Asian stocks were mixed after the biggest weekly advance since February. The Ringgit performed better than anticipated by offshore trading as Malaysian markets reopened following Wednesday’s unprecedented election result.
Equities advanced in Japan, Australia and Hong Kong, were little changed in South Korea and slipped in Singapore and Indonesia. Malaysia’s stocks swung between gains and losses.
US Futures pointed to gains after stocks closed slightly higher on Friday, capping their best week in two months amid growing conviction that inflation will remain contained. Signs of easing trade tensions are also helping, with suppliers to China’s embattled ZTE Corp. rising. The dollar slipped while yields on 10-year U.S. Treasuries ticked lower.
Traders are closely watching Malaysia’s equity market today after Mahathir Mohamad ousted Najib Razak’s ruling coalition in a historic power shift. The Ringgit erased a decline of almost 1% against the dollar, which was a fraction of the 2% plus drop in one-month non-deliverable forwards in the immediate aftermath of the election. The nation’s bonds fell, with the 10-year bond yield rising. Stocks in neighboring Indonesia were hit after terrorist attacks there.
Elsewhere, oil held a loss below $71 as the United Arab Emirates said OPEC has enough spare production capacity to mitigate any impact on crude markets if the U.S. re-imposes sanctions on Iran.
This article provided by NewsEdge.