Asian shares track U.S. peers higher; dollar gains on yen

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HONG KONG (Businesshala) – Asian shares advanced on Friday, warmed by the embers of a strong day on Wall Street, which also supported risk-averse currencies and hurt the safe-haven yen, though concerns about the Chinese economy blew up. profit limited.

FILE PHOTO: A man wearing a facial mask, following the outbreak of the coronavirus disease (COVID-19), in front of an electric board showing stock indices of the Nikkei (top in C) and other countries, outside a brokerage in a business district in Tokyo Rises, Japan, January 4, 2021. Businesshala/Kim Kyung-hoon/File photo

Oil prices were also testing new multi-year highs, a drag on growth in energy-importing markets in North Asia, but there is good news for energy-exporting markets in Southeast Asia.

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MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.6% and Japan’s Nikkei rose 1.08%.

US stocks advanced overnight after falling new claims for unemployment benefits, lower-than-expected factory gate price inflation and forecast-beating results from the four largest US consumer banks.

The Dow Jones Industrial Average jumped 1.57%, the S&P 500 climbed 1.46%, and the Nasdaq Composite climbed 1.68%, though analysts said Asia is unlikely to match these increases.

“(US gains) will boost sentiment in the pocket, but from what we have seen recently in Asian markets, particularly in mainland China and Hong Kong stocks, regional concerns override some of the more positive sentiment emanating from US markets. did,” said Kyle Roda, an analyst at IG Markets.

“I believe things are going to be pretty mixed and volatile in Asian markets.”

Chinese blue chips fell soon after the bell but were last flat, while Hong Kong shares opened higher from a day’s break and remained flat before retreating.

US stock futures, the S&P 500 E-minis, rose 0.15%.

A data dump from China on Monday is high on investors’ minds, with the world’s second-largest economy leading the way as well as monthly investment and activity data.

“We expect GDP growth to slow to 5.6% year-on-year in the third quarter, in view of the persistent weakness in consumption and services amid repeated COVID outbreaks and fading from a lower year-ago base. It will happen.” Barclays analysts said in a note.

On Thursday, China’s September factory-gate inflation hit a record high in commodity prices, but weak demand limited consumer inflation, prompting policymakers to create a tightrope between supporting the economy and pushing producer prices forward. Had to walk on a rope.

In currency markets, the dollar hit a nearly three-year high on the yen on Friday, with a dollar buying 113.89 yen, the highest since December 2018.

The dollar index, which measures the greenback against a basket of currencies, was marginally lower at 94.00 on the day and was set for its first weekly decline since the beginning of last month versus major peers, on sterling and the euro. Lost a little ground.

The yield on the benchmark 10-year Treasury notes stood at 1.5247%, turning little on the day after trending lower this week from Tuesday’s four-month high of 1.631%.

The Australian dollar took a breather on Friday near its month high a day earlier, which CBA analysts said was due to a weaker dollar and firming commodity prices.

US crude rose 0.63% to $81.82 a barrel, near Monday’s seven-year high of $82.18. Brent crude rose 0.58% to $84.50 a barrel, hitting a three-year high on Monday. [O/R]

Bitcoin is also testing multi-month highs, trading near $57,100 after touching a five-month high of $58,550 on Thursday, with bitcoin bulls crossing April’s all-time high of $64,895.22 in the coming months. Talking about the possibility.

Reporting by Alan John; Editing by Muralikumar Anantharaman

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