Stocks Set to Rise as China Opens, Jobs Data Loom: Markets Wrap

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(Bloomberg) — Asian stocks look set to rise Friday after Wall Street climbed on easing concerns about the U.S. debt ceiling and an energy crunch. Traders are awaiting key jobs data as well as the start of trading in China after a holiday.

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Equity futures rose for Japan, Australia and Hong Kong, while U.S. contracts were steady. The S&P 500 and Nasdaq 100 advanced for a third day. U.S. lawmakers are due to vote on a temporary resolution of the debt-ceiling impasse, a step that aided sentiment.

The yield on U.S. 10-year Treasuries reached the highest since mid-June. While some fears about energy costs eased, investors continue to fret over inflation. The U.S. payrolls report Friday could also cement expectations that the Federal Reserve will soon start tapering bond purchases. The dollar was steady.

In China, financial markets are set to open for the first time in a week, turning the focus back on the debt woes in its property sector and Beijing’s wider regulatory broadsides. Central bank Governor Yi Gang said the nation will continue taking steps to curb monopolistic behavior among internet platforms and strengthen consumer and data protection.

Global stocks are on course for their best week since early September, helped by the U.S. move to avert the risk of an immediate default from the wrangling over the debt limit. But commodity-fueled price pressures, reduced central bank stimulus and China’s property-sector slowdown remain as challenges.

“We’ve had a 24-hour stretch where we’ve pulled back from a few of the key risk drivers that have been concerning markets,” said Giorgio Caputo, senior portfolio manager at J O Hambro Capital Management.

Elsewhere, oil rebounded after the U.S. Energy Department said it has no plans “at this time” to tap into the nation’s oil reserves to help quell rising fuel prices. The recent sharp rally in Bitcoin paused around the $54,000 level.

For more market analysis, read our MLIV blog.

Here are some events to watch this week:

Some of the main moves in markets:

Stocks

  • S&P 500 futures were steady as of 7:18 a.m. in Tokyo. The S&P 500 rose 0.8%.

  • Nasdaq 100 contracts advanced 0.1%. The Nasdaq 100 rose 0.9%

  • Nikkei 225 futures climbed 1.1%

  • S&P/ASX 200 futures increased 0.5%

  • Hang Seng futures advanced 0.8%

Currencies

  • The Bloomberg Dollar Spot Index was little changed

  • The euro was at $1.1555

  • The Japanese yen was at 111.63 per dollar

  • The offshore yuan was at 6.4541 per dollar

Bonds

Commodities

  • West Texas Intermediate crude rose 0.7% to $78.84 a barrel

  • Gold was at $1,755.67 an ounce

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