Asian stocks, U.S. and European equity futures climbed Friday as technology shares continued to drive gains, tempering concern over a bumpy economic recovery. The dollar edged lower.
Stocks saw a modest advance in Hong Kong, China and Japan, following a fresh Nasdaq 100 record overnight. Volumes were below average. South Korean stocks pared some of Thursday’s slump as data showed a slide in exports eased. S&P 500 futures edged higher, while the 10-year Treasury yield was steady. The offshore yuan rose to its highest level in seven months.
The S&P 500 posted a moderate climb Thursday, when a technology rally offset a slide for energy producers and banks amid light volume. The benchmark had shrugged off earlier weakness from disappointing jobs data.
Investor demand for Internet and software companies remains intact, with solid balance sheets and a suite of products that benefit from social distancing helping tech extend this year’s surge — the biggest among major S&P 500 groups. The industry has sustained stock market momentum, despite concern over lofty valuations.
Vaccine news has also been driving investor sentiment as drug trials progress. Pfizer Inc. and BioNTech SE said their coronavirus inoculation is on track for regulatory review as early as October, assuming clinical success.
Applications for U.S. unemployment benefits unexpectedly increased on Thursday, with initial jobless claims climbing to more than 1.1 million. The report reinforces forecasts that improvement in the labor market will occur in fits and starts, with the latest uptick likely representing a pause in that recovery — rather than a substantial change in direction.
“We are looking for a continued improvement in the economy, but the pace will probably slow down now that we’ve had this quick rebound,” Kathy Jones, chief fixed income strategist at Charles Schwab, said on Bloomberg TV. “That puts a lid on the upper end of yields.”
On the trade front, China confirmed plans to talk with U.S. officials soon to review progress on their preliminary deal — a rare engagement between the world’s largest economies as relations deteriorate. Speaking in Arizona earlier this week, President Donald Trump said he canceled those plans because he’s unhappy with the Asian nation’s role in the Covid-19 pandemic.
Elsewhere, oil edged higher, on track for a third weekly gain. Gold nudged up though remained below $2,000 an ounce.
These are some of the main moves in markets:
Stocks
- S&P 500 futures gained 0.3% as of 1:01 p.m. in Tokyo. The gauge rose 0.3% Thursday.
- Japan’s Topix index advanced 0.3%.
- Hong Kong’s Hang Seng added 0.7%.
- Shanghai Composite rose 0.5%.
- South Korea’s Kospi index gained 1%.
- Australia’s S&P/ASX 200 index dipped 0.1%.
- Euro Stoxx 50 futures added 0.3%.
Currencies
- The Bloomberg Dollar Spot Index lost 0.1%.
- The euro bought $1.1874, up 0.1%.
- The yen rose 0.1% to 105.66 per dollar.
- The offshore yuan traded up 0.1% at 6.9011 per dollar.
Bonds
- The yield on 10-year Treasuries remained at about 0.65%.
- Australia’s 10-year yield rose three basis points to 0.88%.
Commodities
- West Texas Intermediate crude rose 0.2% to $42.91 a barrel.
- Gold was at $1,950.74 an ounce, up 0.2%.
Source: Bloomberg
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