(Bloomberg) — Asian stocks followed Wall Street gains after Friday’s better-than-expected U.S. jobs report. Oil prices fell after Israel announced it would withdraw some troops from Gaza.
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Japanese stocks led the region’s gains, with Australian and South Korean stocks also rising. Chinese stocks fell as sentiment weakened due to Shimao Group’s liquidation application.
While the U.S. jobs report “reiterates that the U.S. economy remains resilient in the face of high interest rates, focus now turns to this week’s U.S. CPI release, which will determine whether the recent rise in inflation is a trend.” It will be a touchstone.” Redmond Wong, market strategist at Saxo Capital Markets, said:
Oil fell more than 1% as traders monitored geopolitical tensions in the Middle East. Israel announced on Sunday that it was withdrawing some troops from southern Gaza, as Prime Minister Benjamin Netanyahu said victory was within reach. Still, Iran continues to prepare a response to Israel’s alleged attack on its Syrian consulate, while Hezbollah has warned it is ready for war.
“Concessions to move troops out of Gaza are far from a reason to downplay the continuing threat of a more direct conflict involving Iran,” said Vishnu Varasan, head of Asia economics and strategy at Mizuho Bank. . Much of that is due to geopolitics, which is amplifying supply shortages in other regions. ”
The People’s Bank of China kept the renminbi’s benchmark rate unchanged within its recent range in a daily setting on Monday, in a bid to stabilize the currency following the recent depreciation. The decision came as China’s financial markets reopened after a two-day holiday.
“What China discovered is that there was probably much more currency depreciation and selling pressure behind the scenes than they expected,” said Richard Franulovich, head of foreign exchange strategy at Westpac Bank. . It is a managed currency. ”
U.S. stock futures were little changed after the S&P 500 index and the tech-heavy Nasdaq both rose more than 1% following Friday’s jobs report.
U.S. Treasuries fell after the U.S. jobs report prompted traders to backtrack on expectations for the Federal Reserve to cut interest rates this year. The unemployment rate fell slightly to 3.8% in March, wages grew steadily, and the labor force participation rate rose, highlighting the strength of the labor market.
Focus will soon turn to the US March inflation figures, which will be released mid-week. Prices could remain above the Fed’s target band as first-quarter corporate earnings season gets into full swing with bank results from JPMorgan Chase & Co., Citigroup and others to be released on Friday.
New Zealand’s central bank, which was the first to raise interest rates in the post-COVID-19 tightening cycle, is expected to push back against easing measures when it announces its next policy decision on Wednesday. The European Central Bank is likely to keep its key interest rates unchanged as traders focus on a rate cut in the coming months.
Gold fell after closing at a record high last week as investors weighed strong U.S. jobs data as traders rolled back bets on the Federal Reserve cutting interest rates.
This week’s main events:
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Philippine interest rate decision, Monday
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Israeli interest rate decision, Monday
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German industrial production, Monday
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U.S. Treasury Secretary Janet Yellen meets with People’s Bank of China Governor Pan Gongsheng on Monday
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Australian consumer confidence Tuesday
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China’s comprehensive lending, money supply, new yuan lending, Tuesday
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New Zealand interest rate decision Wednesday
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Korean National Assembly Election Wednesday
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Brazilian consumer price index, Wednesday
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US FOMC Minutes, Wholesale Inventories, CPI, Wednesday
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Canadian interest rate decision Wednesday
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China PPI, CPI, Thursday
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Eurozone ECB interest rate decision Thursday
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New York Fed President John Williams and Boston Fed President Susan Collins speak Thursday
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Japan’s industrial production, Friday
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china trade friday
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South Korea’s unemployment rate, interest rate decision, Friday
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German CPI, French CPI, Spanish CPI, Friday
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Argentina Consumer Price Index, Friday
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Citigroup, JPMorgan and Wells Fargo are scheduled to report results on Friday.
The main movements in the market are:
stock
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S&P 500 futures were little changed as of 1:03 p.m. Tokyo time.
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Japan’s TOPIX rose 0.7%
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Australia’s S&P/ASX 200 rose 0.1%
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Hong Kong’s Hang Seng fell 0.1%
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The Shanghai Composite fell 0.4%.
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Euro Stoxx50 futures rose 0.1%
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Nasdaq 100 futures little changed
currency
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Bloomberg Dollar Spot Index little changed
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The euro was almost unchanged at $1.0835.
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The Japanese yen remained almost unchanged at 151.75 yen to the dollar.
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The offshore yuan was almost unchanged at 7.2467 yuan to the dollar.
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The Australian dollar was almost unchanged at US$0.6581.
cryptocurrency
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Bitcoin remains almost unchanged at $69,254.51
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Ether rose 0.3% to $3,413.2
bond
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The 10-year Treasury yield rose 1 basis point to 4.42%.
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Japan’s 10-year bond yield rose 1 basis point to 0.780%.
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The Australian 10-year bond yield rose eight basis points to 4.18%.
merchandise
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West Texas Intermediate crude oil fell 1.4% to $85.66 a barrel.
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Spot gold rose 0.9% to $2,349.94 an ounce.
This article was produced in partnership with Bloomberg Automation.
–With assistance from Matthew Burgess and Yongchang Chin.
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