Asian shares were headed for the first weekly loss in five as the stunning rally in Chinese shares took a breather, although all eyes are on the details of the much-anticipated fiscal stimulus from Beijing this weekend.
Overnight, data showed core U.S. consumer inflation came in at 0.3% in September, slightly hotter than expected, which pointed to stalling progress in the Federal Reserve’s fight against inflation. However, high weekly jobless claims figures kept bets that the Fed remains on track to cut interest rates in November.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose a subdued 0.3% but still set for a weekly loss of 1.7% after four straight weeks of gains. The Nikkei , however, gained 0.6%, bringing its weekly rise to 2.6%.
Wall Street futures , were up 0.1%. Investors are watching the launch of Tesla’s long-promised robotaxi late on Thursday.
Back in Asia, South Korean shares rose 0.4% after the Bank of Korea kicked off its easing cycle with a quarter-point move, a decision that was widely expected.
hina’s blue chips fell 1% on Friday and were down 1.5% for the week. Hong Kong’s Hang Seng, which is closed for a public holiday, fell 6.5% for the week, the biggest weekly drop in two years.
Ting Lu, chief China economist at Nomura, said markets were “laser-focused” on Saturday’s stimulus announcement.
“As any specific numbers on the extra budget and bond quota will require the approval of the National People’s Congress or its Standing Committee, which is highly unlikely to meet before the briefing, the market is keen to know what else the MOF might deliver,” Lu said.
Overnight, Wall Street was slightly lower while Treasury yields were mixed. Oil is the major mover, gaining more than 3% overnight thanks to a spike in U.S. fuel use before Hurricane Milton and the Middle East supply risks.
Brent futures fell 0.5% on Friday to $78.95 a barrel, having jumped 3.7% a day earlier.
Bond yields climbed for the week as traders pared expectations for outsized U.S. rate cuts.
Source: Reuters
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