(Bloomberg) — Asian stocks may get a boost Friday from a surge in U.S.-listed Chinese shares. American equities dipped from a record high and Treasuries climbed in thin year-end trading.
Australian stocks edged down but futures pointed higher for Hong Kong. Both markets will shut early, while Japan is among a number closed all day ahead of the New Year. U.S. contracts fluctuated after Wall Street slipped.
The Nasdaq Golden Dragon China Index jumped 9.4% on Thursday, the most since 2008. The gauge is still down more than 40% for 2021.
Treasury yields retreated, the dollar was steady and crude oil slipped. Bitcoin held its December losses.
Global equities are closing out a strong year, driven by a surge in the U.S. while Asia lagged partly because of weakness in Chinese shares on regulatory curbs and a slowing economy.
Bond investors are nursing losses as many central banks move toward tighter monetary settings to fight inflation. How the virus and those policy shifts shape global economic reopening from the health crisis are key for the outlook.
“As we look forward to 2022 the gains are probably going to be more modest than they’ve been in the past year or so” partly given where valuations are now, Jason Pride, chief investment officer for private wealth at Glenmede, said on Bloomberg Television. But there’s reason for optimism too since “we’re still in the recovery from the pandemic,” he added.
The latest U.S. data showed jobless claims unexpectedly fell last week while continuing claims dropped to the lowest level since March of last year. A measure of Chicago business activity rose in December more than economists predicted.
Traders are continuing to monitor China’s struggling property developers, including some initial coupon payment deadlines for Kaisa Group Holdings Ltd. dollar bonds.
The spotlight was also on talks by telephone between U.S. President Joe Biden and Russian President Vladimir Putin. The U.S. and its allies have raised alarm over a potential Russian invasion of Ukraine.
For more market analysis, read our MLIV blog.
Some of the main moves in markets:
Stocks
- S&P 500 futures were steady as of 8:15 a.m. in Tokyo. The S&P 500 fell 0.3%
- Nasdaq 100 futures rose 0.1%. The Nasdaq 100 fell 0.4%
- Australia’s S&P/ASX 200 index fell 0.1%
- Hang Seng futures rose 1.7% earlier
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was at $1.1326
- The Japanese yen was at 115.05 per dollar
- The offshore yuan was at 6.3767 per dollar
Bonds
- The yield on 10-year Treasuries declined four basis points to 1.51%
- Australia’s 10-year bond yield rose one basis point to 1.64%
Commodities
- West Texas Intermediate crude fell 0.6% to $76.52 a barrel
- Gold was at $1,814.70 an ounce
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