Asian equities mixed after growth data from Powell and China: markets shroud


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(Bloomberg) – Asian stocks were mixed on Thursday as traders digested a slowdown in Chinese growth along with the signal from Federal Reserve Chairman Jerome Powell that more US economic progress is needed before stimulus measures can be reduced. Crude oil has slipped.

Shares fell in Japan, stabilized in China, and rose in Hong Kong. US contracts fluctuated after modest gains by the S&P 500 and Nasdaq 100 on Powell’s reinsurance of accommodative policy and reiteration that high inflation is likely to moderate. Treasury yields fell and the dollar reduced its pullback.

China’s economy slowed largely on plan in the second quarter, with the recovery showing signs of stabilizing after record growth in the previous three months. The central bank has rolled over some of the maturing medium-term monetary policy loans, a move that confirms its intention to keep monetary policy largely unchanged.

Oil fell below $ 73 a barrel thanks to fuel stocks building up in the United States and a possible OPEC + deal to increase supply. Gold was around a four-week high, helped by inflation concerns and Powell’s comments on the stimulus.

Just when the Fed could start cutting its monthly bond purchases by $ 120 billion, and the spread of the Covid-19 delta variant, are among the key variables for investors whose global stocks are near all-time highs . The possibility of spikes in economic rebounds as well as corporate profit growth are among other concerns.

“FOMC Chairman Jay Powell provided more conciliatory testimony than expected in Congress,” Kim Mundy, a strategist at the Commonwealth Bank of Australia, wrote in a note. “We continue to expect the FOMC to announce its intention to start reducing its asset purchases at the September meeting and to start decreasing in October.”

Powell also pointed out in comments to the House Financial Services Committee that while officials expect high inflation to be temporary, they will respond if inflation turns out to be consistently and significantly above their target. by 2%. The latest data showed US producer prices surged in June, beating estimates, adding to signs of rising costs as the economy reopens.

Meanwhile, the United States has said it has no plans to restart a regular economic dialogue with China suspended under the Trump administration, as tensions between Beijing and Washington continue to simmer. In South Korea, the central bank has maintained its record interest rate as the upsurge in cases of the virus complicates a plan to normalize policies.

For more market commentary, follow the MLIV blog.

Here are some events to watch this week:

Bank of Japan interest rate decision Friday

Here are some of the main movements in the financial markets:

Actions

S&P 500 contracts lost 0.1% at 11:08 am in Tokyo. The S&P 500 rose 0.1% Nasdaq 100 contracts were flat. The Nasdaq 100 rose 0.2% Japan’s Topix index lost 0.8% Australia’s S & P / ASX 200 index remained stable South Korea’s Kospi index rose 0, 2% Hong Kong Hang Seng Index increased 0.6% Shanghai Composite Index in China was little changed

Currencies

Japanese Yen was trading at 109.95 per dollar Offshore Yuan was 6.4685 per dollar Bloomberg Dollar Spot Index rose 0.1% Euro was at $ 1.1826

Obligations

The 10-year T-bill yield was 1.33%, down about one basis point Australia’s 10-year bond yield fell four basis points to 1.30%

Merchandise

West Texas Intermediate crude was at $ 72.43 per barrel, down 1% Gold was at $ 1,826.64 per ounce

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