Bloomberg
Asia Stocks Point Lower After GDP Spurs U.S. Gains: Markets Wrap
(Bloomberg) — Asian stocks look set to weaken Friday after another all-time record for the U.S. market overnight, as investors weighed the latest corporate earnings and solid economic growth data.Futures pointed down in Hong Kong, Australia and Japan, where markets will reopen after a holiday. U.S. contracts slipped following a new high for the S&P 500 and a stronger close for the Nasdaq 100 amid mixed earnings reports.Ford Motor Co. and EBay Inc. disappointed, while Facebook Inc.’s results took it to a record. Apple Inc. wiped out earlier earnings-driven gains on concerns about chip shortages. Amazon.com Inc. climbed after hours on a better-than-estimated revenue forecast, while Twitter Inc. sank amid a lackluster outlook.Risk sentiment was buoyed by data showing the U.S. economy expanded at a robust 6.4% annualized rate in the first quarter, while jobless claims fell to a fresh pandemic low. Treasuries weakened and the dollar was steady.Investors are anticipating more support from the government to add the optimism from economic numbers. President Joe Biden has unveiled a $1.8 trillion social package in addition to his infrastructure plans. And there’s no sign yet of the Federal Reserve withdrawing policy accommodation, with Chair Jerome Powell reasserting this week that he’s looking for more progress in the jobs market, and that inflation pressures are likely temporary.“All evidence still points to continued support from both fiscal and monetary policy against a backdrop of accelerating corporate earnings,” said Mark Haefele, UBS Global Wealth Management’s chief investment officer. “This reinforces our view that markets can advance further, with cyclical parts of the market — such as financials, energy, and value stocks — likely to benefit most from the global upswing.”Meanwhile, copper topped $10,000 a metric ton for the first time since 2011, nearing the all-time high set that year as rebounding economies stoke demand and mines struggle to keep up. Crude oil held gains on a confident outlook on demand from OPEC and its allies, despite risks from India’s Covid-19 crisis.These are some of the main moves in markets:StocksS&P 500 futures dipped 0.1% as of 7:37 a.m. in Tokyo. The benchmark index closed 0.7% higherNasdaq 100 contracts also fell 0.2%, after the index rose 0.5%Nikkei 225 futures slipped about 0.3%Australia’s S&P/ASX 200 Index futures edged down 0.2%Hang Seng Index futures dropped 0.3% earlierCurrenciesThe euro was little changed at $1.2120The British pound was at $1.3941The Japanese yen traded at 108.93 per dollarThe Bloomberg Dollar Spot Index rose 0.1%BondsThe yield on 10-year Treasuries advanced two basis points to 1.63%CommoditiesWest Texas Intermediate crude traded just below $65 a barrelGold traded at $1,771.67 an ounceFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
