(Bloomberg) — Asian stocks are set for a mixed start Thursday as traders await more clues about the regulatory outlook in China as well as the Federal Reserve’s approach to paring stimulus.
Futures rose in Japan but dipped in Australia and Hong Kong. U.S. contracts fluctuated after the S&P 500 and Nasdaq 100 edged up to records. The 10-year U.S. Treasury yield climbed ahead of the Jackson Hole meeting, which may offer fresh insight on how the Fed intends to scale back bond purchases. The dollar was little changed.
The rebound in Chinese stocks listed in the U.S. fizzled. Beijing’s sweeping crackdown on private industries is continuing to color sentiment and complicate the outlook for the world’s second-largest economy.
Crude oil held around $68 a barrel after a rally this week on bets that demand will weather the delta virus variant’s impact on the economic recovery.
Views are split on whether Chairman Jerome Powell’s speech Friday at Jackson Hole will provide a clearer guide on when and how the Fed will scale back its emergency support. While the ongoing economic rebound and elevated inflation add to the case for starting policy normalization, the fast-spreading delta strain threatens a slower pace of recovery than some had expected.
“The U.S. stock market remains excessively bullish, but still ripe for its first 5% pullback in almost a year as a potential peak in stimulus is here,” Edward Moya, senior market analyst at Oanda, wrote in a note. Powell’s “speech will likely emphasize the economic recovery is well past the crisis and that they will shortly announce they are ready to taper asset purchases,” Moya said.
The latest U.S. data showed orders placed with factories for business equipment unexpectedly stalled in July, marking a pause in a months-long buildup in capital investment.
Elsewhere, gold fell below $1,800 and Bitcoin traded around $49,000.
Here are some events to watch this week:
Bank of Korea policy decision; briefing by Governor Lee Ju-yeol ThursdayFed officials attend the Jackson Hole Economic Policy Symposium from Thursday through SaturdayU.S. GDP, initial jobless claims ThursdayJuly U.S. personal income and spending data Friday. Investors will scrutinize the personal consumption expenditures price index, an inflation measure closely watched by the Fed.
For more market analysis read our MLIV blog.
Some of the main moves in markets:
S&P 500 futures were flat as of 7:01 a.m. in Tokyo. The S&P 500 rose 0.2%Nasdaq 100 futures were steady. The Nasdaq 100 was little changedNikkei 225 futures rose 0.3%Australia’s S&P/ASX 200 Index futures fell 0.1%Hang Seng Index futures fell 0.3% earlier
The Japanese yen was at 110 per dollarThe offshore yuan traded at 6.4705 per dollarThe Bloomberg Dollar Spot Index was little changedThe euro was at $1.1772
The yield on 10-year Treasuries advanced five basis points to 1.34%
West Texas Intermediate crude was at $68.08 a barrelGold was at $1,791.13 an ounce
More stories like this are available on bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2021 Bloomberg L.P.