Asian stocks cut weekly losses, the dollar is stable near 20-year highs

Asian stocks rebounded on Friday, but were set for a second consecutive weekly loss and remained close to the bottom of June 2020 as the dollar moved close to 20-year highs as investors absorbed concerns about strong inflation and tightening central policy. bank.

These fears eventually overcame Wall Street’s hopes that high inflation could peak, pushing the S&P 500 close to confirming a bear market on Thursday, with nearly 20% of its January high.

In an interview later in the day, US Federal Reserve Chairman Jerome Powell said the battle to control inflation “will involve some pain”. And he reiterated his expectations of raising interest rates by half a percent at each of the Fed’s next two political meetings, while promising that “we are ready to do more.”

After sharp losses a day earlier, Asian stocks rose on Friday. European stocks were also identified as an open company, with Euro Stoxx 50 futures in the region up 1.08%, German DAX futures up 0.93% and FTSE futures up 0.98%.

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In afternoon trading, MSCI’s broadest Asia-Pacific stock index outside Japan rose about 1.8 percent from its 22-month low at Thursday’s close, reducing its losses for the week to less than 3 percent.

Australian stocks rose 1.93%, while Japan’s Nikkei stock index jumped 2.64%.

In China, the CSI300 blue chip index rose 0.61% and Hong Kong’s Hang Seng rose 2.22%.

“We had some pretty big moves yesterday and when you see those big moves, it’s only natural to get some adjustment, especially since Friday is heading for the weekend. In fact, there is no new story to tell, “said Matt Simpson, a senior market analyst at City Index.

“I think the time is coming when you run out of sellers. I’m not sure it’s going to be a rally to buy right now, probably a rally with short coverage before the weekend. “

Higher stock movements were reflected in the decline of US bonds, as the reference 10-year US yield rose to 2.8895% from a close of 2.817% on Thursday.

The policy-sensitive 2-year yield was 2.5924%, compared to a close of 2.522%.

“Within the shape of the US Treasury curve, we see no particularly fresh signal of a recession / slowdown, exactly the same consistently marked slowdown projected for the second half of 2023,” said Alan Ruskin, a macro-strategist at Deutsche Bank.

The US dollar remained close to 20-year highs against an asylum-backed currency basket, while Russia shuddered at Finland’s plan to apply for NATO membership, with Sweden potentially following suit.

Moscow called Finland’s statement hostile and threatened retaliation, including unspecified “military-technical” measures.

The dollar index, which tracks against a group of currencies of other major trading partners, fell about 0.1% to 104.65. But the greenback was stronger against the yen, which traded at 128.62 per dollar, after hitting a two-week high of 127.5 reached overnight.

The single European currency was 0.1% more stable at $ 1.0389 after trading lower earlier in the day.
The cryptocurrency bitcoin also rose to $ 30,000 after the collapse of TerraUSD, the so-called stable coin, brought it to a 16-month low of about $ 25,400 on Thursday.

Oil prices were higher in commodity markets amid the European Union’s impending ban on Russian oil, but were set for their first three-week weekly loss amid fears of inflation and a blockade of COVID in China, slowing global growth.

US crude rose 1.32% to $ 107.53 a barrel and global crude oil Brent rose 1.6% to $ 109.17 a barrel.

Spot gold, which was brought to a three-month low by the rising dollar, rose 0.16% to $ 1,824.61 an ounce.

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