Cocktail of Risks Boosts Demand for Safest Bonds - Asia Market Wrap
Government bonds gained as investors sought safer assets amid concerns over credit markets, elevated commodity prices and political uncertainty in France. Sovereign debt rose across Japan, Australia and New Zealand, while Treasuries held most of Thursday’s gains and the Dollar headed for a third weekly advance. European bonds remained under pressure as concerns over France’s fiscal and political outlook pushed risk premiums higher. French bond futures hovered near record lows, while German yields rose for a fourth day and long-dated UK gilt yields briefly climbed above 6%. Asian equities were on course for their weakest week since July, while European stocks headed for their worst week since April. Brent held above $102 a barrel after a two-day gain, while iron ore futures extended losses and copper was set for its biggest weekly decline since May. Markets remained focused on elevated inflation, energy prices and tensions between Washington and Tehran, with Friday’s US jobs report seen as a key test for the Fed outlook. Economists expect nonfarm payrolls to rise by 90,000 in September, with unemployment seen holding at 4.1%. Elsewhere, Asian stocks fell around 0.6% while US equity
Government bonds gained as investors sought safer assets amid concerns over credit markets, elevated commodity prices and political uncertainty in France. Sovereign debt rose across Japan, Australia and New Zealand, while Treasuries held most of Thursday’s gains and the Dollar headed for a third weekly advance. European bonds remained under pressure as concerns over France’s fiscal and political outlook pushed risk premiums higher. French bond futures hovered near record lows, while German yields rose for a fourth day and long-dated UK gilt yields briefly climbed above 6%.
Asian equities were on course for their weakest week since July, while European stocks headed for their worst week since April. Brent held above $102 a barrel after a two-day gain, while iron ore futures extended losses and copper was set for its biggest weekly decline since May. Markets remained focused on elevated inflation, energy prices and tensions between Washington and Tehran, with Friday’s US jobs report seen as a key test for the Fed outlook. 1%.
6% while US equity futures edged higher after another volatile Wall Street session. Hong Kong shares posted their biggest decline since March after reopening from a holiday, with HSBC falling almost 5% as higher yields and potential UK tax increases weighed on sentiment.