By Hideyuki Sano
TOKYO (Reuters) – Asian stocks fell on Friday, but global stocks held near an all-time high after strong US economic data and a commitment from the Federal Reserve to continue supporting the economy fueled risk appetite. of investors.
MSCI’s broader Asia-Pacific equity index outside of Japan fell 0.5% and both Japan and China fell ahead of a long weekend. Both markets will remain closed until Wednesday.
It fell 0.4% while China’s CSI 300 lost 0.5% in early trading.
MSCI’s broader gauge of global stocks covering 50 markets, ACWI, changed little a day after it hit an all-time high, extending its monthly gains to 5.1%.
On Wall Street, it also closed at an all-time high, while hitting an intraday record before cutting some gains.
For both ACWI and S & P500, analysts now expect earnings in the next 12 months to recover above their pre-pandemic levels.
Amazon (NASDAQ 🙂 reported stellar results Thursday night, raising its shares 2.4% in an after-hours trade.
Thursday’s data also showed US economic growth accelerating in the first quarter, driven by massive government aid to homes and businesses.
New York City aims to “fully reopen” on July 1 after more than a year of closures and capacity restrictions, Mayor Bill de Blasio said, bolstering hopes for a recovery in the battered service sector.
Fed Chairman Jerome Powell said Wednesday that “the time is not yet” to begin discussing any policy changes after the US central bank dropped interest rates and its bond-buying program. unchanged, despite having a more optimistic view of the country’s economic recovery.
It rose to 1,690%, its highest level in more than two weeks, and last time it stood at 1,641%.
“For now, we are likely to see strong economic data from the US. And that means we need to be wary of the further increase in US bond and dollar / yen yields,” said Toshiya Nakamura, Director of Forex trading. from Mitsubishi Trust Bank. .
In the currency market, the yen was indifferent at 108.72 to the dollar, having hit a two-week low of 109.22 as higher US bond yields helped the dollar.
The risk-positive mood saw the euro extending its bull run to a two-month high of $ 1.2150 in the previous session and last time it stood at $ 1.2117. With gains of 3.3% so far this month, it is on track for its biggest monthly gain in 9 months.
The Canadian dollar extended its gains to a three-year high of Cdn $ 1,22715 per US unit, driven by the gradual reduction of its bond purchase program by the Bank of Canada and higher commodities, including oil and lumber. .
Oil prices held near six-week highs as strong US economic data, a weak dollar and expected recovery in demand outweighed concerns about higher COVID-19 cases in Brazil and India. .
It fell 0.4% to $ 68.30 a barrel in Asia, after peaking at $ 68.95 on Thursday, while the US West Texas Intermediate (WTI) lost 0.3%. at $ 64.80 a barrel.
“Strong US data is supporting the market. But on the other hand, given that oil producers have the ability to further boost production, there will be resistance of around $ 65 for WTI and $ 70 for Brent, “said Tatsufumi Okoshi, senior commodities strategist at Nomura Securities.