to a 16-month low of around $ 25,400 on Thursday.

In commodity markets, oil prices were higher due to a pending EU ban on Russian oil, but were still set at their first weekly loss in three weeks, hit by concerns over inflation and China’s COVID shutdown slowing global growth.

ticked up 1.32% to $ 107.53 a barrel, and the global benchmark index was up 1.6% to $ 109.17 a barrel.

which had been driven to a three-month low of the soaring dollar, was up 0.16% to $ 1,824.61 per ounce. [GOL/]

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