ASIAN STOCKS, U.S. FUTURES STEADY AS DOLLAR INCHES UP

Asian stocks were steady Friday, May 21, 2021, after a Wall Street rebound as traders weighed the economic recovery from the pandemic as well as the possibility of reduced US stimulus. The dollar pared a decline, Sunil Jagtiani reported for Bloomberg News.

Shares rose in Japan but slipped in Hong Kong and China. Overnight, nearly all major industry groups in the S&P 500 pushed higher, while the Nasdaq 100 rallied past its 50-day moving average.

A drop in US initial jobless claims put the focus back on the economic recovery, but there are lingering fears of price pressures imperil loose financial conditions. US equity contracts fluctuated.

Treasury yields maintained a retreat. Weaker-than-expected demand for an auction of 10-year inflation-protected debt suggested confidence in the Federal Reserve’s narrative that the recent acceleration in inflation is unlikely to be sustained. A pause in this year’s commodity boom continued.

S&P 500 futures climbed 0.1% as of 11:27 a.m. in Tokyo. The index rose 1.1%. Nasdaq 100 contracts added 0.1%. The gauge rose 1.9%. Japan’s Topix index increased 0.2%. Australia’s S&P/ASX 200 index lost 0.1%. South Korea’s Kospi index shed 0.1%.

Hong Kong’s Hang Seng index dipped 0.4%. China’s Shanghai Composite index dropped 0.6%. The Bloomberg Dollar Spot Index climbed 0.1%.

The euro was at $1.2229. The British pound was at $1.4173. The Japanese yen traded at 108.85 per dollar.

The offshore yuan was at 6.4359 per dollar. The yield on 10-year Treasuries held at 1.63%.

Australia’s 10-year yield dropped three basis points to 1.74%. West Texas Intermediate crude fell 0.1% to $61.89 a barrel. Gold fell 0.3% to $1,871.89 an ounce, Laura Cooper and Eric Lam reported for Bloomberg News.

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