EQUITIES
Asia-Pacific stocks were mostly higher on Friday trade, amid optimism that China Evergrande Group was preparing to pay interest due on bond. The shares of Evergrande in Hong Kong surged 5%, and the broader Hang Seng index in the city gained 0.40%, while the mainland Shanghai composite rose 0.09%
The Japan’s Nikkei 225 rose 0.75%, the South Korea's KOSPI added 0.25%, and the Straits Times index in Singapore advanced 0.31%. The Australia’s S&P/ASX 200 traded flat.
The S&P 500 rose 0.3% overnight on Wall Street to a new record closing high of 4,549.78, extending its seventh straight session of gains. The Nasdaq Composite gained 0.62% to 15,215.70 while the Dow Jones Industrial Average lagged, slipping 6.26 points to 35,603.08.
European stocks are expected to open around the flatline as investors weigh corporate earnings against concerns about inflation and the economic recovery.
OIL
Oil prices held overnight gains, amid continued tightness in U.S. supply, but were headed for a flat finish on the week as coal and gas prices eased, curbing fuel-switching which had stoked demand for oil products for power.
The Brent now traded at $84.14 per barrel, and U.S. crude futures traded at $82.15 per barrel.
Overnight, the Brent ends at $84.61 a barrel, and the WTI settled at $82.50 per barrel.
CURRENCIES
The benchmark 10-year U.S. Treasury yields were at 1.696% slightly off from Thursday’s multi-month high of 1.7%.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.731 as it struggles to recover after slipping from above 94 earlier this week and is headed for its second week of consecutive declines.
Bitcoin fell 2% to $63,305 on Friday, after hitting a record $67,016 on Wednesday. However, demand for the cryptocurrency has increased since the launch of the first U.S. bitcoin futures ETF. Ether, the world's second largest cryptocurrency, was flat, traded at $4,154, not far from its all-time high of $4,380, hit in May.
GOLD
Gold inched higher and was poised for a second weekly gain on Friday, as a softer dollar provided some respite against higher U.S. bond yields and rising expectations that central banks could begin easing economic support.
Spot gold rose 0.25% to $1,787.50 per ounce, while U.S. gold futures edged 0.38% higher to $1,788.60.
Spot silver rose 0.43% to $24.27 an ounce and was on track for a fifth consecutive weekly gain, while platinum was up 0.75% at $1,057.60 per ounce and palladium gained 0.9% to $2,036.50.
ECONOMIC OUTLOOK
Asian stocks climbed on Friday, following a report that China Evergrande Group was preparing to pay interest payment due on bond, though concerns over growth and inflation has raised speculation that central banks will increase interest rates, potentially crimping growth.
China Evergrande Group reportedly had wired funds to a trustee account on Thursday for a bond interest payment due Sept. 23, a deadline that would have plunged the embattled developer into formal default. The shares of Evergrande, which is saddled with more than $300 billion in liabilities, rose as much as 8% early on Friday.
Investors are estimating that surging energy prices and tightening job markets will pressure top central banks to either raise interest rates or at least rein in the stimulus. The U.S. labour data showing the number of Americans filing new claims for unemployment benefits dropped last week to a 19-month low, pointing to a tighter labor market, while U.S. home sales also surged to an eight-month high in September.
Earnings spotlight on Friday will be on American Express and Honeywell.
Among economic events today include the U.S. and Eurozone PMI index, and UK retail sales. Fed Chair Jerome Powell also will speak later on Friday in a panel discussion.
