- Asian stocks were volatile on Friday after US equities and Treasuries fell following poor tech earnings and new evidence of labor-market robustness, which could support another rate hike this year.
- The major Asian benchmark indices were essentially flat, with stocks in Japan and China fluctuating between losses and gains. MSCI Asia Pacific Index fell for the fifth day in a row, while contracts for US equities traded within a narrow range after the tech-heavy Nasdaq 100 index fell for the first time in over five months on Thursday.
- Stock market falls in the US are putting a halt to this year's torrid surge, which has seen the S&P 500 jump 18% and the Nasdaq 100 rise 41% against a weak economic outlook and the Fed's aggressive tightening campaign.
- In China, investors will continue to seek for evidence of additional government support measures.
- However, because more conservative and balanced policy considerations may result in longer decision-making and action-taking, they expect additional downward pressure on corporate profitability over the next one to two quarterly results seasons.
- The offshore yuan was little changed Friday after the PBoC set the currency's daily fixing at a level that was higher than expected. The offshore yuan rose on Thursday after the central bank increased its support.
