Hong Kong Stocks Fall as Asia Enters Holiday Mode: Markets Wrap

(Bloomberg) -- European futures slipped, as investors remained cautious ahead of US inflation data and Asia settled into holiday mode for the Lunar New Year. US stock-index futures inched lower. The MSCI Asia Pacific Index fell 0.2%, though was still on track for its third weekly gain amid a flurry of stimulus announcements as China attempted to stem an equity market slump. Hong Kong’s Hang Seng Index and a measure of Chinese equities in Hong Kong dropped ahead of early closures, though both gauges are higher for the week thanks to a big gain on Tuesday on optimism around state support. “What we need in China in terms of catalysts is a large coordinated fiscal easing targeting demand,” Florian Neto, head of Asia multi-asset at Amundi Hong Kong Ltd., said on Bloomberg Television. “What we have is market stabilization, but it’s not tackling the fundamental issues in the Chinese economy.” Markets were shut for the holiday in mainland China, Taiwan, South Korea, Indonesia, the Philippines and Vietnam. China’s Property Crisis Is Starting to Ripple Across the World Australian equities were little changed and Japanese stocks were mixed, with the weaker yen offering some support. The currency steadied after slipping 0.8% against the greenback on Thursday, in the wake of comments from a Bank of Japan deputy governor suggesting the central bank will be in no rush to shift its easy policy settings. An index of the dollar was steady ahead of the annual revisions to monthly US inflation data, after last year’s adjustments cast doubt on the Federal Reserve’s progress in taming consumer prices. “CPI revisions could throw cold water on the recent good inflation numbers — but this is a wonky number,” said Andrew Brenner at NatAlliance Securities. “We think the next move comes off the CPI number next Tuesday.” Japan-listed SoftBank Group Corp. rallied 8.7% after exceeding net income forecasts in its latest quarterly results, and from further gains for Arm Holdings Plc, in which it owns a stake. Nissan shares slid 12% after the company missed profit estimates. Listen to the Big Take podcast on iHeart, Apple Podcasts and Spotify. Read the transcript here. New Zealand yields and the currency climbed after ANZ Bank New Zealand Ltd. forecast that the central bank will raise interest rates twice more this year. Treasuries were little changed in Asian trading after a decline on Thursday. Selling came even after the US government sold $25 billion in 30-year bonds at a lower-than-expected yield, in a sign of healthy demand. The 10-year yield rose three basis points Thursday and has added 13 basis points this week as investors adjust interest rate forecasts on strong economic data and comments from central bank policymakers. Bitcoin’s Advance Bitcoin reached a one-month high above $46,000. “Analyzing 10-day returns after the Lunar New Year, Bitcoin has only experienced negative returns twice since 2011 and none since 2014, boasting an average return of over 10%,” said Sean Farrell, head of digital-asset strategy at Fundstrat, in a note Thursday. Key events this week: US CPI revisions, Friday Germany CPI, Friday President Joe Biden hosts German Chancellor Olaf Scholz at the White House, Friday Some of the main moves in markets: Stocks S&P 500 futures were little changed as of 6:20 a.m. London time Hang Seng futures fell 1.1% Nikkei 225 futures (OSE) were little changed S&P/ASX 200 futures were unchanged Euro Stoxx 50 futures were little changed Nasdaq 100 futures were little changed Currencies The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.0771 The Japanese yen was little changed at 149.40 per dollar The offshore yuan was unchanged at 7.2135 per dollar The Australian dollar was little changed at $0.6497 The British pound was unchanged at $1.2617 Cryptocurrencies Bitcoin rose 1.9% to $46,190.96 Ether rose 1% to $2,449.48 Bonds The yield on 10-year Treasuries was little changed at 4.15% Japan’s 10-year yield advanced two basis points to 0.720% Australia’s 10-year yield advanced two basis points to 4.13% Commodities West Texas Intermediate crude was little changed Spot gold was little changed This story was produced with the assistance of Bloomberg Automation. --With assistance from Abhishek Vishnoi. ©2024 Bloomberg L.P.

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