Asian stocks and U.S. equity futures stabilized Friday after Wall Street sagged amid robust U.S. economic data that stoked concerns about a pullback in central bank stimulus. Treasury yields and the dollar held gains. Shares pared losses in Japan and turned higher in China and Hong Kong. S&P 500 and Nasdaq 100 futures were little changed after the gauges fell overnight but came off lows on signs President Joe Biden may be willing to compromise on corporate taxes. Strong U.S. jobs data and record service-sector growth underscored the recovery from the pandemic.
China’s markets weathered Biden’s order amending a ban on U.S. investment in Chinese companies. The order named 59 firms with ties to China’s military or in the surveillance industry, including Huawei Technologies Co. Gold remained lower after coming under pressure as yields and the dollar pushed higher, while the rally in crude oil has stalled. Meme stocks including AMC Entertainment Holdings Inc. had another volatile U.S. session. Bitcoin dipped after a cryptic Elon Musk tweet hinting at a split with the token.
Global stocks are trading in tight ranges as traders weigh the economic recovery as well as risks from faster inflation. The monthly U.S. payrolls report Friday could be a source of volatility if the data deliver a surprise. St. Louis Fed President James Bullard said the labor market might be tighter than the current unemployment rate suggests.
S&P 500 futures were steady as of 12:40 p.m. in Tokyo. The index shed 0.4%Nasdaq 100 contracts declined 0.1%. The gauge dropped 1.1%Japan’s Topix index lost 0.1%Australia’s S&P/ASX 200 index added 0.3%South Korea’s Kospi index shed 0.3%Hong Kong’s Hang Seng index rose 0.2%China’s Shanghai Composite index increased 0.1%
The Bloomberg Dollar Spot Index rose less than 0.1%The euro was at $1.2118The Japanese yen traded at 110.19 per dollar, rising 0.1%The offshore yuan was at 6.3997 per dollar
The yield on 10-year Treasuries held at 1.63%Australia’s 10-year yield increased three basis points to 1.69%
West Texas Intermediate crude was at $68.80 a barrelGold was at $1,870.60 an ounce