(Bloomberg) — Stocks in Asia were mixed with Japanese stocks heading toward a new three-decade high, while other markets fell broadly after a quiet session on Wall Street.
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The Nikkei 225 jumped more than 1% to extend its gains after the index reached its highest levels since 1990 on Tuesday. The gains boosted a gauge of Asian stocks, which rose despite declines in Australia and South Korea. Standards have fluctuated in China.
US stock futures were little changed. The S&P 500 closed Tuesday down 0.2%, while the tech-heavy Nasdaq 100 managed to advance by the same amount, continuing a rebound in tech stocks after heavy selling last week.
“As market expectations for an early Fed rate cut after the start of the new year subsided, Japanese stocks remained steady on expectations that the yen’s depreciation against the dollar would support corporate earnings,” wrote Rei Nishihara, senior Japan equity analyst at JPMorgan. In a note.
Bitcoin settled to trade 1% higher at around $45,934, after intense volatility on speculation that the US Securities and Exchange Commission had approved spot bitcoin exchange-traded funds. The SEC said in a statement that it had not yet granted approval for ETFs, and said that the conflicting post published minutes earlier on the regulator’s official X account was untrue.
Yields on 10-year Treasury bonds and the dollar stabilized in Asian trading. The yen continued to weaken against the dollar.
Among the key data out of Asia, Japanese workers’ wage growth slowed sharply, an unwelcome development for the Bank of Japan which wants to see wage increases lead to price increases as a prerequisite for monetary policy normalization. Australia’s inflation rate fell, strengthening the case for keeping interest rates unchanged. The Australian dollar rose against the dollar.
Investors will be focused on the headline inflation report from the US later this week for signals on the timing of a rate cut by the Fed.
The growing mismatch between aggressive pricing in US interest rate cuts and resilient economic fundamentals, reducing the need for such easing, risks creating a “headwind” scenario for global markets, according to Max Kittner of HSBC Holdings Plc. The Fed is expected to begin its monetary easing cycle in June, after market prices indicate May or even March.
China’s inflation, trade and credit reports are also scheduled to be released in the following days, and will provide a health check on the world’s No. 1 report. 2 Economics.
Geopolitics remained in focus. The Chinese-American envoy said that his country has no room to reach a settlement with those who defend Taiwan’s independence.
Elsewhere, oil rose to a compound gain of more than 2% on Tuesday amid signs of continued shrinkage in US inventories, and with official forecasts pointing to a narrow global deficit this year.
Main events this week:
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US wholesale inventories on Wednesday
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The World Economic Forum’s Global Risks Report will be released on Wednesday
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New York Fed President John Williams speaks on Wednesday
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US Consumer Price Index, Initial Jobless Claims, Thursday
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China CPI, Producer Price Index, Trade, Friday
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UK industrial production, Friday
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US Producer Price Index, Friday
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Some of the largest U.S. banks report fourth-quarter results on Friday
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Minneapolis Fed President Neel Kashkari speaks on Friday
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European Central Bank chief economist Philip Lane speaks on Friday
Some key movements in the markets:
Stores
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S&P 500 futures were little changed as of 10:49 a.m. Tokyo time
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Nasdaq 100 futures were little changed
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Japan’s Topix index rose 1.1%.
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Australia’s S&P/ASX 200 index fell 0.4%.
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The Hang Seng Index in Hong Kong fell by 0.2%.
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Shanghai Composite Index fell 0.5%
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Euro Stoxx 50 futures fell 0.1%
Currencies
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The Bloomberg Dollar Spot Index was little changed
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There was little change in the euro at $1.0932
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The Japanese yen fell 0.2 percent to 144.78 yen to the dollar
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There was little change in the yuan in external transactions at 7.1857 to the dollar
Digital currencies
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Bitcoin rose 0.9% to $45,840.15
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Ethereum rose 2.5% to $2,374.51
Bonds
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The yield on 10-year Treasury bonds was unchanged at 4.01%.
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The yield on 10-year Japanese bonds fell by 2.5 basis points to 0.560%.
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The 10-year Australian bond yield was little changed at 4.11%.
Goods
This story was produced with assistance from Bloomberg Automation.
–With assistance from Rita Nazareth and Matthew Burgess.
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