Asia Stocks Mixed; Oil Rises On Mideast Tensions: Markets Wrap

(Bloomberg) — Equity markets in Asia were mixed Friday as traders digested conflicting signals in US inflation data, while oil rallied after the UK authorized military action in Yemen. (Bloomberg) — Equity markets in Asia were mixed Friday as traders digested conflicting signals in US inflation data, while oil rallied after the UK authorized military action in Yemen. West Texas Intermediate rose more than 2% to above $73 in early Asian trading.

UK Prime Minister Rishi Sunak approved joint military strikes with the US against Houthi rebels in Yemen following their attacks on ships in the Red Sea. Australian shares and Hong Kong equity futures fell, while Japanese equities extended their recent rally. US futures were little changed after the S&P 500 ended Thursday flat, while the tech-heavy Nasdaq 100 closed 0.

2% higher for its fifth daily advance — a run not seen in almost a month. The muted moves followed consumer price index data that showed headline prices increased more than expected in December, while core inflation fell — although less than consensus estimates. The data failed to dent the outlook for Federal Reserve rate reductions.

Swaps pricing for a cut by March increased slightly on the day, back toward levels seen at the end of 2023. Federal Reserve Bank of Cleveland President Loretta Mester pushed back against the prospect of a March cut and said the inflation figures showed policymakers had further work to do. “What should be most important for investors is that the Fed is done raising rates,” said Chris Zaccarelli at Independent Advisor Alliance.

“Whether they cut in March or cut in June and whether they cut four times, three times, or only two times, shouldn’t matter too much. ” Treasuries were little changed early Friday after a Thursday rally pushed the 10-year yield down six basis points and the policy-sensitive two-year yield down by around 11 basis points. Falling yields weakened the dollar against major currencies with the Norwegian Krone and New Zealand dollar the leading beneficiaries among G-10 currencies early Friday.

Australia and New Zealand yields fell, mirroring Thursday declines for Treasury yields. Bitcoin, China Elsewhere, more than $3 billion worth of shares traded between the 11 US spot Bitcoin exchange-traded funds on Thursday following Securities and Exchange Commission approval for the funds. Bitcoin rose slightly to trade above $46,000.

In Asia, data set for release includes Chinese inflation and producer prices data for December, CPI figures for India and Japan’s November current account balance. In China, a local media reported said some Chinese cities are using low-cost loans from the central bank to buy homes and convert them into rental housing. The move would be a new way to address the nation’s property crisis.

Comprehensive cross-platform coverage of the U. S. market close on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Scarlet Fu, Carol Massar and Tim Stenovec.

Source: Bloomberg Key events this week: China CPI, PPI, trade, Friday UK industrial production, Friday US PPI, Friday Some of the biggest US banks report fourth-quarter results, Friday Minneapolis Fed President Neel Kashkari speaks, Friday ECB chief economist Philip Lane speaks, Friday Some of the main moves in markets: Stocks S&P 500 futures were little changed as of 9:11 a. m. Tokyo time Nasdaq 100 futures were little changed Hang Seng futures fell 0.

7% Japan’s Topix rose 0. 6% Australia’s S&P/ASX 200 fell 0. 2% Currencies The Bloomberg Dollar Spot Index fell 0.

1% The euro was little changed at $1. 0982 The Japanese yen was little changed at 145. 23 per dollar The offshore yuan was little changed at 7.

1704 per dollar Cryptocurrencies Bitcoin rose 0. 3% to $46,322. 94 Ether rose 0.

6% to $2,619. 94 Bonds The yield on 10-year Treasuries was little changed at 3. 96% Japan’s 10-year yield was little changed at 0.

580% Australia’s 10-year yield declined five basis points to 4. 05% Commodities West Texas Intermediate crude rose 2% to $73. 49 a barrel Spot gold rose 0.

2% to $2,032. 70 an ounce This story was produced with the assistance of Bloomberg Automation. More stories like this are available on bloomberg.

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