GLOBAL MARKETS-Asia shares flat, holidays help blunt U.S. tech retreat

Reuters | Updated: 05-05-2021 06:25 IST | Created: 05-05-2021 06:25 IST
GLOBAL MARKETS-Asia shares flat, holidays help blunt U.S. tech retreat

Asian shares risked falling for a fourth straight session on Wednesday as sentiment took a knock from a selloff in large cap Wall Street tech darlings, combined with talk of rising U.S. interest rates. Holidays in Japan, China and South Korea limited the early reaction, leaving MSCI's broadest index of Asia-Pacific shares outside Japan dithering either side of flat.

Japan's Nikkei was shut, but futures traded down at 28,735 compared to the last cash close of 28,812. Nasdaq futures steadied after a sharp pullback overnight, while S&P 500 futures inched up 0.1%.

The Nasdaq had dropped 1.9% on Tuesday as some big tech names ran into profit-taking, including Microsoft Corp, Alphabet Inc, Apple Inc and Amazon.com Inc . Stretched valuations were tested when U.S. Treasury Secretary Janet Yellen said rate hikes may be needed to stop the economy overheating.

She later waked back the comments, but it reminded investors that rates would have to rise at some point in the future. "Moderate inflation and a slow moving Fed would continue to be supportive, but inflation and a reactive Fed may prove to be a negative for valuations," said Tapas Strickland, a director of economics at NAB.

"Either way yields and equities are likely to be in a dance as much better than expected economic data continues to challenge central banks' rates guidance." One such challenge looms on Friday when U.S. payrolls data are forecast to show a hefty rise of 978,000, while some estimates go as high as 2.1 million.

So far, Federal Reserve Chair Jerome Powell has argued the labour market is still far short of where it needs to be to start talking of tapering asset buying. Minneapolis Fed Bank President Neel Kashkari, a notable dove, on Tuesday said it may take a few years for the economy to get back to full employment.

The Fed's dogged patience allowed yields on U.S. 10-year notes to ease back to 1.59%, from last week's top of 1.69%, though the market has struggled to break below 1.53%. Just the mention of higher U.S. rates was enough to help the dollar recoup a little of its recent losses.

The euro dropped back to $1.2015 and threatened to breach important chart support in the $1.1995/1.2000 area. A break would open the way to a retracement target at $1.1923. The dollar was a shade firmer on the yen at 109.36, but faces resistance at 109.61. Against a basket of currencies, the dollar edged up to 91.282 and away from a recent two-month low of 90.422.

The New Zealand dollar blipped higher to $0.7160 when local jobs data proved strong than expected. In commodity markets, palladium soared to a record high on worries over short supplies of the metal used in emissions controlling devices in automobiles.

Gold was left lagging at $1,776 an ounce. Oil prices climbed to seven-week peaks as more countries opened their borders to travellers, improving the demand outlook for petrol and jet fuel.

Brent added 57 cents to $69.49 a barrel, near its highest since mid-March, while U.S. crude rose 52 cents to $66.23 per barrel. (Editing by Sam Holmes)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

Blockchain in Healthcare: Opportunities and challenges

The use of blockchain in healthcare is a relatively new innovation with many of its uses still being explored and related technologies being developed, improved, and scaled. ...

Debate surrounding vaccine passports and development misses bigger picture

... ...

Blockchain vs IOTA: Looking for a better alternative

... ...

For stability, Iraq needs to crack down on corruption

... ...

Videos

Latest News

Olympics-Basketballer Cambage says 'I'm in' for Tokyo after race furore

Basketballer Liz Cambage has confirmed she will play at the Tokyo Games, backtracking on a threat to boycott the showpiece over a lack of racial diversity in Australias Olympic photo-shoots.Cambage, who was born to a Nigerian father, took u...

Top U.S. fuel pipeline remains days from reopening after cyberattack

The biggest U.S. gasoline pipeline will not resume full operations for several more days due to a ransomware cyberattack blamed on a shadowy criminal network called DarkSide. The attack on the Colonial Pipeline, which carries nearly half th...

Pakistan suffers setback as trade with Afghanistan declines

Pakistans exports to Afghanistan have declined in the current fiscal year, which is depriving the former country of a major market for its products and dwindling trade with its neighbour. Pakistans exports to Afghanistan fell 5.5 per cent f...

American Airlines adds stops to two flights after pipeline outage

American Airlines said on Monday it has added a stop to two long-haul flights out of Charlotte, North Carolina, because of a fuel supply shortage after the shutdown of the Colonial Pipeline following a ransomware cyber attack.American is th...

Give Feedback