Asia opens mixed game as tech giants signal rebound: markets close

(Bloomberg) — Asian stocks looked set for a mixed opening Friday as shares of big technology companies on Wall Street rallied late in the session after solid gains. US stock futures are rising.

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Nasdaq 100 futures gained in the Asian session after the underlying benchmark fell 1.9% on Thursday. Both Inc. and Intel Corp. gained in after-hours trading after the technology-based index hit its lowest level since May. Gains in U.S. futures show an early rebound as trading began on Wall Street after the S&P 500 index was on the brink of closing in correction territory.

In Asia, Australian shares rose slightly. Hong Kong futures rose while Japan futures fell. The Golden Dragon Index, which tracks the largest Chinese companies listed in the U.S., rose 0.5% on Thursday.

The earnings season leaves much to be desired as typically economically sensitive stocks that have performed well in difficult conditions are starting to creak under the pressure, said Geir Lode, director of global equities at Federated Hermes Ltd. Strong results are no longer enough for these economically sensitive stocks. have gained popularity as investors are concerned about the weaker macroeconomic situation.

Elsewhere, Treasury yields have fallen following a solid seven-year bond auction and a surge in jobless claims, indicating that the U.S. labor market is starting to falter despite still strong economic growth. Traders are now awaiting Friday’s PCE deflator print to reinforce predictions that the Federal Reserve will hold off next week.

Still, according to Bloomberg data, swap contracts predict a roughly one to three chance of another Fed hike in the current tightening cycle.

Traders also closely monitored geopolitical developments, with the Israeli military saying it had killed Hamass’s deputy intelligence chief, who it said was responsible for helping plan the Oct. 7 attacks. The army also carried out a limited airstrike in the northern Gaza Strip overnight, while Iran escalated its rhetoric against the US. Oil fell below $84 per barrel, while gold remained above $1,980 per ounce.

On the currencies front, the dollar gave up earlier gains as Treasury yields fell, while the yen held steady ahead of Tokyo inflation data, a gauge of Japanese consumer cost pressures. The euro recovered from the loss after the European Central Bank left interest rates unchanged, as expected.

Given the rapidly deteriorating macroeconomic landscape, as shown by the October PMIs, our view is that the ECB will have to enter 2024 very cautiously and will have no choice but to cut interest rates, said Julien Lafargue, chief strategist at Barclays Private Bank .

This week’s highlights:

  • China Industrial Gains, Friday

  • Japan Tokyo CPI, Friday

  • US PCE deflator, personal spending and income, consumer sentiment at the University of Michigan, Friday

  • Exxon Mobil results on Friday

Some of the major movements in the markets:


  • As of 8:15 a.m. Tokyo time, S&P 500 futures were up 0.5%. The S&P 500 Index fell 1.4%

  • Nasdaq 100 futures rose 0.8%. The Nasdaq 100 Index fell 2.5%

  • Hang Seng futures rose 0.6%

  • The Australian S&P/ASX 200 index increased by 0.4%


  • The Bloomberg Dollar Spot Index was little changed

  • The euro was little changed at $1.0564

  • The Japanese yen was little changed at 150.37 per dollar

  • The offshore yuan was little changed at 7.3209 per dollar

  • The Australian dollar rose 0.1% to $0.6329


  • Bitcoin rose 0.2% to $34,256.2

  • Ether rose 0.6% to $1,808.99


Raw Materials

This story was produced with support from Bloomberg Automation.

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