(Bloomberg) – Asian stocks were mixed on Thursday following another Wall Street record of light volumes in the final days of the year. Treasury yields reduced an advance.
China’s CSI 300 index climbed on expectations of further measures to support economic growth amid extended some personal income tax relief and calls for policy easing. In Hong Kong, artificial intelligence giant SenseTime Group Inc. jumped on its first day of listing.
MSCI Inc.’s overall Asia-Pacific index declined slightly. US equity futures wavered but European contracts climbed. The S&P 500 made a gain to hit its 70th year-end record on Wednesday.
The 10-year Treasury yield reduced its advance but remained above its 50-day moving average. Australia’s 10-year yield also rose, as global sovereign bonds fell. A dollar gauge rose. Crude oil was stable.
As the year draws to a close, investors are considering the implications of the rapidly spreading variant of the omicron coronavirus, declining stimulus measures and high inflation fueled by supply chain bottlenecks. The key questions are whether Treasury yields will rise and what impetus remains in the bull market for equities.
“Despite global increases in Covid cases, markets are reflecting the new reality that Covid is here to stay although more on our terms than its own,” said Kevin Philip, Managing Director of Bel Air Investment Advisors, in an e- mail. Next year, “we are facing a world less influenced by Covid and a return to normalcy,” he added.
Chinese authorities have renewed their commitment to a zero tolerance approach to Covid-19 as they tackle a protracted outbreak in the western city of Xi’an. Micron Technology Inc. said that part of the computer’s memory output will be affected by the lockdown there.
China’s battered real estate developers and regulatory crackdown are back on the agenda for 2022.
Developer Kaisa Group Holdings Ltd. faces an initial deadline for coupon payments totaling $ 154 million on two-dollar bonds on Thursday. A unit of China Evergrande Group is considering reducing its stake in China Calxon Group Co. after failing to repay its debt on time.
Meanwhile, Alibaba Group Holding Ltd. is in talks about a possible sale of its stake in Weibo Corp., a Twitter-like social media service, to a state-owned Chinese conglomerate. Beijing is preparing to limit the influence of Chinese tech giants in the media sphere. Alibaba shares were stable in Hong Kong.
Elsewhere, Bitcoin extended its December retreat and was trading around $ 47,000.
What to watch this week:
- Initial jobless claims in the United States, Thursday
For more market analysis, read our MLIV blog.
Some of the main movements in the markets:
- S&P 500 futures were flat at 7:05 am in London. The S&P 500 rose 0.1%
- Futures on the Nasdaq 100 slipped 0.1%. The Nasdaq 100 has changed little
- Japan’s Topix index fell 0.3%
- Australian S & P / ASX 200 index rose 0.1%
- South Korea’s Kospi Index Sheds 0.5%
- Hong Kong’s Hang Seng Index rose 0.2%
- China’s Shanghai Composite Index rose 0.6%
- Euro Stoxx 50 futures rose 0.2%
- The Japanese yen was at 115.14 per dollar, down 0.2%
- The offshore yuan was at 6.3676 per dollar
- Bloomberg Dollar Spot Index climbs 0.2%
- The euro was at $ 1.1319
- The yield on 10-year Treasuries fell by about one basis point to 1.54%
- Australian 10-year yield rose 10 basis points to 1.63%
- West Texas Intermediate crude was at $ 76.60 a barrel, up 0.1%
- Gold was at $ 1,798.35 an ounce, down 0.4%
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