Most Asian stocks fell on Thursday as investors weighed on corporate accounts, rising inflation and the outlook for the housing sector in China. The Japanese yen strengthened.
As the China Evergrande Group sank amid deteriorating cash contractions, other stocks in the sector rose after regulators said the risks were controllable. Futures in the US and Europe were in the red after a mixed session on Wall Street, in which the Dow Jones registered a new ATH, the S&P 500 approached ATH, and the tech Nasdaq 100 fell.
China’s coal futures have collapsed amid officials’ efforts to curb electricity costs.
Corporate results have eased, but not removed, concerns that inflationary pressures – fueled by energy collapses and supply chain shocks – could slow recovery from the pandemic. Investors are also looking at the prospect of reduced central bank support as they watch for difficulties in China’s real estate sector.
In recent comments from the Federal Reserve, Gov. Randall Quarles said he supported the initial move to slow monetary stimulus next month and was concerned about escalating inflationary pressures, which may require a political response.
The Fed is “trapped, in a very difficult situation,” said David Kudla, CEO of Mainstay Capital Management. This is due to the possibility of a reduction in incentives, followed by rising interest rates amid a significant slowdown in economic expansion, he said.
Meanwhile, the US Food and Drug Administration has cleared the way for Moderna Inc. boosters. and Johnson & amp; Johnson. Russia is among the countries tightening restrictions to curb growing infections.
Some of the main moves in the markets:
The S&P 500 rose 0.4%. Nasdaq 100 is cheaper by 0.1%. The Japanese Topix index fell 1.1%. The Australian S & amp; The P / ASX 200 added 0.1%. South Korea’s Kospi fell 0.1%, while Hong Kong’s Hang Seng lost 0.3%. Euro Stoxx 50 futures fell 0.3%.
The Japanese yen rose 0.2% to 114.10 per dollar, while the offshore yuan was 6.3889 per dollar. The Bloomberg Dollar Spot Index was a flat.
Yields on 10-year US bonds were 1.65%, while in Australia it was 1.79%, down two basis points.
West Texas Intermediate Crude Oil traded at $ 83.37 a barrel, while gold was at $ 1,785.90, up 0.2%.
Junior Trader Nikolay Stoychev