Asian stocks fall as US futures battle and bitcoin keeps sliding
MSCI Inc’s gauge of Asia-Pacific shares hits the lowest since June 2020 amid drops in Japan and Hong Kong
Asian stocks fell on Monday and US equity futures erased a climb as tightening monetary policy kept sentiment in check.
MSCI Inc’s gauge of Asia-Pacific shares hit the lowest since June 2020 amid drops in Japan and Hong Kong and mixed performance in China, where banks kept their main lending rates unchanged.
S&P 500 contracts turned lower, while those for the Nadsaq 100 reversed a gain of more than 1%.
Bitcoin slid anew, sinking back below the closely watched $20,000 mark. A volatile crypto slump has become emblematic of the pressure on a range of assets from sharp Federal Reserve interest-rate hikes to tame high inflation.
The dollar was mixed against key peers. Crude oil added to a near-7% Friday plunge. Treasury futures advanced — there’s no cash trading as Wall Street is closed Monday for a holiday.
Markets are set to remain on edge amid elevated price pressures and concern that monetary tightening in a range of nations portends more losses.
“Data over the coming months will indeed point to the need for a greater degree of tightening, and market prices will need to adjust,” Sonal Desai, chief investment officer at Franklin Templeton Fixed Income, wrote in a note.
In the latest Fed commentary, governor Christopher Waller said he would support another 75-basis-point rate increase at the central bank’s July meeting should economic data come in as he expects.
Bank of Cleveland Fed president Loretta Mester said the risk of a US recession is increasing, adding it will take several years to return to the 2% inflation goal. Fed chair Jerome Powell is due to appear before US lawmakers this week.
Some of the main moves in markets:
- S&P 500 futures fell 0.1% at 3.48am. The S&P 500 rose 0.2% on Friday.
- Nasdaq 100 futures rose 0.1%. The Nasdaq 100 rose 1.2% Friday.
- Japan’s topix index fell 1.1%.
- Australia’s S&P/ASX 200 index fell 0.6%.
- South Korea’s kospi fell 2.3%.
- Hang seng index fell 0.4%.
- Shanghai composite index was little changed.
- Euro Stoxx 50 futures fell 0.4%.
- The Bloomberg dollar spot index was steady.
- The euro was at $1.0496.
- The Japanese yen was at 135.07 per dollar.
- The offshore yuan was at 6.7088 per dollar.
- The yield on 10-year Treasuries advanced three basis points to 3.23% Friday.
- Australia’s 10-year bond yield fell 10 basis points to 4.04%.
- West Texas Intermediate crude fell 0.5% to $109.03 a barrel.
- Gold was at $1,839.61 an ounce.
Bloomberg News. More stories like this are available on bloomberg.com
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