(Bloomberg) — Asian stocks, led by Japan, rallied on Friday after U.S. stocks ended February at new highs after the Federal Reserve’s preferred inflation measure matched consensus expectations. Rose.
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After two consecutive days of decline, the Japanese Nikkei Stock Average rose as much as 1.8% to a record high. Chinese stocks, Hong Kong stocks, and Australian stocks rose.
U.S. stock futures remained strong after the S&P 500 and Nasdaq 100 both closed at record levels, with Nvidia hitting a new high for the day. The two benchmarks ended February with his fourth straight month of gains.
U.S. Treasuries were firm in Asian markets after rising in the second session on Thursday, helped by jobless claims data that showed a softening labor market. Traders also pointed to the possibility that short covering was behind the rally. The dollar index was little changed.
Governor Kazuo Ueda said the Bank of Japan's price target is not yet clear. His comments could dampen speculation that the central bank could raise interest rates for the first time since 2007 as early as March. The yen fell against the dollar on Friday.
“We are not yet in a situation where we can foresee achieving a sustained and stable inflation target,” Ueda said Thursday after a meeting with G20 central bank officials and finance secretaries in Sao Paulo, Brazil. Stated. “We will continue to seek confirmation whether a virtuous cycle of wages and prices has begun,” he said.
In South Korea, markets are closed on Fridays as it is a public holiday.
China's factory activity contracted for the fifth consecutive month in February, suggesting weak demand remains a drag on the economy. Measures of non-manufacturing activity were in expansion mode, helped by a recovery in travel and tourism during the recent long holiday.
The country's slump in home sales continued into February, even as regulators stepped up efforts to revive the troubled property market. Sales of new homes by the 100 major real estate companies decreased by 60% compared to the previous year.
U.S. stocks rose on Thursday's release of personal consumption expenditure index data. Although it showed that underlying inflation was trending at its fastest pace in a year, the numbers were in line with economists' consensus expectations and did not shake up the broader disinflationary trend underlying rate cut expectations. Ta.
“For a market focused on when the Fed will move to lower interest rates, this report is not a question of 'if' but 'when' the Fed will begin lowering rates in 2024,” said Quincy Crosby of LPL. It will help restore confidence.” Finance.
San Francisco Fed President Mary Daly said central bank officials were prepared to lower interest rates if necessary, but stressed there was no urgent need to cut rates given the strength of the economy. Rafael Bostic in Atlanta said the central bank could start cutting rates this summer.
Bitcoin held steady at around $61,000 as demand from exchange-traded funds (ETFs) continued. BlackRock Inc.'s iShares Bitcoin Trust recorded a record inflow of $612 million on Wednesday.
West Texas Intermediate crude oil was little changed on Friday. The U.S. Energy Information Administration said oil demand is likely to reach a four-year high in 2023 and remain around that level this year. Elsewhere, gold firmed after rising to a three-week high near $2,045 an ounce.
This week's main events:
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Eurozone S&P World Manufacturing PMI, CPI, Unemployment Rate, Friday
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BOE Chief Economist Hugh Pill speaks on Friday
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US Construction Spending, ISM Manufacturing, University of Michigan Consumer Sentiment, Friday
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Fed's Rafael Bostic and Mary Daly speak on Friday
The main movements in the market are:
stock
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S&P 500 futures were up 0.2% as of 11:52 a.m. Tokyo time.
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Nikkei 225 futures (OSE) rose 1.6%
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Japan's TOPIX rose 1.1%
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Australia's S&P/ASX 200 rose 0.4%
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Hong Kong's Hang Seng rose 0.4%
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Shanghai Composite: Almost no change
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Euro Stoxx50 futures rise 0.5%
currency
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Bloomberg Dollar Spot Index little changed
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The euro rose 0.1% to $1.0819.
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The Japanese yen fell 0.3% to 150.36 yen to the dollar.
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The offshore yuan was almost unchanged at 7.2100 yuan to the dollar.
cryptocurrency
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Bitcoin fell 0.9% to $60,894.27.
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Ether rose 0.3% to $3,361.7
bond
merchandise
This article was produced in partnership with Bloomberg Automation.
–With assistance from Richard Henderson.
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