Business & Investment

Asian stocks are stable and the dollar weakens as traders await profits

© Reuters. File photo: After the outbreak of the coronavirus, a man wearing a protective mask speaks on his mobile phone outside a securities company in Tokyo on February 26, 2020, in front of a screen showing the Nikkei index. REUTERS / Athit Perawongmetha

Arun John

Hong Kong (Reuters)-Asian stocks started steadily on Monday ahead of a week full of major quarterly earnings announcements, but the dollar fell 10 after three weeks of risk-friendly sentiment hurt a safe currency. It remained near the monthly lows.

Both HSBC and Facebook (NASDAQ :) will publish quarterly results on Monday for trading in Asia and late in the US, respectively.

Later in the week, other benchmark tycoons will be featured, including technology giants Microsoft (NASDAQ :), Apple (NASDAQ :), Alphabet (NASDAQ :), and European and Asian financial giants. Deutsche Bank From (DE :) and Lloyds (LON :) to China Construction Bank (OTC :) and Nomura.

“This week’s earnings will be a central stage,” Chris Weston, head of research at Melbourne securities firm Pepperstone, said in a morning note.

Nasdaq with Snap (NYSE :) on Friday Intel Corp The quarterly results of (NASDAQ :) were disappointing.

MSCI’s widest non-Japanese Asia-Pacific stock index has also recorded a rise in the last three weeks, and if it can be maintained this week, October will be the highest month of the 2022 benchmark.

Regional benchmarks were flat on Monday morning, rising 0.5% in Australia and down 0.6% in South Korea.

Losing 1%, the United States lost 0.18%.

Asian equities have fallen far behind US and European equities in recent months, primarily due to regulatory criticism and concerns over slowing growth in China.

In a recent announcement worried by some investors, the highest decision-making body of the Chinese parliament said it would roll out pilot real estate taxes in some areas on Saturday.

Citi analysts summarized the announcement as “earlier than expected, but slower than expected nationwide, with no catastrophic consequences.”

But as with rising energy prices that supported currencies such as stocks and the Canadian dollar, the risk-friendly mood that supported stocks weighs heavily on safe currencies.

It hovered near the monthly low of 93.455 hits last week and was the last at 93.667, well below the 12-month high in mid-October.

However, CBA analysts said the dollar was more likely to rise than it would fall from here.

“The dollar’s risk is still on the rise,” citing rising inflation expectations from markets, consumers and policy makers. This means that the market is pricing more aggressive rate hike programs to support the dollar.

The market is trying to position itself towards the still widely-anticipated taper of the gradual decline in US stimulus this year and the potential for rate hikes in the second half of 2022.

Federal Reserve Board Chair Jerome Powell said Friday that the process of reducing support for the economy by cutting asset purchases should begin, but interest rates should not be touched yet.

Benchmark yields in the US are rising as the taper approaches, with yields hitting a five-month high of 1.7064% last week. In early Asia, they were the last 1.6465%.

Oil prices continued to rise, but were slightly below their peaks in recent years. > LCOc1> rose 0.13% to $ 85.65 a barrel and rose 0.38% to $ 84.08 a barrel.

After recording a rise over the past two weeks due to rising inflation concerns, it rose 0.06% to $ 1793.4 an ounce.

Another asset, often described as an inflation hedge, was finally $ 61,080 after a turbulent week hit a new high of $ 67,016.

Asian stocks are stable and the dollar weakens as traders await profits Asian stocks are stable and the dollar weakens as traders await profits

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