SHANGHAI (Reuters) – Asian stocks turned between small losses and gains on Friday when investors were waiting for key Chinese trading and lending data and worries over Chinese and US trade tensions countered optimism with hopes for a Federal Reserve cut in month.
FILE PHOTO: Passerby passes by an electric display showing Asian market indices outside a broker in Tokyo, Japan on July 1, 2019. REUTERS / Issei Kato
Later on Friday, China will release June trading data, with analysts expecting exports has fallen as a weakening of global demand and a sharp rise in US tariffs took a heavier charge on the world's largest trading state.
China is also due to release lending data on Friday, while GDP figures for the second quarter are scheduled for Monday. The world's second largest economy is expected to have fallen to its weakest pace for at least 27 years, which increases the hopes of more stimulus to avert a sharp slowdown.
"You have important data coming out and I can't see why anyone would want to take a position until you have the data," said Michael Every, head of the financial market research at the Rabobank in the Asia-Pacific region of Hong Kong.
"We have a hell of a lot of signal coming through, but until we get the signal it is sound," he said.
MSCI's widest index for Asia-Pacific shares outside Japan. MIAPJ0000PUS was at last 0.1%. Chinese stocks rose, with the CSI300. CSI300, which gave 0.7%.
Australian stocks subdued 0.1% and Japan's Nikkei stock index. The N225 was higher after small early losses and increased by 0.14%.
South Korea's KOSPI .KS11 increased by 0.37%.
The study of the economic impact of global trade tensions grew Singapore's economy with its slowest pace for a decade in the second quarter, as the production of electronics production declined for a sixth month in May and as exports saw their biggest decline for more than three years.
In connection with the global slowdown, US Governor Jerome Powell on Thursday stated that a cut is likely at the Fed's next meeting.
The efforts for such a reduction remained strong despite an increase in US consumer inflation in June and helped lift the S & P 500 index by 0.23% on Thursday, ending at a record high of 2.999.91 points. .
Although the Nasdaq Composite .IXIC fell 0.08%, the Dow Jones Industrial Average .DJI also hit record highs of 27,088.08 points, rising 0.85% a day.
S & P 500 e-mini futures ESc1 lasted 0.24% at 3.011.25.
But a tweet by US President Donald Trump on Thursday where he said China did not live up to the promise to buy agricultural products from American farmers threatened to revive trade concerns.
"The markets have had a quiet place in the trade war between the United States and China since the announcement of a guardian and restart of trade negotiations at the G20 meeting. Unfortunately, the headlines are starting to return," ANZ analyst said on a morning note. was not a big market broker, it serves as a reminder that things can flare up again, "they said.
WEAK TREASURY AUCTION
US Treasury yields had jumped on Thursday after demand was weak for a 30-year bond auction $ 16 billion and after the US Department of Labor said the consumer price index excluding food and energy increased by 0.3% in June, the largest increase since January 2018.
The poorly received auction had driven 30-year returns as high as 2,682 % on Thursday, according to Refinitive data.
However, interest rates were slightly changed on Friday Benchmark 10-year government bonds US10YT = RR gave no later than 2,121%, an increase from the US at the end of 2.12% on Thursday, while the 30-year return affected 2,646%, amounting to close to 2,639%.
The two-year return US2YT = RR, which rises with traders' expectations of higher Fed funds, was flat at 1.8524%.
"The CPI report will have no significant impact on Fed guidance or have a significant influence on the big Fed debate around 25 or 50," says Stephen Innes, managing partner at Vanguard Markets Pte, with reference to expectations. on the size of a July cut.
"FOMC is undoubtedly willing to let inflation get warmer after spending the better part of a decade trying to ignite the flames," he said.
The dollar fell 0.05% against the yen to 108.43 JPY =, while the euro EUR = got 0.12% higher to buy $ 1.11265.
The dollar index .DXY, which tracks the greenback against a basket of six major rivals, was down 0.08% at 96.970.
Oil prices picked up as US oil producers in the Gulf of Mexico, cut by production by more than half, ahead of a tropical storm and tensions in the Middle East.
Global benchmark Brent crude LCOc1 received 0.60% to $ 66.92 per barrel. The US West Texas Intermediate (WTI) raw CLc1 was up 0.58% to $ 60.55 a barrel.
Gold prices, dumped by the stronger than expected US consumer prices, recovered their luster thanks to renewed trade barriers and rapid average expectations. Spot gold XAU = last traded up 0.28% at $ 1.407.60 per ounce.
Reporting by Andrew Galbraith; Editing by Shri Navaratnam and Richard Borsuk