Dollar Holds Slide; Asia Stocks to Open Mixed: Markets Wrap

(Bloomberg) -- Asian stocks looked set for a mixed start after three days of gains, while U.S. equities climbed amid encouraging news on the vaccine front and speculation over progress on a stimulus package. The dollar weakened against all major peers.Futures dipped in Japan, were flat in Hong Kong and rose in Australia. S&P 500 contracts were little changed after the gauge rose to within 2% of its record closing high. Novavax Inc. jumped on positive early data from its experimental vaccine for Covid-19. Ten-year Treasury yields climbed. Oil rose after a government report showed a decline in U.S. stockpiles, while gold continued its ascent above a record $2,000 an ounce. Meantime, the offshore yuan touched a five-month high.Investors have been pushing stocks higher in recent days as pressure grows on Republicans and Democrats to resolve differences over a new U.S. virus relief package, especially with jobs data Wednesday painting a grim picture. Still, gains in precious metals suggest traders are nervous about the outlook for the global economy and are seeking a hedge.“Stock markets in general have been underpinned by expectations for further stimulus out of the U.S.,” said Candice Bangsund, portfolio manager of global asset allocation at Fiera Capital Corp. “The second-quarter earnings season has also lent some notable support and helped to counteract some of the fears about the latest resurgence in Covid cases.”The latest U.S. economic data was mixed, with payroll gains slowing sharply in July, suggesting the pickup in coronavirus cases is putting the brakes on the job market. Meanwhile, service industries expanded in July at the fastest pace since February 2019.“The overall economy is stalling while the market is increasing,” Nadine Terman, chief executive officer at Solstein Capital LLC, said on Bloomberg TV. “We know that relationship does not continue.”Here are some key events coming up:Reserve Bank of India and Bank of England rate decisions are due Thursday.Dallas Fed President Robert Kaplan discusses the U.S. economy at Thursday event.July U.S. jobs reports expected Friday.These are some of the main moves in markets:StocksFutures on the S&P 500 Index were little changed as of 8:13 a.m. in Tokyo. The gauge advanced 0.6% on Wednesday.Futures on Japan’s Nikkei 225 slid 0.1%.Hang Seng Index futures earlier ended little changed.Futures on Australia’s S&P/ASX 200 Index rose 0.4%.CurrenciesThe Bloomberg Dollar Spot Index declined 0.1%.The yen was at 105.60 per dollar.The offshore yuan traded at 6.9398 per dollar.The euro bought $1.1871, up 0.1%.BondsThe yield on 10-year Treasuries rose four basis points to 0.55%.Australia’s 10-year yield gained four basis points to 0.82%.CommoditiesWest Texas Intermediate crude added 0.3% to $42.32 a barrel.Gold was at $2,038.23 an ounce, little changed.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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