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07-07-2019, 07:14 PM
Asian Stocks Set to Slip; Turkish Lira Tumbles: Markets Wrap

(Bloomberg) -- Stocks in Asia looked set for a muted start to the week after their U.S. counterparts retreated and Treasury yields rose Friday on the strong jobs report. Turkey’s lira fell after its central bank governor was replaced.Futures pointed to modest declines in Japan, Hong Kong and Australia after the S&P 500 slipped on low volumes. The 10-year Treasury yield rose past 2% on Friday and the dollar climbed as traders reassessed the path of Federal Reserve rate cuts. Turkish assets are in focus after President Recep Tayyip Erdogan’s shock decision to replace the country’s central bank governor fueled concern the regulator will lower borrowing costs more than expected.Next up for traders comes Fed Chair Jerome Powell’s testimony to Congress on Wednesday and Thursday. Despite the trade war and fragile global growth, the latest American labor report delivered signs the economy remains on track. U.S. stocks hit a record last week and a bond rally took yields to multi-year lows amid expectations the Fed will lower interest rates by at least a quarter percentage point at its July meeting, though fed fund futures showed traders trimming the amount of easing they expect.“The testimony this week will be crucial around how they are seeing the evolution of the U.S. economy,” Anne Anderson, head of fixed income at UBS Asset Management in Sydney, told Bloomberg TV. “It’s a matter of finding the balance between not scaring people that there’s something deleterious going on, but moving ahead of the curve.”Here are some key events coming up:U.K. Conservative Party members vote on Monday by post to choose Theresa May’s successor. Front-runner Boris Johnson and Jeremy Hunt will appear at events through the week to try and secure votes, including a TV debate on July 9.Federal Reserve Chairman Jerome Powell testifies before Congress on monetary policy and the state of the U.S. economy on Wednesday and ThursdayA key measure of U.S. inflation, the core consumer price index, is expected to increase 0.2% in June from the prior month, while the broader CPI is forecast to remain unchanged from May.Here are the main moves in markets:StocksFutures on the S&P 500 Index added 0.1% as of 8:06 a.m. in Tokyo. The underlying gauge fell 0.2% on Friday.Futures on Japan’s Nikkei 225 were little changed in Singapore.Hang Seng futures dipped 0.3%.Futures on Australia’s S&P/ASX 200 Index slipped 0.2%.CurrenciesThe yen was steady at 108.53 per dollar.The offshore yuan held at 6.8966 per dollar.The euro bought $1.1228, little changed.The British pound added 0.1% to $1.2527.BondsThe yield on 10-year Treasuries climbed eight basis points to 2.03% on Friday.Australia’s 10-year yield added seven basis points to 1.35%. CommoditiesGold fell 0.3% to $1,395.71 an ounce.West Texas Intermediate crude rose 0.4% to $57.75 a barrel.\--With assistance from Emily Barrett.To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.netTo contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Cormac MullenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

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