© Reuters. FILE PHOTO: During the coronavirus disease (COVID-19) outbreak, a man in a protective mask walks past an electronic board showing stock indices from various countries, including the empty Russian Trading System (RTS) index, at
By Kevin Buckland
TOKYO (Reuters) – Long-dated U.S. Treasury yields fell to their lowest in more than seven weeks on Friday, while the dollar Major currencies fell back to recent lows as markets continued to price in dovish signals from the Fed.
Expectations for a slowdown in the pace of U.S. monetary tightening starting as early as next month continued to support some Asian stocks, but Hong Kong shares were bleak as record COVID-19 infections in China dimmed the outlook fall.
Tokyo stocks fell to 3.65%, the lowest level since Oct. 5, following Thursday’s US Thanksgiving holiday. The two-year yield fell to a one-week low of 4.424%.
The gauge of the greenback fell 0.11% to 105.76 against the euro, yen and four other currencies, back on Thursday’s low of 105.62.
A “vast majority” of Fed policymakers agreed that a slower pace of rate hikes “may soon be appropriate,” minutes of their latest meeting showed on Wednesday.
Futures markets suggest investors now expect U.S. interest rates to peak at just above 5% around May and see about a three-point chance of a Fed rate slowdown Bis increased from a series of 75 basis points to a half basis point hike on December 14.
“A growing number of market participants are confident about the long-term peak,” said Naka Matsuzawa, Nomura’s chief Japan macro strategist in Tokyo. Heading for a Fed pause.
U.S. E-mini futures rose 0.25% to restart Wall Street trading on Friday.
Asia Pacific stocks were mixed, Australia’s benchmark rose 0.24%, but a sell-off in Hong Kong weighed on sentiment elsewhere in the region.
) The Hang Seng fell 0.86%, led by a 2.29% decline in technology stocks.
Down 0.36%, South Korea’s Kospi edged down 0.08%.
China reports another record daily number of COVID infections on Friday New highs, localized lockdowns, mass testing and other restrictions imposed in cities across the country, dashed recent hopes that the world’s second-largest economy would move from a strict zero-infection policy to a zero-infection COVID policy that coexisted with the disease.
“Investors are right to be concerned,” said ING economist Rob Carnell. “China doesn’t have the health network to handle a full-blown outbreak where a large number of people get sick. “
” Kind of like living with COVID in the mid term is a wonderful dream, but how do you make it happen? Carnell added. Supporting the sluggish housing market. Property developer stock index soared 5.84%.
Asian oil prices rose amid thin liquidity, regaining gains in a week Some of the losses come amid concerns over Chinese demand and haggling over prices. Western cap on Russian oil prices. [O/R]
Futures up 28 cents, or 0.33% , trading at $85.62 a barrel.
U.S. West Texas Intermediate (WTI) crude futures rose 49 cents, or 0.49%, to $78.43 a barrel. There was no WTI settlement on Thursday due to the U.S. Thanksgiving holiday.
Both contracts are still headed for a third straight weekly loss, on track for a drop of around 2%.
Gold rises 0.2% to around $1,758 an ounce amid dollar weakness.