Dollar & US Equity Futures Rise as Asian Stocks Declined – Asia Market Wrap

The dollar rose alongside US and European stock futures in a mixed day for risk assets, while Asian markets retreated.

The MSCI Asia Pacific Index ended a three-day winning streak as investors mostly ignored news that China’s economy grew at its quickest rate in six quarters. The country’s benchmark CSI 300 Index fluctuated following the report announcement, but finished higher in the afternoon session. Shares in South Korea, India, Australia, and Japan fell.

The dollar rose versus all Group of 10 peers, but it was still on track for its first weekly fall since November.

Last year, China’s economy met the government’s growth target thanks to a last-minute stimulus package and an export boom that boosted activity. However, imminent US tariffs threaten to derail a vital driver of growth.

Asian markets fell even as they were poised to rise for the week, with the advance fuelled in previous days by estimations that Federal Reserve interest rate reduction would come sooner than expected. Investors were also anticipating a meeting of Japan’s central bank next week. Traders believe that a rate hike is almost certain.