Stocks gain, bonds calm as Fed outlook trumps Moody’s downgrade By Reuters

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<span>© Reuters. FILE PHOTO: Passersby are reflected on an electric stock quotation board outside a brokerage in Tokyo, Japan April 18, 2023. REUTERS/Issei Kato/File Photo</span><br />
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<p>By Kevin Buckland</p>
<p>TOKYO (Reuters) – Stocks in Asia rose on Monday while Treasuries and the dollar kept their composure, as investors took their lead from Wall Street’s Friday rally, shrugging off a Moody’s (NYSE:) downgrade to the U.S. credit outlook.</p>
<p>Tech stocks stood out, as they had in the U.S. at the end of last week, after the calming of long-term Treasury yields since the start of this month boosted the outlook for borrowing-dependent growth shares.</p>
<p> were stable at around 4.646%, consolidating around the top of their range since Nov. 3, when softer labour market data spurred bets for a less hawkish Federal Reserve. The yield had been as high as 4.935% on Nov. 1.</p>
<p>The hovered below its post-payrolls-report high of 106.01, reached on Friday, last trading little changed around 105.80.</p>
<p> rose 0.46%, with chip-related shares providing the biggest boost. Taiwan’s tech-heavy equity benchmark rallied 1.17%.</p>
<p>Hong Kong’s gained 0.49% amid an outperformance in tech shares.</p>
<p>However, mainland Chinese blue chips were slightly lower, and Australia’s resource-heavy benchmark slipped 0.13%.</p>
<p>Nomura Securities strategist Naka Matsuzawa said equities are likely close to a peak.</p>
<p>“Up until now the market has been taking bad economic news as good news, because that would mean a pause in Fed rate hikes,” he said.</p>
<p>“But now, the Treasury market has already priced in a pause, so there’s not much room for Treasury yields to fall further,” removing a support for the stock market, he added. “In short, I don’t think the stock market rally is going to continue.”</p>
<p>The market paid little attention to a Moody’s announcement late on Friday that it had lowered its outlook on the U.S. credit rating to “negative” from “stable”. </p>
<p>The focus instead remains on upcoming economic data, with readings of U.S. consumer prices and retail sales due Tuesday and Wednesday, respectively.</p>
<p>Meanwhile, prices eased on Monday as demand worries trumped supply concerns, amid slowing growth in the United States and China. [O/R]</p>
<p> futures for January were down 35 cents, or 0.4%, at $81.08 a barrel, while the U.S. West Texas Intermediate (WTI) crude futures for December were at $76.82, down 35 cents, or 0.5%.</p>
<p>Both benchmarks gained nearly 2% on Friday as Iraq voiced support for oil cuts by OPEC+. </p>
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<br /><a href="https://www.investing.com/news/stock-market-news/stocks-gain-bonds-calm-as-fed-outlook-trumps-moodys-downgrade-3231608">Source link </a></p><p>The post <a href="https://forextraderhub.com/stocks-gain-bonds-calm-as-fed-outlook-trumps-moodys-downgrade-by-reuters.html">Stocks gain, bonds calm as Fed outlook trumps Moody’s downgrade By Reuters</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>