Asian shares show muted gains after US stocks rally

 

Asian shares rose on Thursday after two days of losses in the US as investors weighed evidence of a slowing US economy

Shares in Asia rose on Thursday after a two-day slide as investors weighed evidence of a slowing US economy with mixed Federal Reserve commentary from its latest meeting.

Equity benchmarks in Australia and South Korea rose less than 1% each, while Japanese shares were volatile. Hong Kong futures contracts edged higher, indicating further gains after a bounce on Wednesday following favorable news from China. S&P 500 contracts moved in and out of negative territory after the index gained 0.8% in the previous session.

Australian and New Zealand 10-year government bonds rose. Similar-maturity Treasuries gained after advancing on Wednesday. The dollar declined and the yen rose.

Minutes of the Federal Reserve's December meeting showed that several officials highlighted the need to curb inflation without slowing the economy, which pleased some investors. However, policymakers were also concerned that a hot jobs market and weak financial conditions, including market expectations for rate cuts this year, could jeopardize the task of moderating rising consumer prices.

"The Fed wanted to send a message to the market that they will never hike or cut rates in 2023," said Joe Gilbert, portfolio manager at Integrity Asset Management. rate 400 basis points twelve months in advance, so the predictability of their own actions is sometimes bizarre."

Data released on Wednesday showed improving supply chain conditions, falling input prices and slowing demand -- all developments the Fed would welcome. But job opening data pointing to a strong labor market spooked investors. The non-farm payrolls report on Friday will provide a clearer picture of the labor market.

Crude oil prices rose after falling 9.5% in two days, including Wednesday's biggest daily decline since September. China's complicated reopening is one factor that has fueled the decline. Gold is trading flat after hitting a post-June high on Wednesday.


Major events of the week:

• Eurozone PPI, Thursday

• US ADP Employment Change, Initial Jobless Claims, Thursday

• China Business, Caixin PMI, Thursday

• Eurozone Retail Sales, CPI, Consumer Confidence, Friday

• Germany factory orders, Friday

• US Nonfarm Payrolls, Factory Orders, Durable Goods Friday

The main markets moves are:

shares

• S&P 500 futures were little changed as of 9:15 a.m. Tokyo Time. The S&P 500 rose 0.8%

• Nasdaq 100 futures were little changed. Nasdaq 100 rose 0.5%

• Hang Seng futures rose 1.7%

• Japan's Topix rose 0.1%

• Australia's S&P/ASX 200 rose 0.3%.

bond

• The yield on 10-year Treasuries rose one basis point to 3.69%

• Japan's 10-year yield was little changed at 0.46%

• Australia's 10-year yield declined eight basis points to 3.83%

Goods

• West Texas Intermediate crude rose 0.7% to $73.35 a barrel

• Spot gold was little changed