Dollar Holds Drop; Asia Stocks Set for Small Gains: Markets Wrap

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(Bloomberg) — The dollar remained weaker after a three-day drop while Asian stocks were poised to open slightly higher Friday amid muted trading due to Thanksgiving in the US.

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Equity futures in Japan, Australia and Hong Kong rose after European stocks gained as investors looked to a slower pace of interest-rate increases from the Federal Reserve. An index of global stocks was headed for the highest level since mid-September.

Australian bonds rose slightly after European sovereign debt rallied as traders trimmed wagers on rate increases by the European Central Bank. US markets were closed Thursday and will have a shortened session on Friday.

Oil was little changed as the European Union considered a higher-than-expected price cap on Russian crude and evidence mounted of challenges to demand. Gold rose for a third day.

The yen traded little changed ahead of inflation data for Tokyo due this morning. The consumer price index for both Japan and the capital is above the central bank’s inflation target, adding to pressure to raise interest rates.

Japan’s benchmark 10-year bond yield last traded at 0.24%, near the top of the Bank of Japan’s target band.

Meanwhile, Bank of America Corp. said its private clients are flocking to bonds and out of stocks amid fears of a looming recession. Bond funds attracted inflows for a 39th straight week, strategists led by Michael Hartnett wrote in a note. The strategists favor holding bonds in the first half of 2023, with stocks becoming more attractive in the last six months of next year.

Some of the main moves in markets:

Stocks

  • Nikkei 225 futures rose 0.1% as of 7:04 a.m. in Tokyo

  • Australia’s S&P/ASX 200 Index futures rose 0.2%

  • Hang Seng Index futures rose 0.4%

Currencies

  • The euro was unchanged at $1.0410

  • The Japanese yen was little changed at 138.57 per dollar

  • The offshore yuan was little changed at 7.1638 per dollar

Cryptocurrencies

  • Bitcoin was little changed at $16,542.78

  • Ether was little changed at $1,195.75

Bonds

Commodities

This story was produced with the assistance of Bloomberg Automation.

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