Asian Stocks Down, Investors Digest U.S. Positive Economic Data By

Asian Stocks Down, Investors Digest U.S. Positive Economic Data By

© Reuters.

By Gina Lee – Asia Pacific stocks were mostly down Friday morning, ending the week on a down note. The release of raised concerns about a slowdown of central bank stimulus measures, with investors now awaiting further data to be released later in the day.

Japan’s fell 0.51% by 10:37 PM ET (2:37 AM GMT). Household spending increased 0.1% and 13% in April, according to data released earlier in the day.

South Korea’s fell 0.41%.

In Australia, the inched up 0.06%, with data released earlier in the day.

Hong Kong’s edged up 0.12%. China’s was down 0.27% and the fell 0.31%.

In the U.S., data released on Thursday said fell to 385,000 in the previous week, lower than the 390,000 claims in forecasts prepared by and the 405,000 claims filed during the previous week. The number of claims also posted a fifth consecutive week of declines to a record low not seen since the start of the COVID-19 pandemic.

Investors now await the data in May, due later in the day, which could lead to volatility should it deviate from expectations. St. Louis U.S. Federal Reserve President James Bullard said the labor market might be worse than the current unemployment rate forecasts.

“With seemingly all systems go on the jobs front, the economy is flashing some very real signs that this isn’t just a comeback, expansion mode could be on the horizon,” Mike Loewengart, managing director of investment strategy at E*Trade Financial (NASDAQ:), told Bloomberg.

“So what does that translate to? Likely more pressure on the Fed to make a move, perhaps sooner than many thought from the outset.”

Investors remain concerned that the price pressure will force the Fed to change the course of its current dovish monetary policy although some officials repeatedly stated that any inflation will be transitory and the central bank will keep its current policy unchanged for a while.

New York Fed President John Williams (NYSE:) said on Thursday that the U.S. economic recovery from COVID-19 is far from the level at which the Fed might start to scale back its support for businesses, but added the central bank needs to start talking about a tapering of stimulus measures.

Other officials have also joined Williams in reiterating the need to start tapering discussions.

Investors will also be monitoring China’s response to an order signed by U.S. President Joe Biden on Jun 3. In the order, Biden amended a ban on U.S. investment into Chinese companies and named 59 firms with ties to China’s military or surveillance industries. Some of the affected companies include Huawei, China Mobile Ltd. (HK:), China Unicom (NYSE:) and China Telecommunications Corp.

The order will take effect on Aug. 2 at 12:01 a.m. in New York, and investors will be given one year to fully divest any stakes.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a comment

Send a Comment

Your email address will not be published. Required fields are marked *