Asia Stocks Dip on US Consumer Woes, Gold Rises

Asian stocks declined from the highest level in almost two years on concern about the appetite of U.S. consumers to keep spending, while bonds and gold extended gains.

Consumer discretionary shares led losses on the MSCI Asia Pacific Index as equities retreated from Australia to India. Worries that Americans continue to hold back from buying goods dragged the S&P 500 Index lower Thursday. Gold extended an advance while Australian government bonds tracked gains in Treasuries. Oil approached $48 a barrel.

Global equities are trading near a record high amid optimism the economy can weather higher U.S. interest rates. Weak sales at American department stores underscored rising angst that the biggest part of the U.S. economy isn’t picking up pace enough to raise growth rates. U.S. retail sales data due later Friday will give investors a fresh read on the situation.

While mainland Chinese shares rebounded on Friday, they still headed for a fifth week of declines, the worst run this year. The rout has erased more than $560 billion from the value of equities, making the Shanghai Composite Index the world’s worst performer since mid-April.

In Hong Kong, the Hang Seng Index rose for a fifth straight day. China’s government has made preparations to support the city’s stock market if needed to create a positive atmosphere before July 1, when Xi Jinping is expected to visit for the first time as president to mark 20 years of Chinese rule.

Here are the main moves in markets:

Stocks

· The MSCI Asia Pacific Index slipped 0.3 percent as of 2:51 p.m. in Tokyo, retreating from a 23-month high on Thursday and paring its gain for the week to 1.3 percent.

· Japan’s Topix index fell 0.5 percent after reaching the highest level since December 2015 in the previous session. The gauge is up 1.8 percent for the week.

· Australia’s S&P/ASX 200 Index retreated 0.8 percent and South Korea’s Kospi index dropped 0.4 percent after closing Thursday at an all-time high.

· The Shanghai Composite Index rose 0.8 percent, paring its weekly loss to 0.5 percent.

· S&P 500 e-mini contracts were down 0.1 percent after the underlying gauge fell 0.2 percent Thursday. The Stoxx Europe 600 slid 0.5 percent, after gaining 0.2 percent Wednesday to the highest level since August 2015.

Currencies

· The yen rose 0.1 percent to 113.78 per dollar, paring its decline for the week to 0.9 percent.

· The Aussie added 0.1 percent to 73.86 U.S. cents, on course for a fourth weekly slide against the greenback.

· The kiwi dollar was little changed, after tumbling to the lowest in almost a year on Thursday following dovish comments from New Zealand’s central bank.

Bonds

· The yield on 10-year Treasury notes was down one basis point at 2.38 percent, after falling three basis points Thursday.

· Yields on 10-year Australian government bonds fell three basis points to 2.62 percent, down for the third day in a row.

Commodities

· Oil rose 0.2 percent to $47.92. Crude is up for a third day, leaving the worst of last week’s rout behind for now, as U.S. stockpiles fell and two OPEC members said there’s a consensus to extend output cuts.

· Gold advanced 0.2 percent to $1,226.94 an ounce after a 0.5 percent advance Thursday.


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