Asia stocks climb after Wall Street tech rally: markets wrap
Shares mostly rose in Asia following a tech-driven rally on Wall Street, as investors look ahead to crucial US inflation data due on Tuesday.
Stocks gained in Japan and Hong Kong, while those in mainland China and Australia were a tad down. The moves followed Friday’s 2.3% gain for the Nasdaq 100, fueled by a record high for Microsoft. The S&P 500 rose 1.6%. US stock futures slid in Asia’s morning session.
Markets are closed in Singapore and Malaysia for a holiday.
Australian and New Zealand government bonds edged lower after short-dated Treasuries sold off on Friday. Those declines failed to weigh on the long end of the curve. The 30-year yield was left largely unchanged while the 10-year yield rose three basis points.
Both Treasuries and the dollar were steady on Monday.
All eyes are on the upcoming US consumer price data, which is expected to show inflation easing to a year-on-year rate of 3.3% in October, down from 3.7% in the prior month. Meanwhile, more signs of thawing US-China ties are emerging ahead of Wednesday’s summit between Joe Biden and Xi Jinping, with Beijing said to be weighing ending a freeze on Boeing’s aircraft.
In Japan, producer prices declined in October from the prior month. India will release its latest inflation report Monday and new loan and money supply figures for China could also be released.
“We are going to see a change in policy in Japan and that is going to make the yen attractive,” Sonal Desai, chief investment officer for fixed income at Franklin Templeton, said in an interview with Bloomberg Television. “The BOJ will ultimately be pushed towards changing its own interest rate stance which will bring money back.”
ANZ Group Holdings Ltd. shares fell after the bank’s chief executive officer warned of a challenging economic environment ahead in its latest earnings results. Profits for the group were buoyed by higher interest rates.
Other companies set to report Monday include Apple supplier Hon Hai Precision Industry, also known as Foxconn, Chinese tech giants JD.com Inc and Tencent Holdings Ltd., Japanese financial heavyweights Mitsubishi UFJ Financial Group and Mizuho Financial Group, Walmart Inc. and Siemens.
JD.com and Alibaba Group Holding reported a pickup in sales for Singles’ Day, following steep discounts offered by the e-commerce groups.
Elsewhere, oil trimmed gains from Friday against the backdrop of concerns over global demand. Gold was little changed. Bitcoin hovered near $37,000 — around the highest price in 18 months.