Stocks Point to Mixed Start in Asia; Bonds Climb: Markets Wrap – Bloomberg

A dearth of risk appetite greeted markets at the start of the week.

Stocks in Australia, South Korea and New Zealand declined with S&P 500 Index futures, after global equities closed at an all-time high on Friday. Hang Seng contracts were flat, while Japan’s stock market is closed Monday for a holiday. The Australian 10-year yield resumed a retreat after rising at the end of last week. The yen touched its strongest since Feb. 28.

Global stocks are coming off their best week since January after central banks in the U.S. and China raised interest rates. Volatility remains low across markets from equities to currencies and fixed-income as investors place faith in the emerging global economic recovery. Money managers will be scrutinizing a flurry of Chinese company earnings that are due this week from Tencent Holding Ltd. to Cnooc Ltd.

The Group of 20 nations omitted a pledge to resist all forms of protectionism in its communique from its meeting in Baden-Baden, Germany at the weekend. That shift followed hours of wrangling that kept officials in suspense on whether the G-20 would even mention trade, with occasional doubts that a communique might be produced at all.

Read our Markets Live blog here.

What’s coming up this week:

  • Central bank policy decisions in New Zealand, Philippines and Sri Lanka.
  • Japan Prime Minister Shinzo Abe to host trade talks with the European Union on Tuesday.
  • A deluge of earnings from Chinese companies, including: Citic Securities, Sinopec and Ping An.
  • Reserve Bank of Australia Governor Guy Debelle speaks Wednesday in Singapore.

Here are the main market moves:

  • The yen traded at 112.57 per dollar as of 8:30 a.m. in Hong Kong and reached 112.55. That comes on the back of its strongest week since the start of February.
  • New Zealand’s S&P/NZX 50 Index declined 1.3 percent, dragged lower by Fletcher Building Ltd., which identified more expected losses in its construction division. 
  • Australia’s S&P/ASX 200 Index and South Korea’s Kospi index each lost at least 0.3 percent.
  • Futures on the S&P 500 Index were down 0.2 percent. The underlying gauge rose 0.2 percent last week. 
  • The yield on 10-year Australian government bonds dropped four basis points to 2.82 percent.
  • The MSCI Emerging Markets Index nudged up. It climbed for the past six days as investors favored assets in higher-yielding currencies.

    Stocks Point to Mixed Start in Asia; Bonds Climb: Markets Wrap – Bloomberg}