Asian stocks were steady Friday after a Wall Street rebound as traders weighed the economic recovery from the pandemic as well as the possibility of reduced U.S. stimulus. The dollar held a decline.
Shares rose in Japan but slipped in China and Hong Kong, where Tencent Holdings Ltd. slid after pledging a sharp boost in investment. European and U.S. equity contracts were modestly in the green after the S&P 500 pushed higher and the Nasdaq 100 rallied past its 50-day moving average. A drop in U.S. initial jobless claims put the focus back on the economic recovery, but there are lingering fears price pressures imperil loose financial conditions.
Treasury yields maintained a retreat. Weaker-than-expected demand for an auction of 10-year inflation-protected debt suggested confidence in the Federal Reserve’s narrative that the recent acceleration in inflation is unlikely to be sustained. A pause in this year’s commodity boom continued.
Gold is around the highest level in more than four months. Its claimed virtual rival, Bitcoin, steadied after a volatile cryptocurrency slump this week.