(Bloomberg) — Asian stocks were mixed Tuesday as Japan extended a rally and traders weighed the resilience of a global recovery supported by central bank stimulus but facing challenges from the delta virus strain.
Japan’s Nikkei 225 hit 30,000 for the first time since April as an index reshuffle added to optimism that a new prime minister will usher in favorable policies. Equities fluctuated in Hong Kong and China. S&P 500 and Nasdaq 100 futures edged up ahead of a resumption in U.S. markets after a holiday.
Treasury yields climbed and dollar dipped. New Zealand’s 10-year yield rose to the highest since April 2019. Oil extended losses amid Saudi Arabia’s price cut for Asian buyers and demand threats from the outbreak of the delta variant. Bitcoin topped $52,000. El Salvador bought 400 coins ahead of adopting the cryptocurrency as legal tender on Tuesday.
In China, traders will monitor trade data for guidance on the state of the economy. Australia is due to revisit the question of whether to delay a planned taper of bond purchases as lockdowns sap the nation’s recovery.
Global shares at a record, weathering concerns that the delta strain is slowing the recovery from the pandemic and exacerbating supply snarls that are fueling inflation. A weak U.S. jobs report has bolstered the view that the Federal Reserve will delay paring the stimulus that has helped markets.
“The delta variant has sort of spooked the markets a little bit,” Sylvia Jablonski, Defiance ETFs chief investment officer and co-founder, said on Bloomberg Television. “Investors have been on the sidelines again. Although the market is rallying there is still a lot of cash that has to be deployed and I think we are going to see some positive results going into the end of the year particularly in the tech names.”
Goldman Sachs Group Inc. economists revised down their forecast for U.S. expansion this year, in part as the delta variant crimps consumer spending. The Covid-19 death toll is jumping in the world’s largest economy, highlighting vaccination gaps.
Elsewhere, aluminum supplier Norsk Hydro ASA jumped to a 13-year high in Oslo. Aluminum hit the highest in over a decade as political unrest in Guinea fueled concerns over supply of the raw material needed to make the metal.
What to watch this week:
U.S. President Joe Biden will likely make his choice this week on whether to renominate Fed Chair Jerome Powell to a second termReserve Bank of Australia rate decision TuesdayChina trade data will provide clues on its economic recovery, TuesdayEl Salvador’s Bitcoin law takes effect, making the virtual currency legal tender, TuesdayDallas Fed President Robert Kaplan holds a virtual town hall discussion WednesdayECB President Christine Lagarde holds a press conference after the bank’s rate decision ThursdayChina PPI, CPI, new yuan loans, money supply, aggregate financing, Thursday
For more market analysis, read our MLIV blog.
Some of the main moves in markets:
Stocks
S&P 500 futures added 0.1% as of 10:32 a.m. in Tokyo.Nasdaq 100 futures increased 0.2%Japan’s Topix index rose 1%Australia’s S&P/ASX 200 Index fell 0.4%South Korea’s Kospi index slipped 0.7%Hong Kong’s Hang Seng Index was little changedChina’s Shanghai Composite Index was steady
Currencies
The Japanese yen was at 109.76 per dollar, up 0.1%The offshore yuan was at 6.4516 per dollarThe Bloomberg Dollar Spot Index slid 0.1%The euro traded at $1.1883
Bonds
Ten-year U.S. Treasury yields rose about two basis points to 1.34%Australia’s 10-year bond yield rose about two basis points to 1.28%
Commodities
West Texas Intermediate crude fell 0.5% to $68.95 a barrelSpot gold was at $1,826.62 an ounce, up 0.2%
More stories like this are available on bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2021 Bloomberg L.P.
