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Global Bond Rally Breaks More Records, Stocks Drop: Markets Wrap
(Bloomberg) -- The powerful rally in sovereign bonds gathered pace on Friday, sending benchmarks to historic lows and stirring unease in equities in volatile trading.Thirty-year Treasury yields slid below 1.5% for the first time, Chinese 10-year yields hit levels unseen since 2002 and Australian ones saw all-time lows. An initial gain in futures on the S&P 500 Index was wiped out, signaling further losses after a 3.4% tumble Thursday. Japanese stocks fell more than 3% and Korean, Hong Kong and Australian shares over 2%. The yuan dropped, though Chinese equities continued to outperform peers. The yen extended gains to a fresh six-month high.“The focus is very much on the spread of coronavirus outside China and really markets aren’t going to settle until we see some sort of peak,” Susan Buckley, managing director for global liquid strategies at QIC Ltd., which manages more than A$80 billion ($53 billion), said on Bloomberg TV. “This is going to go on longer than most of us expected.”Global stocks are still up more than 2% for the week, helped by concerted efforts from global central banks and fiscal authorities to address the rapidly mounting economic damage from the coronavirus. Equities remain about 10% below the all-time high reached last month. The number of coronavirus cases worldwide approached 100,000 as the outbreak in the U.S. gathered pace, while China and South Korea both reported more infections and fatalities.With the focus on the virus and its impact, investors may pay less attention than usual to Friday’s U.S. payrolls report, forecast to show a solid gain for American jobs before any hit from the outbreak.Meantime in India, the rupee headed toward a record low and equities fell with bond yields after the central bank seized control of Yes Bank Ltd., the nation’s fourth-largest private lender. It’s placed strict limits on its operations as a rescue plan for the troubled lender is devised. Read more here.Elsewhere, oil extended its decline below $50 a barrel as uncertainty loomed over whether Russia would agree to OPEC’s proposal for a large production cut. Gold held its 2% overnight surge.These are the main moves in markets:StocksJapan’s Topix index lost 3.1% as of 2:17 p.m. in Tokyo.South Korea’s Kospi index retreated 2.3%.Futures on the S&P 500 Index fell 1.4%.Shanghai Composite fell 0.9%.Hang Seng Index down 2.2%.Australia’s S&P/ASX 200 Index lost 2.8%.Euro Stoxx 50 futures sank 2.5%.CurrenciesThe yen was at 105.81 per dollar, up 0.3%.The offshore yuan fell 0.3% to 9.9588 per dollar.The euro bought $1.1238.BondsThe yield on 10-year Treasuries fell 10 basis points to 0.81%.Australia’s 10-year yield retreated 11 basis points to 0.68%.CommoditiesWest Texas Intermediate crude fell 1.3% at $45.31 a barrel. Brent was at $49.35 a barrel.Gold added 0.4% to $1,679.37 an ounce.\--With assistance from Jonathan Ferro, Randall Jensen and Vildana Hajric.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, Joanna OssingerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
https://finance.yahoo.com/news/asia-stocks-slide-bonds-soar-215229216.html?.tsrc=rss
(Bloomberg) -- The powerful rally in sovereign bonds gathered pace on Friday, sending benchmarks to historic lows and stirring unease in equities in volatile trading.Thirty-year Treasury yields slid below 1.5% for the first time, Chinese 10-year yields hit levels unseen since 2002 and Australian ones saw all-time lows. An initial gain in futures on the S&P 500 Index was wiped out, signaling further losses after a 3.4% tumble Thursday. Japanese stocks fell more than 3% and Korean, Hong Kong and Australian shares over 2%. The yuan dropped, though Chinese equities continued to outperform peers. The yen extended gains to a fresh six-month high.“The focus is very much on the spread of coronavirus outside China and really markets aren’t going to settle until we see some sort of peak,” Susan Buckley, managing director for global liquid strategies at QIC Ltd., which manages more than A$80 billion ($53 billion), said on Bloomberg TV. “This is going to go on longer than most of us expected.”Global stocks are still up more than 2% for the week, helped by concerted efforts from global central banks and fiscal authorities to address the rapidly mounting economic damage from the coronavirus. Equities remain about 10% below the all-time high reached last month. The number of coronavirus cases worldwide approached 100,000 as the outbreak in the U.S. gathered pace, while China and South Korea both reported more infections and fatalities.With the focus on the virus and its impact, investors may pay less attention than usual to Friday’s U.S. payrolls report, forecast to show a solid gain for American jobs before any hit from the outbreak.Meantime in India, the rupee headed toward a record low and equities fell with bond yields after the central bank seized control of Yes Bank Ltd., the nation’s fourth-largest private lender. It’s placed strict limits on its operations as a rescue plan for the troubled lender is devised. Read more here.Elsewhere, oil extended its decline below $50 a barrel as uncertainty loomed over whether Russia would agree to OPEC’s proposal for a large production cut. Gold held its 2% overnight surge.These are the main moves in markets:StocksJapan’s Topix index lost 3.1% as of 2:17 p.m. in Tokyo.South Korea’s Kospi index retreated 2.3%.Futures on the S&P 500 Index fell 1.4%.Shanghai Composite fell 0.9%.Hang Seng Index down 2.2%.Australia’s S&P/ASX 200 Index lost 2.8%.Euro Stoxx 50 futures sank 2.5%.CurrenciesThe yen was at 105.81 per dollar, up 0.3%.The offshore yuan fell 0.3% to 9.9588 per dollar.The euro bought $1.1238.BondsThe yield on 10-year Treasuries fell 10 basis points to 0.81%.Australia’s 10-year yield retreated 11 basis points to 0.68%.CommoditiesWest Texas Intermediate crude fell 1.3% at $45.31 a barrel. Brent was at $49.35 a barrel.Gold added 0.4% to $1,679.37 an ounce.\--With assistance from Jonathan Ferro, Randall Jensen and Vildana Hajric.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, Joanna OssingerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
https://finance.yahoo.com/news/asia-stocks-slide-bonds-soar-215229216.html?.tsrc=rss
