(Bloomberg) — Stocks in Asia were set to open higher after US shares climbed and Treasuries sold off as investors weighed fresh data that indicated further Federal Reserve tightening ahead.
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Australia stocks rose while futures for Japanese and Hong Kong equities gained ground. The S&P 500 climbed 0.3% to close at its session high while the Nasdaq 100 ended the day 0.8% higher.
Australian and New Zealand bond yields rose after benchmark 10-year Treasury yields increased by six basis points on Wednesday, helping to spur a 0.6% advance in the dollar.
The action echoed trading in the prior session as signs of a robust US economy that would compel a hawkish Fed response were shrugged off by equity investors. US retail sales in January jumped by the most in almost two years and homebuilder sentiment rose in February by the most since mid-2020.
The new data follows a hotter-than-expected inflation print on Tuesday and comes ahead of US employment data to be released Thursday that is expected to show an uptick in jobless claims.
The market “is telling us maybe we can keep going as long as inflation is coming down overall and growth is solid,” Quincy Krosby, chief global strategist for LPL Financial, said in an interview with Bloomberg Television.
The rally in risk assets helped propel some of the most speculative corners of the market. A Goldman Sachs Group Inc. benchmark of non-profitable tech companies rose 4.4% and is up almost 30% this year. Bitcoin rose further after jumping 8.7% Wednesday, the most in three months, to reach the highest level since August.
“Everybody is trying to figure out whether this is going to be a once-in-a-lifetime soft landing or if it’s just taking longer before we get a panic recession,” Jerry Braakman, chief investment officer of First American Trust, said in an interview. “That’s why you’re seeing a lot of divergence between bulls and bears.”
Oil futures dropped below $79 a barrel after EIA reported that crude inventories rose over 16 million barrels last week.
Cisco Systems Inc. shares rose as much as 10% in late trading after it gave an upbeat revenue prediction that suggested that spending on tech infrastructure is holding up better than expected. Devon Energy Corp. fell more than 10% after fourth-quarter earnings missed estimates.
US jobless claims, Australia unemployment, Cleveland Fed President Loretta Mester speaks at Global Interdependence Center event Thursday
France CPI, Russia GDP Friday
Some of the main moves in markets as of 8:10 a.m. Tokyo time
Nikkei 225 futures were 0.8% higher
Hang Seng futures rose 0.2%
Australia’s S&P/ASX 200 rose 0.2%
The Bloomberg Dollar Spot Index rose 0.6%
The euro was little changed at $1.0691
The Japanese yen rose 0.2% to 133.92 per dollar
The offshore yuan was little changed at 6.8658 per dollar
Bitcoin rose 0.2% to $24,234.97
Ether was little changed at $1,667.4
West Texas Intermediate crude fell 0.1% to $78.49 a barrel
Spot gold was unchanged at $1,836.01 an ounce
This story was produced with the assistance of Bloomberg Automation.
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