DOLLAR IS DOWN AS ASIA STOCKS, U.S. FUTURES INCH UP
The dollar dipped as Asian stocks and U.S. futures rose Tuesday as investors weighed the pace of growth as nations vaccinate and economies reopen against a pick-up in virus cases in the region, Andreea Papuc reported for Bloomberg News on May 18, 2021.
Taiwan outperformed, jumping as much as 4%, after its biggest rout in more than a year. Japan and South Korea paced gains in a gauge of the region’s stocks. Nasdaq 100 futures outperformed.
Earlier, technology and communication services stocks led the benchmark S&P 500 lower, while energy shares rose. Apple Inc. and Microsoft Corp. weighed on the tech-heavy Nasdaq 100. The dollar edged lower, while Treasuries were stable after retreating.
Federal Reserve Vice Chair Richard Clarida said during a webinar that the weaker-than-expected April payroll report shows “we have not made substantial further progress” on the central bank’s goals for employment and inflation laid out as thresholds to begin scaling back the central bank’s massive monthly bond purchases.
“Hotter inflation has materialized and market volatility is rising as the economic restart gathers pace,” according to BlackRock Investment Institute strategists lead by Jean Boivin.
“This is playing out in line with our view that the economy is in a ‘restart.’ We prefer to look through any volatility and see a later ‘lift-off’ from zero rates than markets expect. This means higher-than-expected inflation in the medium term, and underpins our pro-risk stance."
S&P 500 futures rose 0.3% as of 10:24 a.m. in Tokyo. The S&P 500 fell 0.3%. Nasdaq 100 futures gained 0.4%. The Nasdaq 100 fell 0.6%. Topix index rose 1.5%.
Australia’s S&P/ASX 200 Index rose 0.6%. Kospi index climbed 1.1%. The Hang Seng Index rose 1%.
Shanghai Composite Index was little changed. The yen traded at 109.16 per dollar. The offshore yuan was at 6.4365 per dollar. The Bloomberg Dollar Spot Index dipped 0.1%. The euro was at $1.2163.
The yield on 10-year Treasuries was at 1.65%. Australia’s 10-year bond yield rose five basis points to 1.80%. West Texas Intermediate crude rose 0.4% to $66.52 a barrel. Gold rose 0.2% to $1,871.12, Vildana Hajric, and Kamaron Leach reported for Bloomberg News.