Asian markets steady despite concerns over US economic data
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A US driver emptying his tanker truck of crude oil in Utah last week. Oil was steady yesterday, buoyed by optimism about improving US fuel demand and a weak dollar. However, reports also showed that US new home sales slid and consumer confidence fell slightly amid concerns over inflation and jobs.
PHOTO: AGENCE FRANCE-PRESSE
HONG KONG • Asian stocks were largely steady yesterday after softer economic data weighed on United States equities.
US treasuries trimmed a rally spurred by Federal Reserve officials again predicting transitory price pressures.
Shares fluctuated in Japan before closing higher for a fifth consecutive session, with the Nikkei 225 index up 0.31 per cent.
Hong Kong shares closed at a near four-week high yesterday, led by technology and property stocks as the Hang Seng Index ended 0.88 per cent higher.
Chinese equities edged up after surging the most since last July on Tuesday. China's main Shanghai Composite Index closed up 0.34 per cent. Singapore was closed for a public holiday.
US equity contracts rose and Nasdaq 100 futures outperformed, after the S&P 500 slipped and the tech-heavy gauge made a small gain.
Reports showed US new home sales slid and consumer confidence fell slightly amid concerns over inflation and jobs.
New Zealand's dollar jumped after the central bank projected that interest rates may start to rise in the second half of next year if the economy continues to recover from the pandemic.
Treasury yields remain below this year's peaks, with more Fed officials joining a chorus downplaying price pressures.
A dollar gauge touched the lowest level since early January.
Oil was steady and gold erased this year's losses.
Bitcoin climbed towards US$40,000 (S$52,900) in a partial recovery from last week's crypto rout.
Signs of quickening inflation are giving investors pause for thought as they consider the outlook for the exceptional stimulus buoying markets.
Federal Reserve vice-chair Richard Clarida said price pressures in the US would largely be transitory.
He added officials may be ready to begin discussing how to taper asset purchases "in upcoming meetings", echoing recent Fed minutes.
"What we keep hearing from the Fed is that they're going to take a very different approach to inflation this time around," Invesco chief global market strategist Kristina Hooper said on Bloomberg TV.
"The Fed is likely to let the punch bowl stay out a lot longer. The big fear about inflation is that the Fed would act."
Oil was also steady yesterday, supported by optimism about improving US fuel demand and a weak dollar.
Brent rose 0.2 per cent to US$68.78 a barrel yesterday morning, and US West Texas Intermediate crude was down 0.1 per cent, at US$66.02 a barrel.
BLOOMBERG, REUTERS
