Asian Stocks Rise to Track Gains on Wall Street: Markets Wrap

(Bloomberg) — Equity markets in Asia opened higher Friday after a stellar quarter for US stocks ended on a positive note amid speculation the Federal Reserve will be able to achieve a soft landing.

Japanese equities climbed while South Korean shares were steady as much of the region, including Australia, Hong Kong and Singapore are closed for a public holiday. A gauge of US-listed Chinese companies rose on Thursday, suggesting potential gains in mainland China.

Wall Street traders sent the S&P 500 to its 22nd record this year after data showed the economy is in good shape, offsetting the latest Fedspeak that reinforced bets officials will be in no rush to cut rates. A $4 trillion surge in US equity values in just three months has startled doomsayers, while leaving a host of strategists scrambling to update their 2024 targets.

“We think the market’s view of where economic fundamentals are heading, rather than any one economist’s or strategist’s view, is what ultimately drives stock market pricing,” said Lori Calvasina at RBC Capital Markets.

In Japan, traders are on alert for potential swings in the yen after officials stepped up warnings this week to stem the currency’s slide. While the yen has since strengthened a little, it remains close to levels not seen in decades.

Consumer price growth in Tokyo decelerated in March, backing the central bank’s case for a cautious policy stance after its first rate hike since 2007 earlier this month. On Thursday, Prime Minister Fumio Kishida said he supported the need to keep monetary easing in place, while also warning against a weakening yen. In other data Friday, industrial output fell slightly in February, while retail sales gained.

On China’s corporate front, one of the nation’s biggest property firms delayed its earnings report while another posted a historic profit decline. Country Garden Holdings Co. announced late Thursday it will miss a deadline for reporting annual results, saying it needs more information. Developer China Vanke Co. said net profit tumbled 46% last year.

Preferred Inflation Gauge

The S&P 500 topped 5,250, ending with a quarterly rally of over 10%. Two-year Treasury yields climbed five basis points to 4.62% in a shortened session ahead of the holiday, after Fed Governor Christopher Waller’s remarks that he’d like to see “at least a couple months of better inflation data” before slashing rates. The dollar extended its quarterly advance. Trading of cash Treasuries in Asia is closed due to the holiday.

In economic data, the US government’s two main measures of activity — gross domestic product and consumer spending — posted strong advances at the end of last year. Consumer sentiment rose markedly toward the end of March, supported partly by the strong stock-market gains.

US stocks spent most of the day struggling for direction, with traders remaining reluctant to make any big bets before the Fed’s preferred inflation gauge and Fed Chairman Jerome Powell’s remarks Friday — when markets will be closed.

Elsewhere, gold hit a fresh all-time high, extending a weeks-long rally fueled by bets on Fed rate cuts and deepening geopolitical tensions. Oil scored a 16% quarterly gain in the latest sign that export curbs by OPEC and its allies are reining in global supplies.

FTX co-founder Sam Bankman-Fried was sentenced to 25 years in prison for stealing billions of dollars from customers.

Key events this week:

• Good Friday. Exchanges closed in US and many other countries in observance of holiday. US federal government is open

• Japan unemployment, Tokyo CPI, industrial production, retail sales, Friday

• US personal income and spending, PCE deflator, Friday

• San Francisco Fed President Mary Daly speaks, Friday

• Fed Chair Jerome Powell speaks, Friday

Some of the main moves in markets:

Stocks

• The S&P 500 rose 0.1%

• The Nasdaq 100 fell 0.1%

• Japan’s Topix rose 0.7%

Currencies

• The Bloomberg Dollar Spot Index rose 0.1%

• The euro was little changed at $1.0788

• The Japanese yen was little changed at 151.46 per dollar

• The offshore yuan was little changed at 7.2628 per dollar

• The Australian dollar was little changed at $0.6515

Cryptocurrencies

• Bitcoin was little changed at $70,748.29

• Ether fell 0.1% to $3,557.59

Commodities

• West Texas Intermediate crude rose 2.2% to $83.17 a barrel

• Spot gold rose 1.6% to $2,229.87 an ounce

This story was produced with the assistance of Bloomberg Automation.

—With assistance from Rita Nazareth.

©2024 Bloomberg L.P.