October 1, 2022

Asian stocks cut weekly losses, dollar stays near 20-year high by Reuters

© Reuters. File photo: A man holding an umbrella over an electronic stock price notebook outside a brokerage on April 7, 2015 in Tokyo. REUTERS / Issei Kato

By Andrew Calbright

SHANGHOI (Reuters) – Asian stocks rose on Friday, setting a second consecutive weekly loss and nearing the June 2020 low, while the dollar was nearing a 20-year high as investors digested strong inflation and tightening central bank policy.

Those concerns ultimately shattered hopes that high inflation on Wall Street would reach a bearish level on Thursday, with its January all-time high of almost 20%. [.N]

In an interview later in the day, US Federal Reserve Chairman Jerome Powell said the fight to control inflation “includes some pain.” Moreover, at the next two policy meetings of the central bank, he reiterated his expectation that the point interest rate would rise by half a percentage point, while promising that “we are ready to do more.”

Asian stocks rose on Friday after a sharp loss a day earlier. European stocks also set firm open, with the Pan-Zone up 1.08%, German up 0.93% and futures up 0.98%.

In afternoon trade, the broadest index of Asia-Pacific stocks outside Japan rose about 1.8% from Thursday’s 22-month close, reducing its losses to less than 3% for the week.

Australian stocks rose 1.93%, while the stock index rose 2.64%.

In China, the blue-chip CSI300 index was up 0.61% and in Hong Kong 2.22%.

“Yesterday we made some big moves. When you see those big moves, it’s natural to get some setbacks, especially since Friday’s weekend is coming. There’s really no new story,” said Matt Simpson of Senior Market. Analyst at City Index.

“I think it’s going to be without sellers. I’m not sure if this will be a buying rally this time around, maybe a short-covering rally before the weekend.”

With U.S. 10-year returns ranging from 2.817% to 2.8895% to 2.8895% on Thursday, higher moves in stocks reflect US Treasuries slipping.

The policy-sensitive 2 year yield was 2.5924% from 2.522%.

“We do not see any particular recession / recession signal, especially in the form of the U.S. Treasury curve, the same uniformly marked sliding signal assigned to H2 2023,” said Alan Ruskin, macro strategist. Deutsche Bank (ETR :), said in a note.

As Russia sped up Finland’s plans to apply for NATO membership, the US dollar was at a 20-year low against a basket of coins backed by the need for safe havens, and Sweden can follow suit.

Moscow has called Finland’s declaration hostile and threatened retaliation, including for unspecified “military-technical” actions.

The watch, which tracks the currencies of other major trading partners, fell about 0.1% to 104.65. But the greenback was strong against the yen, which traded at 128.62 against the dollar after reaching a two-week high of 127.5 overnight.

The European single currency was up 0.1% at $ 1.0389 after trading lower the previous day.

Cryptocurrency Bitcoin also rose, cracking to $ 30,000 after the collapse of Terroyust, also known as Staplecoin, to a nearly 16-month low of about $ 25,400 on Thursday.

In commodities markets, oil prices were higher against the backdrop of the EU pending embargo on Russian oil, but were still set for their first week of losses in three weeks as inflation and China’s Kovit locksmiths suffered concerns about slowing global growth.

The global increase was 1.32% to $ 107.53 per barrel and the global standard was up 1.6% to $ 109.17 per barrel.

The dollar was up 0.16% to $ 1,824.61 an ounce, driven by a three-month low against the dollar. [GOL/]