U.S. FUTURES, ASIA STOCKS SLIP

US futures and Asian stocks declined Thursday, June 17, 2021, after Federal Reserve officials sped up their expected pace of policy tightening. The dollar and Treasury yields held gains, Andreea Papuc reported for Bloomberg News.

An MSCI gauge of Asian shares was on track for its biggest slide in a month, though the number of stocks that rose and fell was evenly split. Japanese stocks underperformed, while Hong Kong shares fluctuated and Chinese equities ticked up.

S&P 500 futures slipped after the benchmark closed down, but off its lows as Fed Chair Jerome Powell downplayed the risk of an immediate rate increase. Policymakers disclosed that they expect two hikes by the end of 2023 and would begin a discussion about scaling back bond purchases.

Bonds sank in Australia and New Zealand after Treasury yields jumped as the market repriced the timing of rate increases. Emerging market currencies in Asia tumbled, led by the South Korean won, after a dollar index had its biggest jump in a year. Yield premiums on investment-grade dollar bonds from borrowers in Asia ex-Japan widened.

S&P 500 futures fell 0.4% as of 11:30 a.m. in Tokyo. The S&P 500 fell 0.5%. Nasdaq 100 futures lost 0.5%. The Nasdaq 100 fell 0.3%. Topix index fell 0.8%. Australia’s S&P/ASX 200 Index lost 0.3%. Kospi index retreated 0.6%.

Hang Seng Index was little changed. Shanghai Composite Index rose 0.2%. Euro Stoxx 50 futures fell 0.5%. The yen traded at 110.63 per dollar. The offshore yuan was at 6.4262 per dollar, up 0.2%. The Bloomberg Dollar Spot Index was little changed. The euro traded at $1.2002.

The yield on 10-year Treasuries held at 1.58%. Australia’s 10-year bond yield climbed eight basis points to 1.63%. West Texas Intermediate crude slid 0.9% to $71.52 a barrel. Gold rose 0.7% to $1,823.77, Katherine Greifeld and Kamaron Leach reported for Bloomberg News.

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