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Asia Primed for Stock Rally But Iran Worry Lingers: Markets Wrap
(Bloomberg) -- Stocks in Asia looked set to follow a rally in American equities after the U.S. and Iran appeared to be stepping back from a deeper military conflict. Havens from the yen to Treasuries retreated along with oil.Australian shares opened higher along with bond yields and futures pointed to equities in Tokyo and Hong Kong opening firmer, as risk appetite spread to Asia. The S&P 500 Index rose with 10-year Treasury yields as President Donald Trump’s measured remarks on Iran suggested tensions were easing. Risk assets did pare gains late Wednesday after reports of a rocket attack in Baghdad, showing traders remain wary of developments.“This is not really increasing hostility per se,” Mona Mahajan, an investment strategist at Allianz Global Investors, told Bloomberg TV. “More broadly the backdrop remains benign for equities -- low rates, low inflation and low growth -- a mild Goldilocks in many ways.”With geopolitical risks looming over markets, investors are betting a conflict can be contained. Equities tumbled early Wednesday in Asia after Iran launched a retaliatory attack on U.S. military bases in Iraq but then sharp reversals followed as the two countries appeared to suggest a halt in hostilities.On Friday, traders will get the latest read on the health of the U.S. economy with the nonfarm jobs report. That comes after a gauge of private employment beat expectations Wednesday.Here are some events to watch for this week:Federal Reserve officials Richard Clarida, John Williams, James Bullard and Charles Evans speak on Thursday.The U.S. monthly non-farm employment report is due Friday.These are moves in major markets:StocksFutures on the S&P 500 Index were flat as of 8:05 a.m. in Tokyo. The underlying gauge advanced 0.5% on Wednesday.Australia’s S&P/ASX 200 Index rose 0.5%.Futures on Japan’s Nikkei 225 gained 1.5%.Hang Seng Index futures added 1.3%.CurrenciesThe yen was at 109.09 per dollar after a 0.6% decline.The offshore yuan was at 6.9381 per dollar.The euro bought $1.107.The Bloomberg Dollar Spot Index added 0.2% on Wednesday.BondsThe yield on 10-year Treasuries rose more than five basis points to 1.87%.Australia’s 10-year yield advanced five basis points to 1.23%.CommoditiesWest Texas Intermediate crude added 0.5% to $59.90 a barrel after a 4.9% slide on Wednesday.Gold held at $1,555.72 an ounce.To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.netTo contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Andreea PapucFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
https://finance.yahoo.com/news/asia-primed-stock-rally-iran-214626489.html?.tsrc=rss
(Bloomberg) -- Stocks in Asia looked set to follow a rally in American equities after the U.S. and Iran appeared to be stepping back from a deeper military conflict. Havens from the yen to Treasuries retreated along with oil.Australian shares opened higher along with bond yields and futures pointed to equities in Tokyo and Hong Kong opening firmer, as risk appetite spread to Asia. The S&P 500 Index rose with 10-year Treasury yields as President Donald Trump’s measured remarks on Iran suggested tensions were easing. Risk assets did pare gains late Wednesday after reports of a rocket attack in Baghdad, showing traders remain wary of developments.“This is not really increasing hostility per se,” Mona Mahajan, an investment strategist at Allianz Global Investors, told Bloomberg TV. “More broadly the backdrop remains benign for equities -- low rates, low inflation and low growth -- a mild Goldilocks in many ways.”With geopolitical risks looming over markets, investors are betting a conflict can be contained. Equities tumbled early Wednesday in Asia after Iran launched a retaliatory attack on U.S. military bases in Iraq but then sharp reversals followed as the two countries appeared to suggest a halt in hostilities.On Friday, traders will get the latest read on the health of the U.S. economy with the nonfarm jobs report. That comes after a gauge of private employment beat expectations Wednesday.Here are some events to watch for this week:Federal Reserve officials Richard Clarida, John Williams, James Bullard and Charles Evans speak on Thursday.The U.S. monthly non-farm employment report is due Friday.These are moves in major markets:StocksFutures on the S&P 500 Index were flat as of 8:05 a.m. in Tokyo. The underlying gauge advanced 0.5% on Wednesday.Australia’s S&P/ASX 200 Index rose 0.5%.Futures on Japan’s Nikkei 225 gained 1.5%.Hang Seng Index futures added 1.3%.CurrenciesThe yen was at 109.09 per dollar after a 0.6% decline.The offshore yuan was at 6.9381 per dollar.The euro bought $1.107.The Bloomberg Dollar Spot Index added 0.2% on Wednesday.BondsThe yield on 10-year Treasuries rose more than five basis points to 1.87%.Australia’s 10-year yield advanced five basis points to 1.23%.CommoditiesWest Texas Intermediate crude added 0.5% to $59.90 a barrel after a 4.9% slide on Wednesday.Gold held at $1,555.72 an ounce.To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.netTo contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Andreea PapucFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
https://finance.yahoo.com/news/asia-primed-stock-rally-iran-214626489.html?.tsrc=rss
