ASIA STOCKS SET FOR MODEST GAINS ON THIN TRADING
Asian stocks look poised for gains in holiday-thinned trading as investors mulled Friday’s strong US jobs report. The dollar was little changed against its major peers, Emily Barrett reported for Bloomberg News.
Futures in Japan pointed to a modest rise. S&P 500 futures were little changed after closing higher Friday with the March payrolls report showing US employers added the most jobs in seven months.
The yield on 10-year Treasuries added five basis points to 1.72%. Many equity markets are closed Monday, including in Australia, China, and Hong Kong. Treasuries have a shortened session in Asia and futures were little changed in early trading. Oil slipped.
Investors are watching the progress of debate over US President Joe Biden’s $2.25 trillion infrastructure proposal, as Republicans expressed guarded support for a more limited plan.
The response so far in bond markets has been muted, with inflation concerns easing amid doubts over the viability of more-generous spending, even as central banks remain committed to keeping interest rates lower for longer.
“We are not doubting the market’s expectations of strong US economic momentum,” said Eric Robertsen, chief strategist at Standard Chartered Bank.
“But the market has also priced in much of the good news up front.”
S&P 500 futures were little changed as of 7:01 a.m. Tokyo time. They rose 0.4% Friday. Japan’s Nikkei 225 futures were up 0.2% earlier.
The yen was steady at 110.66 per dollar. The euro was flat at $1.1757. The yield on 10-year Treasuries added five basis points to 1.72% Friday. West Texas Intermediate crude fell 0.4% to $61.17 a barrel. Gold was flat at $1,729 an ounce.
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