Asian Stocks Drift; Treasuries Steady After Losses: Markets Wrap

(Bloomberg) -- Asian stocks drifted Friday as investors mulled the stalemate in stimulus talks in America and parsed signs of an economic recovery. Treasury yields steadied near an eight-week high.Shares in South Korea led decliners after daily virus cases there almost doubled. Hong Kong fell, while stocks fluctuated in Japan and China and posted modest gains in Australia. Data showed China’s economic recovery continued in July, though domestic retail sales were weak. S&P 500 futures ticked higher, following a dip in the benchmark a day after it surpassed an all-time closing high, with energy, real estate and industrial sectors leading the drop. The Nasdaq Composite Index closed in positive territory on below-average volume. Gold was little changed and the dollar was steady.Elsewhere, oil held losses as investors assessed the International Energy Agency’s reduced forecasts for global oil demand in part due to a slowdown in air travel.Investors continue to bank on further fiscal stimulus to help the nascent recovery, after stock markets in the U.S. and Asia erased most of their pandemic-related losses. A report showed weekly jobless claims in the U.S. dropped below 1 million for the first time since March, but there are more Americans seeking work now than at the highest point after the 2008 financial crisis.“Investors assumed that a deal would get done in early August. Now that this is not happening, it raises some risks for the economy,” said Matt Maley, chief market strategist at Miller Tabak & Co. “Therefore, investors are going back to focusing on what will work even if the economy sputters once again.”Meanwhile, Florida’s governor warned that more Covid-19 virus deaths may be coming at nursing homes and assisted-living facilities. Germany recorded the highest number of new cases in more than three months, as cases also rose in France, Greece and Spain.Here are some key events coming up:China releases a slew of data for July on Friday, including industrial production and retail sales.U.S.-China trade talks are expected in coming days.These are the market movers:StocksS&P 500 futures rose 0.2% as of 11:08 a.m. in Tokyo. The S&P 500 fell 0.2% Thursday.Japan’s Topix Index was little changed.Kospi Index fell 1.3%.Australia’s S&P/ASX 200 rose 0.4%.Hang Seng Index fell 0.1%.Shanghai Composite Index rose 0.1%.CurrenciesThe yen was little changed at 106.96 per dollar.The offshore yuan traded flat at 6.9467 per dollar.The Bloomberg Dollar Spot Index was little changed.The euro bought $1.1809, down less than 0.1%.BondsThe yield on 10-year Treasuries fell one basis point to 0.71% Thursday.CommoditiesWest Texas Intermediate crude rose 0.1% to $42.27 a barrel.Gold was little changed at $1,952 an ounce.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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