Asian Stocks Fluctuate, Dollar Dips After US Data: Markets Wrap
(Bloomberg) — Stocks in Asia drifted at the start of the week as traders refrained from making riskier bets after lackluster economic data spurred a selloff in Wall Street. The dollar declined against its peers, notably the euro.
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Benchmarks in Hong Kong and mainland China traded in tight range while a gauge of Asian equities edged lower after hitting a four-month high Friday. US equity index futures advanced, as did contracts on Germany’s benchmark stock index after the conservative party came in first in the country’s federal election.
The prospects for artificial intelligence has fueled a rally in Chinese technology stocks, ofsetting the risks from US tariffs and shifting wagers on Federal Reserve policy easing. Data late last week showed US inflation expectations rising to the highest level in almost three decades, while US business activity expanded at the slowest pace since September 2023.
“We could see more upside for Hong Kong and Chinese markets,” said Vasu Menon, managing director for investment strategy at Oversea-Chinese Banking Corp. Investors are hoping for more Chinese economic stimulus, and “on top of that you’ve got Xi Jinping warming up to corporate leaders.”
Chinese tech shares have staged a bull run this year, driven by optimism over DeepSeek and Xi’s meeting with major business leaders, including Alibaba Group Holding Ltd. co-founder Jack Ma.
Treasury futures slipped on Monday. There was no cash Treasuries trading in Asia, as Japan’s markets were closed for a holiday on Monday.
A gauge of the dollar weakened during early Asian trading. The euro outperformed among Group of 10 currencies, up 0.5% against the dollar after Germany’s conservative leader Friedrich Merz said he’ll move quickly to form a new government following Sunday’s federal election victory.
“Dollar enthusiasm has waned somewhat due to a plethora of factors including gyrations on tariff headlines (and postponed deadlines), modestly negative US economic surprises and declining equity market volatility,” Barclays Plc analysts led by Audrey Ong wrote. “While US equities remain around record highs, there are also growing questions about sustainability of US exceptionalism.”
In Asia, diagnostic kits and vaccine maker shares climbed as researchers in China said they discovered a new coronavirus in bats that enters cells using the same gateway as the virus that causes Covid-19.
Tariff Tensions
Chinese Vice Premier He Lifeng expressed “serious concern” over President Donald Trump’s 10% tariff hike on Chinese goods in a call with Treasury Secretary Scott Bessent, China Central Television reported Friday. For his part, Bessent also signaled concerns on a host of issues with China, including “economic imbalances,” the US Treasury said.
The Trump administration told Mexican officials that they should put their own duties on Chinese imports as part of their efforts to avoid tariffs threatened by the US president, according to people familiar with the matter.
Separately, Trump is directing the Committee on Foreign Investment in the United States to restrict Chinese spending on technology, energy and other strategic US sectors, his administration’s latest salvo against the world’s second-largest economy.
In corporate news, Berkshire Hathaway Inc. is looking to increase ownership in Japan’s five largest trading houses “over time,” Warren Buffett said in an annual letter to shareholders.
In commodities, oil held a decline as the prospect of increased supply from Iraq weighed on prices. Gold traded just shy of last week’s all-time high as unexpectedly weak economic data and rising expectations for inflation helped boost haven demand.
Key events this week:
Eurozone CPI, Monday
Israel rate decision, Monday
Singapore CPI, Monday
BOE Deputy Governors Clare Lombardelli and Dave Ramsden speak, Monday
Germany GDP, Tuesday
South Korea rate decision, Tuesday
Taiwan industrial production, Tuesday
US consumer confidence, Tuesday
ECB Governing Council member Joachim Nagel delivers Bundesbank’s annual report, Tuesday
Richmond Fed President Tom Barkin speaks, Tuesday
Taiwan GDP, Wednesday
Thailand rate decision, Wednesday
US new home sales, Wednesday
Nvidia earnings, Wednesday
G-20 finance ministers and central bank governors meet in Cape Town though Feb. 27, Wednesday
Atlanta Fed President Raphael Bostic speaks, Wednesday
Brazil unemployment, Thursday
Eurozone consumer confidence, Thursday
Mexico unemployment, trade balance, Thursday
Spain CPI, Thursday
US GDP, durable goods, initial jobless claims, Thursday
ECB publishes account of Jan. 29-30 policy meeting, Thursday
Canada GDP, Friday
Chile industrial production, unemployment, Friday
France CPI, GDP, Friday
Germany CPI, unemployment, Friday
India GDP, Friday
Japan Tokyo CPI, industrial production, retail sales, Friday
US PCE inflation, income and spending, Friday
Chicago Fed President Austan Goolsbee speaks, Friday
Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.5% as of 11:46 a.m. Tokyo time
Nikkei 225 futures (OSE) fell 1.3%
Australia’s S&P/ASX 200 was little changed
Hong Kong’s Hang Seng rose 0.3%
The Shanghai Composite was little changed
Euro Stoxx 50 futures rose 0.5%
Currencies
The Bloomberg Dollar Spot Index fell 0.4%
The euro rose 0.7% to $1.0526
The Japanese yen was little changed at 149.31 per dollar
The offshore yuan rose 0.2% to 7.2382 per dollar
Cryptocurrencies
Bitcoin rose 0.1% to $95,894.82
Ether fell 0.8% to $2,784.57
Bonds
Commodities
This story was produced with the assistance of Bloomberg Automation.
