(Bloomberg) — Asian stocks were mostly higher Friday and U.S. equity futures fluctuated after the S&P 500 Index swept to a record on optimism over the $1.9 trillion U.S. stimulus package. The dollar and Treasury yields climbed.
MSCI Inc.’s regional gauge rose a fourth day as Japan rallied amid a jump in Rakuten Inc. on news of an investment by Japan Post Holdings Co. U.S. equity futures were steady following broad S&P 500 gains and a Nasdaq 100 rebound. South Korean e-commerce giant Coupang Inc. popped 41% in its debut.
Chinese shares posted modest gains amid a renewed focus on U.S.-China relations. The Biden administration informed some suppliers to Huawei Technologies Co. of tighter conditions on previously approved export licenses, prohibiting items for use in or with 5G devices.
Relatively smooth bond sales this week eased some concerns on the fixed-income outlook but traders remain focused on Treasury yields, with rates on the 10-year benchmark pushing up to about 1.58% on Friday. Verizon Communications Inc. saw surging demand for its $25 billion debt sale.
“Fiscal stimulus on the upper end of expectations, an improved vaccine rollout, better than expected economic data — everything is coalescing around a much stronger growth out look for 2021,” said Lisa Hornby, head of U.S. multisector fixed-income at Schroders.
Markets are now signaling a little less concern that the economic recovery from the pandemic will stoke excessive inflation. Bond yields are below recent one-year peaks and high-valuation stocks have rallied. A gauge of global stocks is on course for its biggest weekly advance in just over a month.
The focus turns to Friday’s U.S. producer price data and the Federal Reserve decision next week. On Thursday, the European Central Bank pledged to step up the pace of bond purchases to keep rising yields from derailing the recovery.
Elsewhere, oil slipped below $66 a barrel, and Bitcoin traded at around $57,000 after climbing within reach of an another all-time high.
These are the main moves in markets:
Stocks
S&P 500 futures were little changed as of 6:52 a.m. in London. Nasdaq 100 futures shed 0.5%. The S&P 500 Index gained 1% on Thursday.Australia’s S&P/ASX 200 Index climbed 0.8%Japan’s Topix Index advanced 1.4%.South Korea’s Kospi Index added 1.4%.Shanghai Composite Index edged up 0.4%.Hong Kong’s Hang Seng Index fell 0.9%.Euro Stoxx 50 futures were flat.
Currencies
The Bloomberg Dollar Spot Index rose 0.4%.The euro dipped 0.3% to $1.1946.The British pound slipped 0.3% to $1.3947.The Japanese yen fell 0.3% to 108.87 per dollar.
Bonds
The yield on 10-year Treasuries rose about five basis point to 1.58%.Australia’s 10-year yield was five basis points higher at 1.70%.
Commodities
West Texas Intermediate crude slipped 0.7% to $65.56 a barrel.Gold was 0.7% lower at about $1,711 an ounce.
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