(Bloomberg) — Asian stocks and U.S equity futures were steady Tuesday as reports signaled an ongoing expansion in regional manufacturing despite Covid-19 flareups. The dollar dipped and Treasury yields rose.
Japanese shares fluctuated amid lower-than-average volumes, while export growth bolstered South Korean stocks. China dipped at the open while Hong Kong equities drifted. S&P 500 and Nasdaq 100 futures were little changed following a U.S. holiday.
The dollar weakened against its Group of 10 peers and Asian currencies. The offshore yuan remained resilient after China forced banks to keep more foreign currencies in reserve for the first time in over a decade, its most substantial move yet to rein in a surging currency. The pound rallied to a three-year high on vaccine-led reopening optimism for the U.K.
Oil climbed as OPEC and its allies forecast that inventories will fall sharply this year if the group sticks to its current plan. Gold had its biggest monthly advance since July and most industrial metals gained.
Global stocks are starting the new month near record highs, underpinned by the economic recovery from the pandemic and ample liquidity from sustained stimulus. Still, concerns linger that rising price pressures could prompt central banks to withdraw support earlier than anticipated. Traders are awaiting key American jobs data later in the week to help assess the economic outlook.
There is a real risk “that inflation is a little bit stickier than the Federal Reserve is telling us and we do bring forward those expectations around tapering and interest rate hikes,” Kerry Craig, JPMorgan Asset Management global market strategist, said on Bloomberg TV. “The inflation outlook is a risk because it is so unknown at the moment and it will take a number of months to really get a true idea of whether we will see that inflation be persistently higher or not.”
In Australia, the central bank is expected to keep loose policy settings unchanged. But it may be getting closer to a decision on whether the economy is strong enough to join Canada and New Zealand in signaling a move away from emergency stimulus.
Here are key events to watch this week:
Reserve Bank of Australia policy decision TuesdayOPEC+ meets to review oil production levels TuesdayPhiladelphia Fed President Patrick Harker, Chicago Fed President Charles Evans, Atlanta Fed President Raphael Bostic and Dallas Fed President Robert Kaplan speak WednesdayU.S. employment report for May on Friday
These are some of the main moves in markets:
Stocks
S&P 500 futures were steady as of 11:30 a.m. in Tokyo. The gauge was little changed Friday.Nasdaq 100 futures were flat. The index rose 0.2% Friday.Japan’s Topix index fell 0.3%Australia’s S&P/ASX 200 Index dropped 0.5%South Korea’s Kospi index rose 0.6%Hang Seng Index was little changedShanghai Composite Index lost 0.7%Euro Stoxx 50 futures edged up 0.1%
Currencies
The yen traded at 109.40 per dollar, up 0.2%The offshore yuan was at 6.3643 per dollar, up 0.1%The Bloomberg Dollar Spot Index fell 0.1%The euro was at $1.2232
Bonds
The 10-year U.S. Treasury yield rose about two basis points to 1.62%Australia’s 10-year bond yield dipped two basis points to 1.69%
Commodities
West Texas Intermediate crude rose 1.9% to $67.56 a barrelGold was at $1,912.84 an ounce, up 0.3%
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