Asian stocks were flat on Friday after US stocks and Treasuries rallied, with investors believing that a surge in inflation would likely be transient, giving way to continued central bank support.
Stocks rose slightly in Hong Kong and dipped in Japan and China. India’s SGX Nifty 50 index futures for June delivery rose 0.1% to 15,794.00, while the MSCI Asia-Pacific Index + 0.1%. The NSE Nifty 50 index rose 0.7% on Thursday to 15,737.75.
U.S. equity contracts surged higher after the S&P 500 surged to an overnight record and a tech rally that boosted the Nasdaq 100.
The 10-year US Treasury yield retained most of an earlier decline at 1.43%, its lowest point since March. The yield had briefly jumped at US hours on the above-expected gains in consumer prices. The dollar fell.
The increase in the CPI in the United States in May was largely driven by categories associated with a wider reopening of the economy, as vaccinations bring the pandemic under control. Despite some signs of greater pressure on prices, concerns about rising costs of long-term borrowing that could destabilize global markets have subsided.
Elsewhere, crude oil pared a rally while remaining around $ 70 a barrel. A move by international banking regulators to classify Bitcoin as the riskiest asset rocked virtual currency, but it remains stable for the week at around $ 36,250. Later Friday, investors will keep an eye on the opening of the Group of Seven leaders’ summit in the UK
Back home, SAIL, NHPC, National Fertilizers, eClerx could respond as companies released quarterly results after the market closed on Thursday. BHEL, Sun TV, DLF, Edelweiss are among the companies due to publish their results on Friday. The government will release April data on industrial production. Foreign investors bought shares net of Rs 598 crore on Wednesday, according to the NSDL website.