Stocks in Asia will start the week firmer; mixed dollar

Bloomberg – Stocks will open on Monday with a high After the US posted its best week since November 2020, traders debate whether the end of the sell-off is near.

Futures rose in Japan and Australia, as well as in Hong Kong earlier. The S&P 500 erased losses in May and snapped a streak of seven weekly losses as institutional investors rebalanced portfolios through the end of the month. US markets will be closed on Monday for a holiday.

The dollar traded within narrow ranges against the major currencies and the volatility of the euro, Because the EU failed to agree on a revised package of Russian sanctions.

In China, Shanghai offered some corporate tax cuts and All manufacturers were allowed to resume operations from Junewhere authorities have implemented dozens of policies to revitalize the economy affected by the Covid lockdowns.

Investors were buying on the dip after one of the worst starts of the year for stocks. However, a wall of fear remains from hawkish central banks underlining fears of a recession, rising food inflation from the war in Ukraine and a Chinese shutdown of economic activity.

“Stocks have yet to see clear signs of a dull bottomShane Oliver, chief investment strategist and chief economist at AMP Capital, said in a note. “The bottom line is that while we remain optimistic that a recession will be avoided in the next 18 months, and so stocks may rise according to the 6-12 month forecast, they remain at risk of further declines.”

Global equity funds saw their biggest inflows in 10 weeks, Led by US stocks, according to a Bank of America note citing EPFR data.

Some of the main movements in the markets:

Procedures:

• The S&P 500 rose 2.5%.
• The Nasdaq 100 is up 3.3%.
• Nikkei 225 futures rose 1.1%
• Australia’s S&P/ASX 200 index futures rose 1.2%.
• Hang Seng futures gained 0.5% earlier

Currency exchange rate:

• Bloomberg spot dollar index down 0.3%.
• The Japanese yen remained unchanged at 127.09 per dollar
• The euro changed little at 1.0738 dollars

Rewards:

• The 10-year Treasury yield fell one basis point to 2.74% on Friday.

Raw materials:

• West Texas Intermediate crude rose 0.9 percent to $115.07 a barrel.
• Gold, at $1,853.72 an ounce