Asian stocks kicked off on Friday after U.S. tech stocks and Treasury rallied on Thursday, while investors unwrapped some of this year’s dominant reflation trades.
Dollars grew gains and commodities, stable after overnight losses.
Stocks climbed in Hong Kong and Australia, and changed little in Japan and South Korea. India’s SGX Nifty 50 Index futures for June delivery rose 0.4% to 15,750.00, while the MSCI Asia-Pacific index changed slightly. The NSE Nifty 50 index fell 0.5% on Thursday to 15,691.40.
In China, stocks fluctuated after U.S. regulators proposed a ban on Huawei Technologies Co.’s products. and four other Chinese electronic companies. U.S. futures rose more after a fresh turn of cyclical stocks, pushing the technologically heavy gauge Nasdaq to another record.
Treasury yields stable amid falling amid speculation that investors have disrupted the steeper curve, after Federal Reserve officials hinted that tightening monetary policy could begin earlier than previously thought, helping to curb the risk of inflation spiraling out of control. Australian yields of 10 years have receded.
The Bloomberg dollar spot index fell after the fifth day of gains, its longest winning streak since March 2020. Its progress has made products more expensive at green prices, a drop across the complex. Copper is moving in the worst week since the beginning of the pandemic, and the oil slipped on Friday.
At home, Power Grid, Natco Pharma, J&K Bank may react as companies reported quarterly results after the market closed on Thursday. Eveready Industries, GMR Infra are among the companies that should report earnings on Friday. Foreign investors sold a net 886 million shares on Wednesday, according to the NSDL website.