- Asian stocks are set for a muted open Tuesday as traders weigh a record breaking run at the S&P 500 against concerns the delta virus variant will choke global growth. Treasuries and the dollar increased.
Futures edged up in Hong Kong and were little changed in Japan and Japan. U.S. equity contracts fluctuated after the S&P 500 closed at another all-time high, doubling its pandemic low in March 2020. Health-care and utility companies advanced, while Apple Inc. hit a record. Tesla Inc. pulled down on an investigation into the electric-vehicle firm's Autopilot system.
Mobility curbs to fight the fast-growing delta variant, signs of a slowing recovery from the pandemic in China and Beijing's regulatory crackdown on private enterprise continue to color the market mood in Asia.
Treasury yields increased on worsening virus trends in some U.S. states as the chaotic situation in Afghanistan spurred pockets of investor caution. Traders awaiting an address from Federal Reserve Chair Jerome Powell on Tuesday and Jackson Hole Symposium in late August for clues on when and how the U.S. central bank will taper stimulus.
While the S&P 500 is on track for one of the calmest months ever, a measure of implied volatility in VIX options has advanced for five out of seven weeks - even though CBOE Volatility Index kept falling - suggesting disquiet among investors for what lies ahead. Risks include slower growth due to the delta strain, the impact of lowered inflation and the prospect for lower central bank support.
Boston Fed President Eric Rosengren said he would be supportive of announcing a start to the Fed taper in September if the U.S. get another strong labor-market report.
The announcement of Declining is unlikely to create a large shock in the market, Sebastien Galy wrote in a note by Nordea Investment Funds as senior macro strategist. The market simply had a long time to prepare for tapering. When the debate on a cycle of Fed rate hikes starts, the real shock will come.
Elsewhere, oil held a drop and gold maintained a recent advance. Bitcoin traded around $46,000.
U.S. Fed Chair Powell hosts a town hall discussion with educators TuesdayChina's top legislative body, the National People's Congress Standing Committee, begins a four-day meeting in Beijing to begin his Thursday meeting retail sales are due TuesdayReserve Bank of New Zealand minutes are scheduled to be released TuesdayReserve Bank of Australia policy decision and briefing by Governor Perry Warjiyo ThursdayFOMC minutes released WednesdayBank Indonesia rate decision and Governor Adrian Orr briefing Thursday.
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Some big moves in markets:
Stocks of S&P 500 futures had fallen 0.1% in Tokyo at 7 : 05 a.m. on 1 February 2016. The Nasdaq 100 futures rose 0.3% S&P 500 futures increased. The Nasdaq 100 was little changedNikkei 225 Futures rose 0.7% Australia's S&P ASX 200 Index futures rose 0.1% Hang Seng Index futures rose 0.1% earlier.
The Japanese yen was at 9.25 per dollarThe offshore yuan was at 6.4765 per dollarThe Bloomberg Dollar Spot Index rose 0.1% The euro was at $1.1778 Per Dollar
The yield on 10 year treasuries decreased one basis point to 1.27%.
West Texas Intermediate crude was at $67.46 a barrelGold was at $1,787. 20 an ounce Brent crude was $75,000 a barrel Gold was in the $897.20 range.