Asian Stocks Dip as China Crackdown Widens

Major US indexes ended green yesterday as US economy continues to recover from the COVID-19 pandemic. The Dow rose 0.78%, the S&P 500 also followed with a rise of 0.60% and Nasdaq rose by 0.78%. The 10-year US treasury yields ended 4 bps up on the day, yielding around 1.2235 after weekly jobless claims data matches expectations. The U. dollar traded sideways with a minor change by 3 bps down.

Asian markets opened mixed today. China’s CSI 300 is down by 0.61% on worries over tightening government regulations. Japan’s NIKKEI edges higher by 0.52% trading at 27728.12, set for the best week since May-end on strong earnings. HANG SENG is currently trading 0.04% down. Australia’s ASX is up by 0.36%, climbing higher to fresh peaks for a second straight session despite resource sector weakness.

European stocks ended at record highs on Thursday, as strong results from Novo Nordisk and Siemens helped outweigh weak mining stocks and losses in major German retailers whose earnings were hurt by COVID-related disruptions. The European STOXX 600 ended 0.4% higher at a record high of 469.96 points, its fourth consecutive peak this week. London’s mining companies broke the FTSE 100’s three-day winning streak on Thursday as the price of iron ore dropped. The index was also pushed lower after the Bank of England increased its inflation forecast for the UK economy to 4%, twice the bank’s target rate. The Bank of England on Thursday kept its benchmark interest rate unchanged but said that inflation was now on course to rise even further above its 2% target, although it reiterated that higher prices would be temporary.

The Russian stock market completed trading in the green zone amid a corrective rebound in oil and a generally positive mood on global markets. The Moscow Exchange index increased by 0.61% to 3833.75 points. The RTS index increased by 0.79% to 1,653.31 points. The growth leaders among blue chips were Rostelecom, VTB, Sberbank, Tatneft. The Russian stock market ended trading with growth of 0.6% – 0.8%

Brent oil futures edged up 0.13% to $71.38 by 5:07 AM GMT and WTI futures edged up 0.12% to $69.17. Concerns as countries implement restrictive measures to curb their latest COVID-19 outbreaks continue to cloud the fuel demand outlook. However, the ongoing tensions in the Middle East between Iran and Israel helped cap the black liquid’s losses. Gold was down on Friday morning in Asia but remained near the key $1,800 mark as investors await the latest US jobs report. Gold futures were down 0.39% to $1,801.90 by 5:24 AM GMT and were set for their worst weekly performance since mid-June 2020.