ASIAN STOCKS MIXED, U.S. FUTURES SAG AS TECH ISSUES RETREAT
Asian stocks were mixed and US equity futures retreated Tuesday in the wake of a dip in technology giants on Wall Street. The dollar steadied after declining along with Treasury yields, Andreea Papuc reported for Bloomberg News.
South Korean shares edged down while Hong Kong fluctuated and Australia rose modestly. Trading will be limited with Japan and China among markets closed for holidays.
US contracts fell after the S&P 500 ended near session lows and shares such as Tesla Inc. and Amazon.com Inc. sapped the Nasdaq 100. Ten-year Treasury yields dropped back to around 1.6% amid comments from Federal Reserve Chair Jerome Powell that the economic recovery is patchy.
A gauge of commodity prices is at the highest level since 2012. Silver is among the precious metals that have rallied as the prospect of near-zero rates for longer boosts demand. Oil was steady after climbing over 1%. Digital token Ether extended its surge to set another record. Data showed growth among US manufacturers cooled in April, while a gauge of prices paid for materials jumped to the highest since 2008.
The figures were a reminder that the rebound from the pandemic still faces risks, such as faster inflation. Powell reiterated progress in the recovery has been uneven across racial and income divides. New York Fed President John Williams said current conditions are “not nearly enough” for a shift in the monetary policy stance.
S&P 500 futures fell 0.3% as of 9:45 a.m. in Hong Kong. The S&P 500 rose 0.3%. Nasdaq 100 contracts slipped 0.4%. Australia’s S&P/ASX 200 Index rose 0.1%. South Korea’s Kospi shed 0.2%. Hong Kong’s Hang Seng Index was steady. Euro Stoxx 50 futures fell 0.1%. The yen fell 0.1% to 109.20 per dollar.
The offshore yuan was at 6.4767 per dollar. The Bloomberg Dollar Spot Index rose 0.1%. The euro traded at $1.2050, down 0.1%. Ten-year Treasury futures were little changed. The yield on 10-year Treasuries declined almost three basis points to 1.60%. Cash Treasuries won’t trade in Asia Tuesday.
Australia’s 10-year bond yield fell almost two basis points to 1.74%. West Texas Intermediate added 0.2% to $64.62 a barrel. Gold was down 0.1% to $1,790.66 an ounce after climbing 1.3%, Rita Nazareth and Claire Ballentine reported for Bloomberg News.