News24
09 Apr 2021, 14:43 GMT+10
Most Asian markets retreated Friday as traders took their foot off the pedal ahead of a much-anticipated earnings season, while an increasingly confident mood on trading floors has analysts predicting the global equities rally still has legs.
While some countries are having trouble with their vaccine programmes and a pick-up in infections, there is a general feeling that governments will get a better hold on the crisis and allow economies to reopen, if a little later than previously hoped.
Wall Street provided another strong lead, with the S&P 500 chalking up a second successive record and the Nasdaq piling on more than one percent as tech shares regained their mojo, having suffered recent selling.
Federal Reserve boss Jerome Powell again repeated his mantra that the bank would stand fast in its pledge to keep borrowing costs at record lows for as long as needed to support recovery in the world's top economy.
While last week's blockbuster jobs report was welcome, he said the "recovery remains uneven and incomplete" and he wanted to see more of those before he was happy progress was being made.
Analysts said an unexpected rise in jobless claims last week backed up Powell's stance.
There remains a concern that the forecast strong recovery, the reopening of the economy, President Joe Biden's vast spending sprees, and the rollout of vaccines will fan inflation to a point that the Fed will be forced to lift rates earlier than it intends.
Yields on benchmark 10-year Treasuries - a gauge of future rates - edged down as Powell spoke, though they remained around a one-year high.
'Kids in a candy store'
Data Friday showed Chinese producer prices rose at their fastest pace in more than two years owing to a jump in the cost of commodities.
That has led to concerns the increases will filter through to the world economy from the export giant, putting pressure on central banks as they try to keep borrowing costs down.
Axi strategist Stephen Innes said the figures "might add a ripple or two of angst to the inflation pacifist calm that has fallen on the market".
Still, he added: "Make no mistake this is a global equity market that is turning exceptionally comfortable with growth driving up yields supported by a Fed that is in absolutely no hurry to tap the brakes.
"The question is, does it get better than this, or are we nearing peak optimism? Or will US stocks remain in 'kids in a candy store mode' while gliding on a sugar rush tailwind from a once-in-a-generation type stimulus effect?"
Hong Kong and Shanghai dropped as traders kept tabs on China-US relations after Washington restricted trade with top Chinese supercomputing centres on security grounds, while lawmakers unveiled legislation to pressure Beijing over alleged theft of intellectual property and solidify ties with Taiwan.
Sydney, Seoul, Mumbai, Singapore, Taipei and Wellington were also lower, though there were gains in Tokyo, Bangkok and Jakarta.
London dipped with Frankfurt in early trade, while Paris rose.
But Xi Qiao at UBS Global Wealth Management said there would likely be more gains in the pipeline.
"A lot of investors are worried about the stock market highs, but that doesn't mean it can't get higher, and the economic conditions are certainly set up for a positive equity environment," she told Bloomberg TV.
Eyes are now turning to the release of corporate results for January-March, with expectations high that companies are seeing the benefits of the recovery and are hopeful for the outlook.
Get a daily dose of Singapore Star news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Singapore Star.
More InformationMADRID, Spain: Liverpool footballer Diogo Jota and his younger brother, André Silva, have died in a car accident in Spain. Spanish...
LONDON, U.K.: An unrelenting heatwave sweeping across Europe has pushed early summer temperatures to historic highs, triggering deadly...
President Donald Trump's plans to build a space-based Golden Dome missile defense shield have drawn immediate criticism from China,...
NEW YORK CITY, New York: Paramount has agreed to pay US$16 million to settle a lawsuit brought by U.S. President Donald Trump over...
LONDON, U.K.: British Prime Minister Keir Starmer won a vote in Parliament this week to move ahead with changes to the country's welfare...
WASHINGTON, D.C.: President Donald Trump will meet Israeli Prime Minister Benjamin Netanyahu at the White House on Monday. President...
FRANKLIN, Tennessee: Hundreds of thousands of Nissan and Infiniti vehicles are being recalled across the United States due to a potential...
REDMOND, Washington: Microsoft is the latest tech giant to announce significant job cuts, as the financial strain of building next-generation...
LONDON UK - U.S. stock markets were closed on Friday for Independence Day. Global Forex Markets Wrap Up Friday with Greeback Comeback...
SANTA CLARA, California: Nvidia came within a whisker of making financial history on July 3, briefly surpassing Apple's all-time market...
SACRAMENTO, California: California's multibillion-dollar farms are facing a growing crisis—not from drought or pests, but from a sudden...
WASHINGTON, D.C.: President Donald Trump says the United States could soon reach a trade deal with India. He believes this deal would...