© Reuters. Passers-by wearing protective masks, after the outbreak of the corona virus, were reflected on a stock price display outside of a brokerage firm in Tokyo.
By Tom Westbrook
SINGAPORE (Reuters) – Japanese stocks soared to six-month highs and the dollar came under pressure on Thursday as investors picked positive points from recent economic data and bet on China. and the US stick to their trade deal during the key weekend meeting.
MSCI̵7;s widest index of Asia-Pacific shares outside of Japan () rose 0.1%, while semiconductor manufacturers’ profits pushed Japan’s Nikkei index () high. more than 1.8% to the highest level in six months. ()
Rallies followed Wednesday’s gains in Europe and Wall Street – which left the S&P 500 () within record highs to close. But futures prices suggest the latest level of optimism could be lost during the European day.
Euro STOXX 50 futures () decreased 0.1%, futures () decreased 0.7% and S&P 500 futures () decreased 0.1%.
“People are looking at the half-filled glass and checking the water,” said currency analyst Moh Siong Sim of the Central Bank of Singapore.
During the past week, a sell-off in the US bond market, when investors announced the largest paper auction in 10 years, raised yields enough to trigger a sharp drop in gold prices as well as the yen. decreases as inflows from Japan enter.
At the same time, the number of new daily COVID-19 infections in the United States appears to have stabilized at around 55,000 and the spike in consumer prices last month seems to reinforce confidence in the recovery.
On Thursday, the US 10-year yield () fell to 0.6638%, gold
But the size and speed of the stock market is starting to cause some anxiety. Analysts at OCBC in Singapore fear that the stress index they released in April has been doing nothing but a drop since its inception.
OCBC economist Wellian Wiranto wrote: “The market tension … has dropped to such a low level that we began to wonder if we were missing anything.”
“With that in mind, we enlarge the US-China tensions that could begin to stand out more,” he said.
The next flash point could be on Saturday, when top officials meet to review progress on the Phase 1 trade deal.
White House economic adviser Larry Kudlow said this week the deal “is fine for now,” comments that helped the yuan hit a five-month high on Thursday show market confidence. .
However, China is lagging behind in its agricultural and energy commodity purchases, Bloomberg News reported on Wednesday, which is likely to spike other areas of the growing conflict between the two countries. in trade negotiations.
Elsewhere, the upbeat mood holds great pressure on the dollar. [FRX/]
Markets are still eagerly waiting for a breakthrough in controversy over the next US stimulus package. Small signs of progress are not helpful for the US economy and have helped the euro () rebound above $ 1.18 and pound
Australia is also a country standing outside the regional stock market, with the sale of giant Telstra (AX 🙂 shares after a drop in profits led to the index ().
South Korea’s Kospi () led gains in markets other than Japan, rising 0.7% to its highest level in two years.
Among commodities, oil mainly clung to steady overnight gains as US crude inventories fell sparking hope that fuel demand is recovering. [O/R]
Brent crude oil futures () fell 0.2% at $ 45.33 / barrel, while US crude oil () fell by the same amplitude to $ 42.60 / barrel.
The US weekly jobless claims are popping up at 12:30 GMT and investors expect a slight downward trend to continue.