- Euro Climbs Along With Oil as Japan Stocks Decline
The euro spiked higher as the dollar weakened for a second day and oil advanced in thin end-of-year trading. Japanese stocks headed toward their first annual loss since 2011 while Hong Kong shares rallied.
The Bloomberg Dollar Spot Index shifted lower after reaching the highest level in more than a decade earlier this week. Oil was poised for its first annual advance in three years. The Nikkei 225 Stock Average’s gain for the year largely evaporated, while Hong Kong shares turned positive for 2016. The S&P 500 Index ended little changed Thursday following the announcement of new American sanctions against Russia over election hacks.
Trading has been thin across the globe during the last week of the year, with volumes in crude oil, equities and currencies all below average. Investors may be reallocating money as they assess asset moves in the wake of the U.S. election that took the dollar to multi-year highs, sent Treasuries tumbling and spurred a rally in American equities.
“Asian markets could see another day of mixed performances on the final trading day of the year with little inspiration for price direction,” said Jingyi Pan, a market strategist at IG Asia Pte. “The market is likely to be repositioning for the New Year with U.S. markets and that could place some pressure on markets that have underperformed lately.”
Currencies
- The euro rallied as much as 1.6 percent before paring its advance to 0.4 percent and trading at $1.0527 as of 12:56 p.m. in Tokyo.
- The yen fell 0.1 percent to 116.70 per dollar, erasing an earlier advance of 0.4 percent. The currency was up more than 20 percent for the year in August, but has pared that to 3.2 percent.
- The Bloomberg Dollar Spot Index slipped 0.2 percent after dropping 0.5 percent Thursday, although it remains up 2.9 percent for the year.
Stocks
- The MSCI Asia Pacific Index rose 0.1 percent, heading for a 2.3 percent advance for the year, its first annual gain since 2013. Pakistan was the region’s best market in 2016, jumping 45 percent, while China was set for the worst performance.
- Japan’s Topix fell 0.1 percent and is poised for a 2 percent decline in 2016. The Nikkei 225 index was down 0.2 percent Friday, almost wiping out a gain for the year.
- Australia’s S&P/ASX 200 Index dropped 0.6 percent, paring its annual gain to 7 percent, while New Zealand’s S&P/NZX 50 was off 0.2 percent. South Korea is closed for a holiday. The Kospi Index finished Thursday with a 3.3 percent advance for 2016.
- Hong Kong’s Hang Seng Index rose 0.9 percent, wiping out its losses for the year. The Shanghai Composite Index added 0.1 percent, paring its yearly decline to 12.5 percent. The Hang Seng China Enterprises Index jumped 1 percent, trimming its annual loss to 2.8 percent.
- The S&P 500 fell less than one point to 2,249.26 Thursday, the lowest close since Dec. 8. It is up 10 percent for the year. The Dow Jones Industrial Average slipped to 19,819.78, maintaining a 14 percent advance this year.
- The Stoxx Europe 600 Index lost 0.4 percent after closing Wednesday at the highest level in a year. The gauge is down 1.5 percent for 2016.
Commodities
- Crude futures gained 0.1 percent to $53.83 a barrel, after Thursday’s 0.5 percent decline. Prices are up about 45 percent this year. Supply cuts from OPEC and other producing nations next month are intended to stabilize the market and reduce swelling global inventories.
- Gold rose for a fifth session Friday, adding 0.1 percent to $1,159.15 an ounce. The metal has rebounded 2.8 percent from an 11-month low, and is up more than 9 percent for the year.
Bonds
- The yield on 10-year Treasury notes was little changed at 2.47 percent after dropping three basis points Thursday. It slid to 2.46 percent earlier in the week, the lowest since Dec. 14.
- The equivalent Australian yield was down one basis point at 2.77 percent, while the yield on similar New Zealand notes dropped five basis points to 3.33 percent.
