Asia Stocks Slip as Material Shares Slump; Dollar Mixed

Investors adopted a cautious tone at the end of a positive week for Asian stocks. Raw-materials shares slumped, while gold headed for a fourth weekly increase.

The dollar was mixed against major currencies after weakening Thursday on Treasury Secretary Steven Mnuchin’s statement that fiscal stimulus effects on the economy this year may be limited. Hong Kong stocks fell for a second day, while Tokyo shares dropped even as the yen retreated after a two-day gain. Commodity producers dragged equities lower after iron ore tumbled. Oil was poised for its best week of the year.

A fifth weekly gain for Asian shares that’s helped push the value of global equities above $70 trillion is losing momentum as money managers grapple with political uncertainty and the Federal Reserve’s schedule for lifting borrowing costs. Fed Bank of Dallas President Robert Kaplan urged his colleagues at the U.S. central bank to seize opportunities to raise interest rates, even as he said they should keep their options open ahead of next month’s policy meeting.

Markets from stocks to currencies have been subjected to intraday fluctuations this week as investors hang on each word from central bank officials and politicians. In addition to concerns about interest rates and Donald Trump’s economic policies, traders are also watching developments in French presidential elections and the U.K.’s Brexit plans.

Here are the main moves in markets:

Currencies

· The yen dropped 0.2 percent to 112.80 per dollar as of 4 p.m. in Tokyo, after rising 0.6 percent Thursday. The currency is little changed for the week.

· The Bloomberg Dollar Spot Index dropped less than 0.1 percent after falling 0.3 percent in the previous session.

· The South Korean won climbed 0.5 percent, rising for a fourth day in the longest streak of gains since August.

· The Australian dollar was little changed. Central bank Governor Philip Lowe said he expects “a period of stability” in interest rates and suggested further cuts could push already high household debt to “dangerous” levels.

Stocks

· The MSCI Asia Pacific Index fell 0.5 percent, paring this week’s advance to 0.5 percent. Japan’s Topix index lost 0.4 percent. The gauge rose 0.4 percent for the week.

· Australia’s S&P/ASX 200 Index retreated 0.8 percent. BHP Billiton declined 5.9 percent for the week in Sydney, the biggest loss since May.

· Hong Kong’s Hang Seng dropped 0.4 percent, retreating for a second day after reaching the highest since August 2015. The Hang Seng China Enterprises Index lost 0.9 percent, paring the week’s advance.

· Futures on the S&P 500 fell 0.1 percent. The index rose less than 0.1 percent on Thursday, while the Dow posted a 10th day of gains, its longest streak of record closes since 1987.

· Baidu Inc. surged in after-hours trading in New York as profit topped estimates.

Commodities

· Gold added 0.3 percent to $1,253.22 an ounce after rising 1 percent on Thursday. The metal is up 1.5 percent for the week, heading for the highest closing level since November.

· Iron ore tumbled 4.2 percent, and is poised for a weekly loss. After a surprise rally last year, the commodity roared into 2017 on optimism that Chinese demand would prove robust. This week has seen a series of warnings the gains may be overextended.

· Oil slipped 0.2 percent to $54.36, after jumping 1.6 percent in the previous session as government data showed a smaller-than-expected increase in crude inventories. Crude is trading near the highest level since July 2015.

Bonds

· Yields on 10-year Treasuries were little changed at 2.38 percent, after dropping four basis points on Thursday.

· Australia 10-year yields fell six basis points to 2.73 percent.

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