Asia Stocks to Track US Rally as Soft Landing Seen: Markets Wrap

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Stocks in Asia are set to follow US benchmarks higher after strong economic reports revived speculation the Federal Reserve will be able to engineer a soft landing even if it keeps interest rates higher for longer. The dollar strengthened, the euro slid and oil extended its rally.

Equity futures for Hong Kong, Japan and Australia all advanced. Contracts for US stocks also rose following gains on the S&P 500 and Nasdaq 100 on Thursday as retail sales and producer prices beat estimates.

The latest data reinforces the view that the US economy is headed for a period of moderate growth, avoiding a recession over the coming 12 months, according to Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management. Meanwhile, Arm Holdings Plc surged 25% in its trading debut. Ford Motor Co. and General Motors Co. underperformed, with Detroit carmakers facing the threat of a strike. Traders also braced for Friday’s triple witching options event — which has the potential to trigger volume spikes and volatility.

 

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