Asian Stocks Fall, Led by China; Treasury Rally: Markets Close

(Bloomberg) – A gauge of Asian stocks fell on a subdued tone in markets on Friday after Thanksgiving in the US. Treasuries rallied as trading resumed after the holidays.

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Hong Kong-listed tech stocks led the decline in Chinese stocks as investors weighed recent gains against a resurgence in Covid-19 infections and lockdown-like restrictions hitting areas of Beijing.

US stock futures advanced on comments from Federal Reserve officials who argued for a slower pace of interest rate hikes. The dollar fluctuated after three days of consecutive losses.

Malaysia’s ringgit extended gains as the appointment of a new prime minister broke the political deadlock that has gripped the nation since the recent election.

The won stabilized ahead of this month’s high after the central bank governor said he needed to see strong signs that inflation was under control before discussing any prospects of moving away from policy tightening.

Yields on Japan’s 10-year benchmark bond rose to 0.245%, near the top of the central bank’s target range, after Tokyo’s inflation picked up more speed to hit its fastest pace in 40 years . The yen fell slightly.

The US markets were closed on Thursday and will have an abbreviated session on Friday.

Oil suffered a third weekly loss as the European Union weighs a higher-than-expected price high on Russian crude flows and concerns about the slowdown threaten the energy demand outlook.

Gold was little changed but poised for a modest weekly gain.

The outlook for Chinese markets is improving, despite the current flare-up in virus cases, according to Jun Bei Liu, portfolio manager at Tribeca Investment Partners.

“Things will get better in the next 12 months. We’ve already seen this playbook in other economies,” he told Bloomberg Television. “We’ll start to see outperformance very early in the next few quarters.”

Some of the major moves in the markets:

Actions

  • S&P 500 futures were up 0.2% as of 11:34 am in Tokyo.

  • Nasdaq 100 futures rose 0.4%.

  • The Topix index fell 0.1%

  • The S&P ASX index is up 0.3%

  • Hang Seng Index fell 1%

  • Shanghai Composite Index climbed 0.5%

  • Euro Stoxx 50 futures were little changed

Currencies

  • The Bloomberg Dollar Spot Index has changed slightly

  • The euro was little changed at $1.0411

  • The Japanese yen was little changed at 138.63 to the dollar

  • The offshore yuan changed slightly to 7.1648 to the dollar

Cryptocurrencies

  • Bitcoin fell 0.3% to $16,493.98

  • Ether fell 0.9% to $1,185.33

Bonds

  • The 10-year Treasury yield fell three basis points to 3.66%

  • Japan’s 10-year yield stood at 0.245%

  • Australian 10-year yield climbed four basis points to 3.58%

Goods

  • West Texas Intermediate crude climbed 0.5% to $78.31 a barrel

  • Spot gold rose 0.2% to $1,758.35 an ounce

This story was produced with assistance from Bloomberg Automation.

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