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Asian Stocks Steady; Oil Slips Amid OPEC+ Dispute: Markets Wrap

(Bloomberg) — Asian stocks were steady early Monday after U.S. shares climbed further on speculation the Federal Reserve has scope to continue providing substantial stimulus support. Oil edged lower amid an OPEC+ spat.

Japanese shares slipped while South Korea and Australia inched up. The S&P 500 reached a record for a seventh day Friday after a U.S. jobs report signaled the economy is gaining steam but not at a pace that would prompt the central bank to taper stimulus quickly. U.S. equity contracts were stable. U.S. stock and bond markets are closed for the July 4 Independence Day holiday.

Treasuries gained and the dollar dipped after the jobs report was seen as supporting the Fed’s accommodative stance. The greenback clawed back some of the losses Monday. Investors are awaiting the Federal Open Market Committee minutes later this week for clues on the policy outlook.

Oil was around $75 a barrel amid an OPEC+ dispute that cast doubt on a deal that may temper prices. Saudi Arabia and the United Arab Emirates are at odds.

While the U.S. jobs report eased concerns about the Fed’s hawkish pivot last month, central banks around the world are beginning to pull back from from the emergency stimulus they deployed to fight the pandemic-driven global recession. For instance, the Reserve Bank of Australia is expected to pare back some stimulus at its Tuesday meeting despite ongoing curbs against a recent Covid-19 flareup.

“Markets are priced for the continuation of a scenario that could not be better constructed,” Chris Iggo, chief investment officer for core investments at AXA Investment Managers, wrote in a note. “Investors are living with risks that are seen to be manageable while growth and the technical set-up of our financial system is rewarding capital allocated to risk.”

Elsewhere, China’s cyberspace regulator ordered app stores to remove Didi Chuxing just days after the ride-hailing giant’s U.S. initial public offering. China’s stock market open will be in focus in case the move causes jitters by again highlighting Beijing’s push to curb the influence of the nation’s largest technology companies.

Here are some events to watch this week:

Reserve Bank of Australia policy decision TuesdayFOMC minutes WednesdayThe Group of 20 finance ministers and central bankers meet in Venice on FridayChina PPI and CPI data released on Friday

These are some of the main moves in markets:

Stocks

S&P 500 futures dipped 0.1% as of 9:23 a.m. in Tokyo. The S&P 500 rose 0.8% FridayNasdaq 100 futures were little changed. The Nasdaq 100 rose 1.2%Japan’s Topix index fell 0.4%Australia’s S&P/ASX 200 Index added 0.3%South Korea’s Kospi index rose 0.4%Hang Seng futures rose 0.6% earlier

Currencies

The Japanese yen was at 111.16 per dollarThe offshore yuan was at 6.4721 per dollarThe Bloomberg Dollar Spot Index increased 0.1%The euro traded at $1.1859

Bonds

The yield on 10-year Treasuries declined three basis points to 1.42% Friday; futures were futures little changedAustralia’s 10-year bond yield dipped four basis points to 1.43%

Commodities

West Texas Intermediate crude shed 0.2% to $75.01 a barrelGold was at $1,785.19 an ounce, down 0.1%

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Read More: Asian Stocks Steady; Oil Slips Amid OPEC+ Dispute: Markets Wrap

2021-07-04 19:22:30

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