(Bloomberg) — Asian shares looked poised to open higher on Monday, supported by the biggest weekly gain in U.S. stocks since June and China’s policy changes on Covid and property.
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The dollar advanced after Federal Reserve Governor Christopher Waller said “we still have some way to go” before ending rate hikes.
Shares rose in Australia and futures pointed to gains in Hong Kong. Japan contracts showed a modest pullback after a 3 percent jump in the Nikkei 225 on Friday. US futures were lower.
A benchmark of US-listed Chinese shares jumped more than 6% on Friday after the easing of quarantine rules, boosting bets that Beijing is moving away from its strict Covid Zero policy. Extensive easing of the property sector over the weekend added to signs that President Xi Jinping is turning his attention to rescuing the economy.
The dollar’s rise on Monday came after it tumbled more than 1% on Friday and fell for a fourth straight week in its worst performance since 2020.
Although Waller sees the hike cycle continuing for some time, he said the Fed could start considering a move to 50 basis points at the next meeting in December or the one after that.
The greenback edged lower amid signs of cooling U.S. inflation and the prospect of a dovish Federal Reserve. The University of Michigan’s preliminary November survey on Friday showed that U.S. consumer inflation expectations rose in the short and long term, while sentiment eased.
That puts the focus on government bonds as they open Monday in Asia after cash trading was closed for Veterans Day on Friday.
Cryptocurrencies continued their selloff on Monday amid FTX’s deepening woes. The rapid decline in the value of FTX’s key crypto assets and the unauthorized withdrawals after the company declared bankruptcy suggest that customers have little chance of recovering much of their deposits.
Investors will be keeping a close eye on the G20 meeting in Indonesia, where US President Joe Biden and Chinese leader Xi are expected to meet. Biden’s hand has been strengthened by Democrats defying political predictions and historical trends to retain control of the Senate.
Key events this week:
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US President Joe Biden plans to meet Chinese President Xi Jinping on the sidelines of the G20 on Monday
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The Fed’s John Williams moderates a panel, Monday
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China retail sales, industrial production, jobless surveyed, Tuesday
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Former US President Donald Trump plans to make an announcement on Tuesday
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American Empire Manufacturing, PPI, Tuesday
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US business stocks, cross-border investment, retail sales, industrial production, Wednesday
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The Fed’s John Williams, Lael Brainard and SEC Chairman Gary Gensler speak Wednesday
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ECB President Christine Lagarde spoke on Wednesday
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Eurozone CPI Thursday
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US housing starts, initial jobless claims, Thursday
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The Fed’s Neil Kashkari, Loretta Mester talk, Thursday
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The US Conference Board’s leading index, sales of existing homes, Friday
Some of the major moves in the markets:
Stock up
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S&P 500 futures were down 0.4 percent at 8:10 a.m. Tokyo time. S&P 500 up 0.9%
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Nasdaq 100 futures fell 0.5%. Nasdaq 100 rose 1.8%
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Australia’s S&P/ASX 200 rose 0.5%
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Nikkei 225 futures fell 0.5%
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Hang Seng index futures rose 1.1%
Currencies
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The euro fell 0.3% to $1.0315
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The Japanese yen fell 0.6 percent to 139.65 per dollar
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The offshore yuan fell 0.2 percent to 7.1084 per dollar
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The Australian dollar fell 0.4% to $0.6679
Cryptocurrencies
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Bitcoin was little changed at $16,370.06
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Ether rose 0.4% to $1,221.45
Bonds
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