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STOCKS, EQUITY FUTURES TUMBLE, FOLLOW TAIWAN’S LEAD
- By The Financial District
- May 12, 2021
- 2 min read
Most Asian stocks fell Wednesday, May 12, 2021, amid concern that faster inflation and the surge in commodities could test the economic recovery from the pandemic, Andreea Papuc and Emily Barrertt reported for Bloomberg News.
Taiwan’s benchmark posted a record drop of as much as 8.6%, led by steep losses in semiconductors and amid a diplomatic spat with China and further COVID-19 curbs. Stocks fluctuated in Hong Kong and slid in Japan and South Korea, putting the regional gauge on course for its lowest close since January.
US contracts slipped after the S&P 500 continued its drop from a record high Friday. Dip buyers helped the tech-heavy Nasdaq 100 erase a loss of almost 2% to finish little changed.
Debate continues over whether price pressures will be persistent enough to force the Federal Reserve to tighten policy sooner than current guidance suggests. A chorus of Fed officials said the US economy is on the road to recovery but still faces risks, and reiterated that it’s premature to discuss pulling back monetary support.
“It’s all about inflation expectations,” Priya Misra, TD Securities global head of rates strategy, said on Bloomberg Television, adding that if the US CPI report signals “inflation is likely to be higher for a while, I think the taper discussion will come back into the forefront and then we can get a bigger interest rate move.”
S&P 500 futures fell 0.4% as of 12:35 p.m. in Tokyo. The S&P 500 index fell 0.9%. Nasdaq 100 contracts lost 0.5%. The index was little changed. Japan’s Topix index shed 1.4%. Australia’s S&P/ASX 200 index was down 0.7%. South Korea’s Kospi fell 1.6%.
Hong Kong’s Hang Seng index rose 0.1%. China’s Shanghai Composite index was flat. Euro Stoxx 50 futures retreated 0.2%. The yen fell 0.2% to 108.83 per dollar. The offshore yuan was at 6.4361 per dollar.
The Bloomberg Dollar Spot Index added 0.2%. The euro traded 0.2% lower at $1.2126. The yield on 10-year Treasuries was steady around 1.63%. Australia’s 10-year bond yield climbed six basis points to 1.78%.
West Texas Intermediate crude was at $65.10 a barrel. Gold fell 0.5% to $1,827.86 an ounce, Vildana Hajric, Claire Ballentine and Shoko Oda reported for Bloomberg News.
