(Bloomberg) — Most Asian stocks rose Tuesday and U.S. equity futures were steady following an all-time high on Wall Street, as traders evaluated the resilience of the global recovery to a record spike in coronavirus cases.
Japan led regional gains but a Hong Kong technology gauge missed out as tightening oversight of overseas share sales by Chinese authorities provided a reminder of Beijing’s regulatory zeal. Volumes were lower than average in some markets due to the holiday season.
U.S. futures fluctuated and European contracts slipped following the S&P 500’s 69th record close this year. The U.S. 10-year Treasury yield and the dollar were little changed. Oil pushed higher.
A tidal wave of omicron infections took global Covid-19 cases to a daily all-time high on Monday. The surge has disrupted global reopening and could squeeze hospitals. At the same time, investors are taking comfort from studies suggesting omicron, while highly contagious, causes less severe illness.
Global shares are on course for a third year of double-digit returns, powered by the U.S. surge. The climb has overcome coronavirus waves and a shift by some key central banks toward tighter monetary policy to fight high inflation. Concerns remain that those variables could spur heightened volatility.
“The remedies that we put in place to counter the Covid recessions, they were so substantial, we had massive stimulus,” Sandip Bhagat, chief investment officer of Whittier Trust, said on Bloomberg Television. “We’ll be left with a legacy of those policy responses well into the future” and stocks can continue advancing, he said.
In China, the latest escalation in Beijing’s wider regulatory clampdown on private industry casts more doubt over the prospects for overseas initial public offerings, which had proceeded virtually unchecked for two decades.
Meanwhile, the People’s Bank of China — which on the weekend vowed more economic support — boosted a short-term liquidity injection.
In cryptocurrencies, Bitcoin gave up a recent advance to slide below the $50,000 level, suggesting investors in the riskiest corners of global markets are becoming more circumspect.
What to watch this week:
- U.S. initial jobless claims, Thursday
For more market analysis, read our MLIV blog.
Some of the main moves in markets:
Stocks
- S&P 500 futures fell 0.1% as of 7:05 a.m. in London. The S&P 500 rose 1.4%
- Nasdaq 100 futures were flat. The Nasdaq 100 rose 1.6%
- Japan’s Topix index climbed 1.4%
- South Korea’s Kospi index added 0.7%
- China’s Shanghai Composite index rose 0.4%
- Hong Kong’s Hang Seng index increased 0.1%
- Euro Stoxx 50 futures shed 0.2%
Currencies
- The Bloomberg Dollar Spot Index was steady
- The euro was at $1.1326
- The Japanese yen was at 114.88 per dollar
- The offshore yuan was at 6.3744 per dollar
Bonds
- The yield on 10-year U.S. Treasuries held at about 1.47%
Commodities
- West Texas Intermediate crude rose 0.5% to $75.91 a barrel
- Gold was at $1,815.55 an ounce, up 0.2%
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