Asian stocks and US futures rise on technology hopes

Bloomberg – Asian stocks rose along with US stock futures on the rising hopes of lawmakers in Washington. Avoid defaulting on America.

Stocks rose in Japan, Australia and South Korea. Topix’s advance put a gauge of Japanese stocks on track for its best week since November and a new high in 33 years. Hong Kong futures fell after disappointing sales at Alibaba Group Holdings Limited, In addition to the signs of a faltering recovery in China in the post-Crimea period.

S&P 500 rose after the index closed Thursday at a nine-month high. Nasdaq 100 futures also rose after the technology index gained about 2%. In a rally that sent Wall Street’s fear index lower, the Cboe’s Volatility Index.

Bond yields rose in Australia and New Zealand and Treasurys held steady The aftermath of Thursday’s sell-off sent interest rates higher on speculation the Fed will have to keep borrowing costs higher for longer as inflation continues to rise. The dollar index barely changed after posting its biggest gain in two months in the previous session.

“The moderation of inflation from 9% at its peak to 5% in the latest issue allows the Fed to pause,” Pelita Ong of Dalton Investments said in an interview with Bloomberg TV. “Especially when combined with the weakness we’ve seen in employment data, as well as bank failures that seem to have led to a tightening of credit conditions.”

House Speaker Kevin McCarthy and Senate Majority Leader Chuck Schumer plan to vote in the coming days Bipartisan agreement to prevent default on US debt. Treasury Secretary Janet Yellen told senior bank executives that not raising the debt ceiling would be “catastrophic” for the financial system, stressing that the matter must be addressed without delay.

In Asia, the yen rose slightly after Japanese inflation picked up again in April after months of calm. This may keep alive speculation that the central bank may have to revise its price forecasts, after lowering expectations of policy normalization in the previous session sent the currency touching its weakest level this year against the dollar.

Meanwhile, stock volumes in China and Hong Kong have been shrinking as attention returns to the country’s lackluster economy.

This had an impact on commodities, as the Bloomberg Commodities Index posted its fifth weekly decline, the longest streak since September. Oil has partially benefited from risk sentiment and is heading for its first weekly advance in over a month.

Betting on Fed rates

within, Traders have increased their bets on a central bank rate hike in June to around 40%., after Dallas Fed President Lori Logan said the issue of next month’s pause was unclear. Instead, central bank governor Philip Jefferson preferred patience.

About $1.7 trillion in derivatives contracts linked to stocks and indices are set to expire on Friday, according to data compiled by John Marshall, a strategist at Goldman Sachs Group.

The monthly event, known as OpEx, usually forces traders to renew existing positions or initiate new positions. This often includes portfolio adjustments that result in increased trading volume and sharp price swings.

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