Asian equities are set for a varied start to Friday's session, reflecting a reevaluation of the previous day's optimism that drove shares up, as the US shows new signs of enduring inflation.
Futures in Japan saw an uptick, whereas those in Australia and Hong Kong experienced declines. This comes after a significant rally in the region's shares, reaching near two-year highs.
The S&P 500 increased by 0.3%, hitting a new peak, driven by industrials and banks. Reddit Inc. (REDDIT, Financial) shares jumped 48% on their first trading day, while other tech stocks like Apple Inc. (AAPL, Financial) and Alphabet Inc. (GOOGL, Financial) dropped amid rising regulatory scrutiny.
The US Justice Department, along with 16 attorneys general, is suing Apple Inc. (AAPL, Financial) for antitrust violations. In Europe, the tech giant faces investigations regarding compliance with the Digital Markets Act, leading to a more than 4% drop in its shares, erasing $115 billion in market value.
Recent US economic data suggests the Federal Reserve might reconsider its rate cut forecasts, with housing, manufacturing, and labor market indicators pointing to a strong economy. This could lead to a slower pace of rate reductions than anticipated by the market.
The data contributed to a decrease in Treasuries, with the two-year yield rising three basis points and the 10-year yield marginally increasing. The dollar index saw a 0.4% rise, while the yen remained stable at 151 per dollar.
Treasury Secretary Lawrence Summers commented on the Federal Reserve's eagerness to cut rates, suggesting it might be premature given the robust economy and vibrant financial markets.
Societe Generale SA (SCGLY, Financial) has raised its S&P 500 year-end forecast to 5,500 from 4,750, citing "US exceptionalism" and rational market optimism.
Central banks globally are in the spotlight, with the Swiss National Bank and Mexico's central bank both cutting interest rates. The Bank of England maintained its rate at a 16-year high, with signs it might be moving towards rate cuts.
Looking ahead, Asia anticipates the Reserve Bank of Australia's financial stability review, Japan's inflation data for February, and Taiwan's job figures for the same month.
Crude oil, natural gas, and gasoline futures all saw declines, while Bitcoin continued its downward trend, trading below $66,000. Gold prices also fell after previously surpassing $2,200 an ounce.
