TOKYO (BLOOMBERG) - Asian stocks saw another quiet year-end session on Thursday (Dec 26), sitting on an advance of almost 9 per cent for the quarter thanks to ebbing concerns about United States-China trade tensions and expectations of a global economic pickup in 2020.
Shares opened higher in Tokyo and flat in Seoul, without a cue from Wall Street overnight given the Christmas holiday. US futures were little changed, as were Treasuries, with 10-year yields remaining above 1.9 per cent. Crude oil is holding above US$61 a barrel in New York. The Japanese yen is stuck between 109 and 110, and China's yuan is around 7.
Jobless claims in the US Thursday are one of the few points of interest for traders on Boxing Day, with a number of markets still closed. In Asia, Hong Kong and Australia are among locations on holiday on Thursday.
The MSCI Asia Pacific Index is heading for an advance of just under 9 per cent for the quarter, after retreating in the third quarter and being little changed in April-to-June. As attention turns toward January, investors will be looking for the US and China consummating their phase-one trade agreement, along with signs of a trough in manufacturing after some poor purchasing manager indexes for November.
"Money supply is rising faster than the economy is expanding, which is providing a deluge of liquidity for institutional investors to gorge on," Stephen Innes, chief Asia market strategist at Axitrader, wrote in a note Thursday, noting the expanding balance sheets at central banks including the Federal Reserve.
"When you combine this cash bonanza with the probable economic bounce from a tariff reversal, it gives more than reasonable cause to own risk assets."
Here are some key gauges for markets:
Stocks
- Japan's Topix index was up 0.4 per cent as of 10.02 am in Tokyo.
- South Korea's Kospi Index was little changed.
- Futures on the S&P 500 Index were up 0.1 per cent.
- The MSCI Asia Pacific Index ticked up 0.1 per cent, and is up almost 16 per cent for the year.
Currencies
- Japan's yen was at 109.53 per US dollar.
- The euro was at US$1.1090.
- China's offshore yuan was at 6.9935 per US dollar.
The pound sterling was at US$1.2975.
Bonds
- Yields on 10-year Treasuries were at 1.91 per cent.
- Japan's 10-year yields were just under 0 per cent.
Commodities
- West Texas Intermediate crude was at US$61.23.
- Gold futures were at at US$1,498.70 an ounce.
