Investors Weigh US Jobs Strength, China Reopening: Markets Wrap




  • In Business
  • 2022-12-05 00:17:57Z
  • By Bloomberg
 

(Bloomberg) -- Stocks opened on a cautious note in Asia as investors weighed the impact of a hot US jobs report and an accelerated shift toward reopening of the Chinese economy.

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Shares declined Monday in Japan, fluctuated in South Korea and rose in Australia. US equity futures slipped after the S&P 500 closed fractionally lower on Friday. Contracts Hong Kong equities edged higher.

China's offshore yuan strengthened through the 7-per-dollar level for the first time in nearly three months amid the shift in response to the virus.

The greenback seesawed in a narrow range against most of its Group-of-10 counterparts. A gauge of the currency's strength remained near a five-month low.

Oil advanced after OPEC+ left oil production steady, sanctions on Russian crude took effect and China's loosening of Covid restrictions improved the outlook for demand.

Treasury yields edged higher during Asian trading hours after last week's wild moves following the US jobs report. Government bond yields in Australia and New Zealand fell.

Stronger-than-expected jobs figures prompted traders to increase their wagers on where rates will top out in the current tightening cycle, rather than changing their bets for the size of the increase at the Federal Reserve's December meeting. Policymakers are still expected to deliver a downshift to a 50 basis points hike at the gathering.

Employers added more jobs than forecast and wages surged by the most in nearly a year. Nonfarm payrolls increased 263,000 in November, while the unemployment rate held at 3.7%. Average hourly earnings rose twice as much as predicted.

Meanwhile, Chinese shares are likely to be boosted Monday after authorities eased some Covid restrictions in Shanghai and Hangzhou following protests against the nation's stringent policies last week.

Key events this week:

  • China Caixin services PMI, Monday

  • S&P Global PMI for the Euro zone, Monday

  • US factory orders, durable goods orders, ISM services index, Monday

  • ECB President Christine Lagarde speaks, Monday

  • Australia interest rate decision, Tuesday

  • US trade, Tuesday

  • EIA crude oil inventory report, Wednesday

  • Euro zone GDP, Wednesday

  • US MBA mortgage applications, Wednesday

  • ECB President Christine Lagarde speaks, Thursday

  • US initial jobless claims, Thursday

  • China PPI, aggregate financing, money supply, new yuan loans, Friday

  • US PPI, wholesale inventories, University of Michigan consumer sentiment, Friday

Some of the main moves in markets:

Stocks

  • S&P 500 futures fell 0.1% as of 9:09 a.m. in Tokyo. The S&P 500 fell 0.1% on Friday

  • Nasdaq 100 futures fell 0.1%. The Nasdaq 100 fell 0.4%

  • Japan's Topix index fell 0.2%

  • Australia's S&P/ASX 200 Index rose 0.3%

  • Hong Kong's Hang Seng futures rose 2.2%

Currencies

  • The Bloomberg Dollar Spot Index was little changed

  • The euro was little changed at $1.0541

  • The Japanese yen fell 0.2% to 134.61 per dollar

  • The offshore yuan rose 0.5% to 6.9856 per dollar

Cryptocurrencies

  • Bitcoin fell 0.1% to $17,092.26

  • Ether rose 0.1% to $1,278.19

Bonds

  • The yield on 10-year Treasuries advanced four basis points to 3.52%

  • Australia's 10-year yield declined four basis points to 3.35%

Commodities

  • West Texas Intermediate crude rose 1.8% to $81.41 a barrel

  • Spot gold rose 0.1% to $1,799.84 an ounce

This story was produced with the assistance of Bloomberg Automation.

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