(Bloomberg) — Asian stocks gained as a boost in Taiwan Semiconductor Manufacturing Co. helped boost the region’s underlying stock index. The euro fell on worries about France’s post-election finances.
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The MSCI Asia Pacific share index rose 0.4%, with heavyweight TSMC advancing to a record after Morgan Stanley raised its price target for the company. It was boosted by Friday’s US payrolls data that supported the case for the Federal Reserve to focus on cutting interest rates.
Losses in the euro were softened by news that no French political party won the majority needed to govern in Sunday’s second round of voting. The result potentially limits the influence of the left-wing coalition of the New Popular Front and Marine Le Pen’s National Rally, both of which support increased public spending.
Bitcoin fell with other cryptocurrencies on concern over possible token sales by creditors of failed exchange Mt. Gox. In China, the central bank sought to take more control over market interest rates by announcing additional open market operations and tightening the band within which short-term rates can fluctuate.
Boeing Co. agreed to plead guilty to criminal conspiracy to defraud the U.S. after the Justice Department concluded the planemaker failed to adhere to an earlier agreement stemming from two crashes of its 737 Max jet.
France was a big focus for investors early Monday. The New Popular Front, which includes the Socialists and the far-left France Unbowed, won 178 seats in the National Assembly, according to data compiled by the Interior Ministry. The National Rally, which pollsters last week had seen winning the election, came third with 143, while President Emmanuel Macron’s centrist alliance scored 156.
French government bond futures did not underperform their German counterparts, although in a sign of waning concern, the gap between the two has started to narrow.
“We see the outcome as broadly market-friendly, with the risks associated with the National Rally disappearing for now and the left/far-left NFP will be far from a majority with essentially no prospect of being able to implement the agenda of the agreed alliance. Krishna Guha, a strategist at Evercore ISI, wrote in a note to clients.
For the remainder of the week, events in the US are likely to shape trade.
Federal Reserve Chairman Jerome Powell’s congressional testimony and US inflation data are among the main events this week. Traders will be looking for both to tighten policy easing that could start as early as September, amid signs the US economy is weakening based on the latest jobs report.
The prospect of a Fed interest rate cut in the coming months got a boost on Friday after non-farm payrolls data showed US employment and wage growth eased in June, while the jobless rate rose to a record high. high since the end of 2021.
Earnings from major US banks including JPMorgan Chase & Co. are also payable, as well as rate rulings in New Zealand and South Korea.
President Joe Biden faces a new round of threats from members of his own party as he seeks to salvage his struggling re-election bid and fend off calls from Democratic lawmakers to quit. Biden posted his best showing yet in a Bloomberg News/Morning Consult tracking poll of battleground states, even as pollsters offered poor reviews of his debate performance.
In commodities, gold and oil recorded steady growth. In the case of the latter, traders tracked the twin threats to production caused by a storm in the US and wildfires in Canada.
This week’s highlights include:
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Indian Prime Minister Narendra Modi visits Moscow on Monday
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Fed Chairman Jerome Powell gives semiannual testimony to the Senate Banking Committee on Tuesday
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US Treasury Secretary Janet Yellen testifies before the House Financial Services Committee on Tuesday
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Fed Vice Chairman for Supervision Michael Barr, Governor Michelle Bowman speak on Tuesday
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China PPI, CPI, Wednesday
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Japan PPI, Wednesday
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Fed Chairman Jerome Powell testifies before the House Financial Services Committee on Wednesday
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Chicago Fed President Austan Goolsbee and Fed Governor Michelle Bowman speak on Wednesday
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BOE chief economist Huw Pill, BOE policymaker Catherine Mann speak on Wednesday
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US CPI, initial jobless claims, Thursday
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Atlanta Fed President Raphael Bostic and St. Louis Fed President Louis, Alberto Musalem speak
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Japan’s industrial production, Friday
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Trade with China, Friday
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US University of Michigan Consumer Sentiment, PPI, Friday
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Citigroup, JPMorgan, Wells Fargo and Bank of New York Mellon report quarterly earnings on Friday
Some of the main movements in the markets:
INVENTORY
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S&P 500 futures were down 0.1% at 1:15 p.m. Tokyo time
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Nikkei 225 futures ( OR ) rose 0.6%
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Japan’s Topix fell 0.1%
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Australia’s S&P/ASX 200 fell 0.6%
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Hong Kong’s Hang Seng fell 1.3%
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Shanghai Composite fell 0.5%
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Euro Stoxx 50 futures rose 0.3%
currencies
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The Bloomberg Dollar Spot Index is little changed
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The euro is little changed at $1.0831
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The Japanese yen rose 0.1% to 160.55 per dollar
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The offshore yuan was unchanged at 7.2889 per dollar
Cryptocurrencies
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Bitcoin fell 3.6% to $55,226.86
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Ether fell 3.7% to $2,888.55
BONDS
wares
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West Texas Intermediate crude fell 0.3% to $82.94 a barrel
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Gold in the country fell 0.3% to $2,383.98 an ounce
This story was produced with the help of Bloomberg Automation.
This story was produced with the help of Bloomberg Automation.
–With assistance from Michael G. Wilson, Matthew Burgess and Ivy Chok.
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