ASIA STOCKS GAIN AS DOLLAR DIPS
Most Asian stocks looked poised to climb Thursday after US equities and bonds rallied on the Federal Reserve’s projections for rates to remain near-zero through 2023, Andreea Papuc reported for Bloomberg News.
US equity futures edged up, following a fresh record close for the S&P 500 Index as Fed Chairman Jerome Powell reiterated the central bank’s tolerant stance on inflation and the recent rise in bond yields. Consumer discretionary and industrial sectors led the benchmark index’s gains.
The Dow Jones Industrial Average also closed at an all-time high. Futures climbed in Japan and Hong Kong and were little changed in Australia.
Yields on shorter-dated Treasuries eased as the central bank pushed back on the market’s more aggressive rate-hike projections. The 10- and 30-year benchmarks also subsided from intraday peaks that marked their highest levels in over a year. The dollar weakened versus most major peers.
S&P 500 futures edged up 0.1% as of 7:03 a.m. in Tokyo. The S&P 500 Index rose 0.3%. Nikkei 225 futures rose 0.4%. Australia’s S&P/ASX 200 Index futures fell 0.5%. Hong Kong’s Hang Seng Index futures rose 0.7%. For currencies, the yen traded at 108.83 per dollar. The offshore yuan was at 6.4857 per dollar.
The Bloomberg Dollar Spot Index decreased 0.5%. The euro was at $1.1983. The yield on 10-year Treasuries gained 2 basis points to 1.64%. Australia’s 10-year bond yield added three basis points to 1.75%. For commodities, West Texas Intermediate (WTI) crude was at $64.64 a barrel. Gold rose 0.2% to $1,748.86 an ounce, Emily Barrett also reported for Bloomberg News.