Asian Stocks Rise, Dollar Falls With Data in Focus: Markets Wrap

Most stocks in Asia gained and the dollar weakened as investors digested mixed corporate earnings and economic data.

(Bloomberg) — Most stocks in Asia gained and the dollar weakened as investors digested mixed corporate earnings and economic data.

Shares opened higher in Japan amid optimism about corporate earnings, and were little changed in South Korea. Futures for Hong Kong stocks dropped while Australia’s financial markets are shut Tuesday for a holiday. 

US equity futures were flat in Asia after the S&P 500 gained just 0.1% Monday and the tech-heavy Nasdaq 100 fell 0.2%. That extended to seven the number of trading days when the two indexes have both moved less than 1%.

The dollar dropped for a fourth day, weakening against most of its Group-of-10 peers. Treasury yields edged lower in early Asian trading after those on 10-year notes fell eight basis points Monday, the biggest one-day decline since March. 

The CBOE VIX index of equity volatility remained near the 17-month low reached last week. JPMorgan Chase & Co. strategist Marko Kolanovic said that may spell trouble for stock investors as it gives a false sense of calm.

Investors trimmed bets on US interest-rate hikes, according to futures. Market pricing now indicates rates will sit below 4.5% by year-end after peaking in June.

“The Fed is going to continue to feel they can be restrictive as long as the economy continues to be this robust,” Shana Sissel, president and CEO of Banrion Capital Management, said on Bloomberg Television. “A lot of hedge funds are positioning because they think rates are going to increase. I’m in that same camp.”

The small shifts in Fed pricing underscore the lack of direction at the start of a busy week for economic data and corporate earnings. US manufacturing data was weaker than economists forecast and uncertainty over the debt ceiling persisted. Later this week, US GDP data is forecast to reveal slower growth, and the so-called core PCE deflator, the Fed’s preferred inflation gauge, is expected to show price growth cooled. 

The South Korean economy grew more than forecast in the first quarter, according to data released Tuesday, giving the central bank breathing room to assesses the impact of policies on growth and inflation.

First Republic Bank plans to cut as much as a quarter of its workforce and shrink its balance sheet after deposits fell more than expected. UBS Group AG shares climbed after takeover target Credit Suisse AG reported outflows that were lower than some analysts predicted. Microsoft Corp., Meta Platforms Inc. and Inc. report later this week.

In commodities, oil was little changed and gold rose.

Key events this week:

  • US new home sales, consumer confidence, Tuesday
  • Australia CPI, Wednesday
  • Sweden rate decision, Wednesday
  • Eurozone economic, consumer confidence, Thursday
  • US initial jobless claims, GDP, Thursday
  • Bank of Japan meets on interest rates, Friday
  • Euro-area GDP, Friday
  • US personal income, Friday

Earnings highlights:

  • Tuesday: Pepsi, General Motors, General Electric, McDonalds, Microsoft, UBS, UPS
  • Wednesday: Boeing, Meta, Hilton
  • Thursday: Amazon, American Airlines, Intel, Mastercard, Southwest Airlines, Hershey, Honeywell, Barclays

Some of the main moves in markets:


  • S&P 500 futures were little changed as of 9:35 a.m. Tokyo time. The S&P 500 rose 0.1%
  • Nasdaq 100 futures were little changed. The Nasdaq 100 fell 0.2%
  • Japan’s Topix index rose 0.8%
  • South Korea’s Kospi index rose 0.1%
  • Hong Kong’s Hang Seng futures fell 0.4%


  • The Bloomberg Dollar Spot Index fell 0.1%
  • The euro rose 0.1% to $1.1058
  • The Japanese yen was little changed at 134.15 per dollar
  • The offshore yuan was little changed at 6.8979 per dollar
  • The Australian dollar was little changed at $0.6699


  • Bitcoin was little changed at $27,470.82
  • Ether rose 0.1% to $1,842.43


  • The yield on 10-year Treasuries declined one basis point to 3.48%


  • West Texas Intermediate crude was little changed
  • Spot gold rose 0.4% to $1,996.57 an ounce

This story was produced with the assistance of Bloomberg Automation.

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