(Bloomberg) – Asian stocks look set to have a mixed day, with Japanese markets opening lower while traders hope for another strong start in China.
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Japanese stocks fell and government bond yields rose after the Bank of Japan’s slightly more hawkish tone. Governor Kazuo Ueda said on Tuesday that the certainty that the Bank of Japan will achieve its forecast continues to gradually increase.
Stock futures are pointing to gains in Hong Kong and Chinese stocks, with positive spillover expected as the Nasdaq Golden China Dragon Index rose nearly 5% overnight. The S&P 500 and Nasdaq 100 closed at their highest levels for the second day in a row.
Stocks have been largely unaffected by the Federal Reserve’s warning that interest rate cuts are still a long way off. But as U.S. swap traders refrain from betting on a March rate cut, some on Wall Street are beginning to question whether the rally will last.
“At this point, the excitement has kind of died down and everyone’s calmed down a little bit after the pivot party,” Emily Rowland, co-chief investment strategist at John Hancock Investment Management, said by phone. “Multiple extensions are slowly starting to come into play here.”
The mood in China was further darkening as uncertainty over the economic outlook caused stock prices to fall. The selloff ended on Tuesday when Bloomberg News reported that the Chinese government was considering a market rescue plan.
The dollar index was little changed after two days of gains. U.S. Treasury yields steadied in Asian trading after rising mostly modestly on Tuesday, with the benchmark 10-year note at 4.14%. The policy-sensitive two-year interest rate fell 3 basis points to 4.34%.
The yen rose slightly against the dollar following Ueda’s comments, which market watchers say supports the view that the central bank will raise interest rates at some point in the first half of this year.
new high
U.S. stocks rose on Tuesday ahead of an onslaught of corporate reports promising insight into the state of the global economy.
In late trading, Netflix jumped more than 7% after announcing better-than-expected subscriber growth. Texas Instruments fell about 4% after disappointing sales forecasts, and its semiconductor manufacturing rivals also fell.
Read more: Goldman says momentum traders should sell stocks in ‘all scenarios’
Bitcoin rebounded after falling for two days. Retail investors have become bearish on the world’s largest cryptocurrency, according to a report from Deutsche Bank.
Meanwhile, West Texas Intermediate crude fell below $75 per barrel after the US issued a warning for ships passing through the Red Sea but did not recommend suspending shipping traffic. , crude oil prices have hardly changed.
This week’s main events:
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The nation’s first presidential primary will be held in New Hampshire on Tuesday.
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Canadian interest rate decision Wednesday
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Eurozone S&P Global Services and Manufacturing PMI, Wednesday
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US S&P Global Services and Manufacturing PMI, Wednesday
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Eurozone ECB interest rate decision Thursday
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Germany IFO Business Environment Thursday
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US GDP, new unemployment claims, durable goods, wholesale inventories, new home sales, Thursday
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Japan Tokyo CPI, Friday
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US Personal Income and Expenditures, Friday
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Bank of Japan issues minutes of policy meeting on Friday
The main movements in the market are:
stock
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As of 9:12 a.m. Tokyo time, S&P 500 futures were up 0.2%.
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Hang Seng futures rose 2.1%
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Japan’s TOPIX fell 0.2%
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Australia’s S&P/ASX 200 little changed
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Euro Stoxx50 futures fall 0.3%
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Nasdaq 100 futures rose 0.2%
currency
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Bloomberg Dollar Spot Index little changed
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The euro was almost unchanged at $1.0859.
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The Japanese yen rose 0.1% to 148.19 yen to the dollar.
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The offshore yuan was almost unchanged at 7.1658 yuan to the dollar.
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The Australian dollar was almost unchanged at US$0.6583.
cryptocurrency
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Bitcoin rose 1.5% to $39,798.22
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Ether rose 1.5% to $2,235.97.
bond
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The 10-year government bond yield was almost unchanged at 4.13%.
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Japan’s 10-year bond yield rose 6.5 basis points to 0.700%.
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The Australian 10-year bond yield rose 7 basis points to 4.26%.
merchandise
This article was produced in partnership with Bloomberg Automation.
–With assistance from Youkyung Lee.
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