Global stocks trimmed a weekly loss as Chinese tech shares rebounded more than 10%, helping offset some of the drag on markets caused by Federal Reserve interest-rate hikes.
(Bloomberg) — Global stocks trimmed a weekly loss as Chinese tech shares rebounded more than 10%, helping offset some of the drag on markets caused by Federal Reserve interest-rate hikes.
US and European equity futures rose and a gauge of Asian shares headed for the biggest weekly jump since July. The gains in Chinese stocks came as investors continued to speculate on the possibility of Beijing rolling back its Covid-Zero policy. News that US audit officials were ahead of schedule in on-site inspections of Chinese companies also supported sentiment.
Treasury yields were steady ahead of a US jobs report. A key segment of the curve on Thursday reached an extreme of inversion not seen since the 1980s. Such curve inversions have a track record of preceding economic downturns, which is adding to market jitters before jobs data later Friday.
Swaps that reference future Fed meetings indicate an expected peak rate above 5.15% around mid-2023.
Japanese shares were the biggest drag in Asia as investors in Tokyo played catchup after Thursday’s holiday.
The dollar weakened against all major currencies and the offshore yuan jumped more than 1%.
Chinese stocks in Hong Kong headed for their best week since 2015 as a US audit of the nation’s companies showed signs of progress. A gauge of equities listed in the city was up about 12% for the week after unverified social media posts circulated earlier, claiming that a committee was being formed to assess scenarios on how to exit Covid Zero.
“What we are guessing is China in the future will model the reopening on the back of Hong Kong,” Jack Siu, Greater China chief investment officer at Credit Suisse Group AG, said on Bloomberg Television. “To fully reopen, we are still at least nine months away from today.”
Elsewhere, oil rose as investors weighed a tightening outlook for energy supply against persistent concerns over a global economic slowdown. Gold climbed.
Key events this week:
- US nonfarm payrolls, unemployment, Friday
Some of the main moves in markets:
Stocks
- S&P 500 futures rose 0.3% as of 2:41 p.m. in Tokyo. The S&P 500 fell 1.1% Thursday
- Nasdaq 100 futures rose 0.5%. The Nasdaq 100 fell 2%
- The Topix Index fell 1.4%
- The Kospi Index rose 0.5%
- The Hang Seng Index rose 6.7%
- The Shanghai Composite Index rose 2.6%
- Euro Stoxx 50 futures rose 0.6%
- Australia’s S&P/ASX 200 Index rose 0.5%
Currencies
- The Bloomberg Dollar Spot Index fell 0.4%
- The euro rose 0.3% to $0.9782
- The Japanese yen rose 0.2% to 147.94 per dollar
- The offshore yuan rose 1% to 7.2591 per dollar
Cryptocurrencies
- Bitcoin rose 0.7% to $20,387.36
- Ether rose 0.7% to $1,552.09
Bonds
- The yield on 10-year Treasuries was little changed at 4.14%
- Australia’s 10-year yield declined seven basis points to 3.85%
Commodities
- West Texas Intermediate crude rose 2.1% to $90.02 a barrel
- Spot gold rose 1.1% to $1,647.53 an ounce
–With assistance from Tommi Utoslahti.
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