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Asian markets set for a mixed open
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Loading...Crude’s slump weighed on equities linked to the energy sector with Asian markets heading for a mixed open, while the Australian and New Zealand dollars held losses.
Equity-index futures rose in Hong Kong, while contracts in Japan and Australia pointed to a flat start. Oil sank from a five-week high, dipping below $49 a barrel, after OPEC extended plans to limit production without deepening the cuts. Asian markets may take some solace from a fresh record close on the S&P 500 Index and a strengthening dollar spurred by retailer results that boosted confidence in the American consumers’ ability to buoy economic growth. Commodity currencies maintained losses
against the dollar.
Global equities are on course for the best week since April, trading at a record high after six weeks of gains, as investors bet global economic growth can withstand higher U.S. interest rates as soon as next month. Stocks have recovered from worries surrounding the prospects for President Donald Trump’s
reform policies, which triggered the biggest slide on the S&P 500 in eight months last week. Still, the yield on 10-year Treasuries remains at 2.25 percent as bonds climb amid concern inflation is lagging expectations.
Volume may be lower than normal as we approach the long weekend in the U.S. and the U.K., both of which have holidays on Monday.
Japanese inflation probably picked up last month as oil prices rose, inching toward the central bank’s 2 percent target. Both headline and core CPI are estimated to have increased 0.4 percent from a year earlier, compared with 0.2 percent in March. April’s advance in producer prices suggests gains could
continue.
Futures on the Nikkei 225 were little changed in Singapore as were contracts on Australia’s S&P/ASX 200 Index. Futures on Hong Kong’s Hang Seng Index and those on the FTSE China A50 Index rose 0.1 percent.
The Aussie lost 0.7 percent on Thursday, declining along with the Canadian dollar and the kiwi. Currencies of countries heavily reliant on commodities as an export all suffered in the wake of the slide in raw materials.
Source of Chart: Bloomberg Pro Terminal
Jr Trader Alexander Kumanov
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