(Bloomberg) — Asian stocks advanced for a sixth-straight day as a surge in US tech shares and China’s reopening helped investors shrug off mixed data on the American economy.
Most Read from Bloomberg
The moves are set to extend the weekly run of gains for the MSCI Asia Pacific Index to five as it heads for the highest close since April. Hong Kong-listed technology stocks were among the regional leaders on Friday, as they have been since around October.
A report that Japan and the Netherlands are poised to join the US in limiting China’s access to advanced semiconductor machinery tempered the gains, pulling stocks off their intraday highs. Mainland China remains closed for the Lunar New Year holiday.
Investors are also focused stocks linked to Indian billionaire Gautam Adani, with the companies expected to provide a detailed response to a short seller’s report that they labeled as “bogus.”
Treasuries inched lower in Asia and Australian bonds slid, with the nation’s 10-year yields rising more than five basis points to 3.56%. The Aussie dollar held gains from Thursday, while the yen strengthened after weakening 0.5% the day before.
The yen’s advance came after Tokyo inflation exceeded estimates and rose to the highest level since 1981. Quickly rising prices will add pressure on the Bank of Japan to scale back its stimulus after it redoubled its efforts to depress bond yields earlier this month.
Japan’s 10-year bond yield rose one basis point, to 0.47%, as it edges toward the BOJ’s new ceiling of 0.5%.
“The latest Tokyo inflation report underscores rising price pressure and that could continue to drive speculation of another monetary policy adjustment by the Bank of Japan and further Japanese yen strength,” said Fiona Lim, senior currency analyst at Malayan Banking Bhd. in Singapore.
Asia’s developments followed mixed US economic data Thursday, with gross domestic product rising at a faster-than-forecast pace in the December quarter, but accompanied by signs of slowing underlying demand as rate hikes growth. A surprise drop in initial jobless claims also pointed to resilience in the labor market.
The S&P 500 still managed to close at the highest level in more than a month, reflecting a jump in tech stocks. The Nasdaq 100 rose 2% to the highest level since September, led by an 11% gain for Tesla Inc. as Elon Musk teased potential for the carmaker to produce 2 million vehicles this year.
US futures went a different direction during Asian trading, in part reflecting Intel Corp. late in the day giving of the gloomiest quarterly forecasts in its history after a personal-computer slump ravaged its business. Intel tumbled in late trading.
Elsewhere in markets, oil was set to end the week little changed as concerns of an economic slowdown were tempered by optimism over Chinese demand. Gold slid.
Key events:
-
American Express, Charter Communications, Chevron, HCA Healthcare to report results Friday
-
US personal income/spending, PCE deflator, University of Michigan consumer sentiment, pending home sales, Friday
Some of the main moves in markets:
Stocks
-
S&P 500 futures fell 0.3% as of 1:04 pm Tokyo time. The S&P 500 rose 1.1%
-
Nasdaq 100 futures fell 0.7%. The Nasdaq 100 rose 2%
-
Japan’s Topix was little changed
-
Australia’s S&P/ASX 200 rose 0.4%
-
Hong Kong’s Hang Seng was little changed
-
The Shanghai Composite rose 0.8%
-
Euro Stoxx 50 futures rose 0.2%
Currencies
-
The Bloomberg Dollar Spot Index rose 0.1%
-
The euro fell 0.2% to $1.0871
-
The Japanese yen rose 0.2% to 130.02 per dollar
-
The offshore yuan fell 0.3% to 6.7566 per dollar
Cryptocurrencies
-
Bitcoin fell 1.3% to $22,790.28
-
Ether fell 2.3% to $1,565.98
Bonds
-
The yield on 10-year Treasuries advanced three basis points to 3.53%
-
Japan’s 10-year yield rose one basis point to 0.47%
-
Australia’s 10-year yield advanced six basis points to 3.57%
Commodities
-
West Texas Intermediate crude rose 0.4% to $81.36 a barrel
-
Spot gold fell 0.3% to $1,924.07 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Richard Henderson and Matthew Burgess.
Most Read from Bloomberg Businessweek
©2023 Bloomberg LP