Amazon is helping to hold on to stocks, but forecasts of a rate hike are above Reuters

Author: Kanupriya Kapoor

SINGAPORE (Reuters) – Asian stock markets battled for strength on Friday, backed by a rebound in the future for the US, but a rise in oil prices hit a seven-year high as traders see rising interest rates ahead of global inflation. pressures.

MSCI’s broadest Asia-Pacific stock index rose 0.4% outside of Japan, rising 1.5% on the first trading day after this week’s New Year’s holiday. Down 0.4%.

Christine Lagarde, President of the European Central Bank, said that the euro was the biggest jump in the euro in more than a year, leaving the door open for a rate hike this year and that inflation was warming more than expected.

The Bank of England raised rates to 0.5% and almost half of its political leaders wanted a higher increase. He had his worst day in almost a year. [.N]

“We are seeing an environment that is really changing the attitude of central banks, which were so entrenched in the first growth territory, but are now rapidly changing to fight inflation,” said Rob Carnell, chief economist at ING Singapore.

The Federal Reserve’s rhetoric has been undergoing a hawkish change in recent months, and the partner has applied it to bonds and growth stocks – leaving Facebook (NASDAQ 🙂 owner with little room to despair on Meta Platforms.

Meta fell more than 26% on Thursday, losing more than $ 200 trillion in market capitalization when a U.S. company had its highest single-day value. The Nasdaq fell 3.7%, the worst day in 17 months.

However, Amazon (NASDAQ 🙂 had better-than-expected earnings after the bell and shares rose 17% in hours after trading – up 1.7% and strengthening Asian sentiment.

Shares of Snap (NYSE 🙂 and Pinterest (NYSE 🙂 also rose in extended trading after strong quarterly reports, and Twitter (NYSE 🙂 also jumped, reversing some previous losses.

JUMP YIELD

However, the backdrop is under pressure from rate hikes, analysts say will make it unlikely that the U.S. job data will come down even if it is relatively weak later on Friday, as economists expect.

Earnings in Europe jumped overnight after the evolution of the ECB, with benchmark gains rising 12 basis points (bps) to a three-year high of 0.155%.

Profits for two years rose by 14 bps to 0.322%, well above the ECB’s policy rate of 0.50%. In the UK, the BoE is pushing for further increases, with two-year gilts rising more than 10 bps to an 11-year high of 1.169%. [GB/]

Anchored Japanese government bonds also rose six-year highs on Friday, bringing the five-year yield to zero as investors sought to keep the Bank of Japan afloat and tighten policy.

Treasuries also sold overnight and remained stable in Asia, with a two-year return of 1.2179% and a 10-year return of 1.814%. [US/]

In the currency markets, the rise of the euro led to a three-week high of $ 1.1451, and it is facing the worst barrel in almost two years, with a drop of more than 2% so far this week. [FRX/]

An anti-risk mood has kept the trade-related currencies in check, however, and the Australian dollar was last stable at $ 0.7140 and $ 0.67673.

It rose 0.45% and sold more than $ 90 a barrel since 2016 because of the cold weather threatening to disrupt supply, and rose 0.43% to $ 91.48 per barrel. [O/R]