Asian Stocks Near a Record High, Dollar Declines: Markets Wrap
Christopher Anstey, Bloomberg
A measure of Asian stocks headed for a record high in thin trading on Thursday, and the dollar slumped, two dynamics that have been features of markets for much of the year.
The MSCI Asia Pacific Index of stocks was set for a record close as of mid-afternoon trading, after recouping losses that began in late November in one of several waves of profit taking seen in a standout year. With little by way of fresh narratives to drive trading ahead of the New Year holidays, the dollar retreated in wake of a slide in 10-year Treasury yields.
While the Federal Reserve’s three interest-rate hikes might have argued for higher U.S. yields and a stronger greenback, instead the Fed’s low cap on its long-term estimated policy rate, alongside muted inflation, have proved the stronger dynamics. A softer dollar has been a boon for emerging markets, with the fast-growing Asian region no exception.
Shares in Hong Kong, Shanghai and Seoul rose, Japanese benchmarks dipped and Australian stocks edged up Thursday. Bitcoin retreated again, extending a sell-off that began last week, as South Korean regulators stepped up scrutiny of their citizens’ dealings with cryptocurrencies.
Raw-materials prices extended recent gains, with the Bloomberg Commodity Index edging up Thursday after closing at a six-week high yesterday. Oil traded just under $60 a barrel.
Among the key events remaining for investors this week:
U.S. trade figures are due Thursday. Egypt decides on interest rates.And here are the main moves in markets:
Stocks
Japan’s Topix Index fell 0.6 percent at the close in Tokyo, as did the Nikkei 225 Stock Average. Hong Kong’s Hang Seng Index climbed 0.6 percent and China’s Shanghai Composite rose 0.7 percent. South Korea’s Kospi was up 1.3 percent. Australia’s S&P/ASX 200 Index advanced 0.3 percent. Futures on the S&P 500 Index were little changed after the underlying gauge rose 0.1 percent Wednesday.
Currencies
The yen strengthened 0.5 percent to 112.79 per dollar. Euro rose 0.4 percent to $1.1931, and reached its strongest in almost four weeks. The pound sterling gained 0.3 percent to $1.3433. The Bloomberg Dollar Spot Index slid 0.3 percent after dropping 0.3 percent Wednesday.Bonds
The yield on 10-year Treasuries was at 2.42 percent after tumbling about 7 basis points Wednesday. Australian 10-year yields were at 2.67 percent, down more than 2 basis points.
Commodities
West Texas Intermediate crude was up 0.3 percent, at $59.75 a barrel. Gold futures rose 0.3 percent to $1,290.72 an ounce. LME copper futures rose 0.7 percent $7,293.00 per metric ton, reaching the highest levels since early 2014.
