Publications
Partners
Tokyo - Most Asian equity benchmarks declined with US futures and the dollar rose as Treasury yields climbed back toward recent four-year highs.
Japan’s Topix index dropped after staging its second-best performance this year, while shares in Australia and South Korea also fell, taking their cue from European markets as US equities and Treasuries took a break for the Presidents’ Day holiday. The MSCI Asia Pacific Index declined. Hong Kong shares fluctuated after traders returned to their desks after a holiday.
Investor focus now turns to the US Treasury, which opens its auction floodgates this week, beginning with $151bn of short-term bills on Tuesday. With little in the way of significant economic data on the schedule, the sales will provide the clearest gauge yet of how steeply bond yields may rise in the world’s largest economy. Traders will also be parsing minutes from the Federal Reserve’s latest meeting.
Bank of Japan (BoJ) Governor Haruhiko Kuroda did not discuss monetary policy during an appearance in parliament. Speculation has been swirling about the possibility the BoJ is scaling back its stimulus since the central bank reduced its purchases of government bonds in January.
The Reserve Bank of Australia reiterated in minutes of this month’s policy meeting that inflation is expected to “only gradually” accelerate as the economy strengthens and wage pressures increase.
Elsewhere, oil climbed above $62 a barrel for the first time in more than a week as an alliance of some of the world’s largest oil producers signaled further cooperation to tighten supplies through the end of the year. Bitcoin broke above $11 500.
Here are some key events scheduled for this week:
• The Federal Reserve will release minutes on Wednesday of its January 30-31 meeting, Janet Yellen’s last as chair, where officials kept the rate unchanged.
• Fed policy makers speaking this week include New York Fed President William Dudley and Atlanta Fed President Raphael Bostic.
• Cleveland Fed President Loretta Mester is among speakers at the US Monetary Policy Forum in New York City.
• Companies announcing earnings this week include: Walmart, Home Depot, Glencore, Barclays.
• Chinese markets reopen on Thursday.
These are the main moves in markets:
Stocks
• Euro Stoxx 50 futures rose 0.1% in early European trading.
• Futures on the S&P 500 lost 0.2%.
• The Topix fell 0.7% at the close in Tokyo.
• Japan’s Nikkei 225 Stock Average declined 1%.
• Australia’s S&P/ASX 200 ended flat.
• South Korea’s Kospi was down 1.1%.
• The Hang Seng Index in Hong Kong shed 0.2%.
• The MSCI Asia Pacific Index declined 0.5%.
Currencies
• The Bloomberg Dollar Spot Index rose 0.2%.
• The euro declined 0.3% to $1.2375.
• The yen fell 0.3% to 106.90 per dollar.
Bonds
• The yield on 10-year US Treasuries climbed more than two basis points to 2.90%.
• The two-year note rose more than three basis points to 2.22%, the highest since 2008.
• German 10-year bund yields were up one basis point at 0.75%.
Commodities
• West Texas Intermediate crude rose 1% to $62.31 a barrel.
• Gold fell 0.5% to $1 339.94 an ounce.
* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER
