(Bloomberg) — Asian shares wavered Friday as the spread of the delta Covid-19 variant and China’s regulatory curbs restrained sentiment despite another record high close on Wall Street.
Stocks fluctuated in Japan but slid in South Korea as virus cases climb and chip-sector prospects deteriorate. U.S. contracts were steady after the S&P 500 hit a fresh peak and the tech-heavy Nasdaq 100 rose. Airbnb Inc. slid in extended trading on a tough outlook for bookings due to the virus, while a surge in streaming demand boosted Walt Disney Co.
U.S. Treasury 10-year yields were near a one-month high amid a tepid 30-year auction and data highlighting price pressures and a labor market recovery. A gauge of the dollar advanced.
The focus in China remains on Beijing’s push to exert more control over a range of industries. In real estate, the nation is suspending private equity funds from raising money to invest in residential property development. Separately, a partial shutdown of a major Chinese port due to a virus outbreak stoked concerns about a repeat of last year’s pandemic shipping woes.
U.S. 10-year Treasury yields are set for a back-to-back weekly advance for the first time since March, hinting at a possible revival in the reflation trade linked to the vaccine rollout and economic reopening. Europe and the U.S. have pushed ahead with vaccinations and stocks there are hitting records, whereas Asia is struggling after lagging behind in inoculations.
“It’s really hard to keep people back, or put people back, in lockdown,” Ann Miletti, head of active equity at Wells Fargo Asset Management, said in an interview on Bloomberg Television. “There’s this pent up demand and I think we are going to start to see that surge happen again.”
Miletti added there remains a risk of a correction in equities after a prolonged period of calm.
The latest U.S. data showed prices paid to producers rose in July by more than expected, suggesting that higher commodity costs and supply bottlenecks are still adding to inflationary pressures for companies. Initial unemployment claims fell for a third week and home prices rose by a record.
Oil dipped as traders grappled with the impact of the delta variant on demand. In agricultural commodities, a prospective squeeze on global grain supplies is reigniting a rally in crop prices. Bitcoin was around $44,600.
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These are the main moves in markets:
S&P 500 futures were steady as of 10:10 a.m. in Tokyo. The S&P 500 rose 0.3%Nasdaq 100 futures shed 0.1%. The Nasdaq 100 rose 0.4%Japan’s Topix index rose 0.1%Australia’s S&P/ASX 200 Index added 0.5%South Korea’s Kospi fell 1.6%
The Bloomberg Dollar Spot Index was steadyThe euro was little changed at $1.1735The Japanese yen was at 110.41 per dollarThe offshore yuan was at 6.4810 per dollar
The yield on 10-year Treasuries dipped about one basis point to 1.35%Australia’s 10-year bond yield climbed about three basis points to 1.21%
West Texas Intermediate crude fell 0.6% to $68.68 a barrelGold was at $1,752.71 an ounce
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