Asian Stocks Drift; Treasuries Steady After Losses: Markets Wrap

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Photographer: Nicolas Asfouri/AFP via Getty Images

Photographer: Nicolas Asfouri/AFP via Getty Images

Asian stocks drifted Friday after a lackluster U.S. session as investors mulled the stalemate in stimulus talks in America and parsed signs of an economic recovery. Treasury yields steadied near an eight-week high.

Investors continue to bank on further fiscal stimulus to help the nascent recovery, after stock markets in the U.S. and Asia erased most of their pandemic-related losses. A report showed weekly jobless claims in the U.S. dropped below 1 million for the first time since March, but there are more Americans seeking work now than at the highest point after the 2008 financial crisis.

“Investors assumed that a deal would get done in early August. Now that this is not happening, it raises some risks for the economy,” said Matt Maley, chief market strategist at Miller Tabak & Co. “Therefore, investors are going back to focusing on what will work even if the economy sputters once again.”

Meanwhile, Floridas governor warned that more Covid-19 virus deaths may be coming at nursing homes and assisted-living facilities. Germany recorded the highest number of new cases in more than three months, as cases also rose in France, Greece and Spain.

Here are some key events coming up:

• China releases a slew of data for July on Friday, including industrial production and retail sales.

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• U.S.-China trade talks are expected in coming days.

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Mark Andersen, co-head of global asset allocation at UBS, discusses equity valuations, the U.S. economy and gold prices in an interview on “Bloomberg Surveillance.”

These are the market movers:

Stocks

• S&P 500 futures rose 0.1% as of 10:30 a.m. in Tokyo. The S&P 500 fell 0.2% Thursday.

• Japans Topix Index was little changed.

• Kospi Index fell 1.6%.

• Australias S&P/ASX 200 rose 0.2%.

• Hang Seng Index fell 0.6%.

• Shanghai Composite Index rose 0.2%.

Currencies

• The yen fell 0.1% to 106.99 per dollar.

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• The offshore yuan traded flat at 6.9477 per dollar.

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• The Bloomberg Dollar Spot Index was little changed.

• The euro bought $1.1805, down 0.1%.

Bonds

• The yield on 10-year Treasuries fell one basis point to 0.71% Thursday.

Commodities

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• West Texas Intermediate crude rose 0.1% to $42.27 a barrel.

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• Gold was little changed at $1,952 an ounce.

— With assistance by Ishika Mookerjee