* Asian stock markets: tmsnrt.rs/2zpUAr4
* Nikkei with a 1% discount, trade decreased by American holidays
* Look at China’s GDP data for economic prospects
* US dollar, Treasuries maintain earnings as risk appetite
SYDNEY, Jan 18 (Reuters) – Asian stock markets retreated from highs on Monday as disappointing news of U.S. consumer spending eased risk sentiment ahead of a watchful reading on US health the Chinese economy.
Doubts were also evident as to how much of the stimulus package of U.S. President-elect Joe Biden will come through Republican opposition in Congress and the risk of further mafia violence at its inauguration Wednesday.
MSCI’s broader Asia-Pacific stock index outside of Japan lost 0.3% to a record high in recent weeks. The Japanese Nikkei fell 1% and moved away from the 30-year highs.
Future E-Minis for the S&P 500 fell 0.3%, though Wall Street will close on Monday for holidays.
Chinese GDP data is expected to show growth of up to 6.1% year-on-year in the last quarter, up from 4.9% in the third quarter. Monthly figures on retail sales and industrial production are expected to show intense activity at the end of the year.
“We expect Chinese GDP growth in Q4 to accelerate to a consensus above 6.5% annually due to strong industrial production, recovery in services and strong exports,” said Joseph Capurso, head of economy CBA International.
“The data will confirm that the Chinese economy ended the year strongly.”
That would be a stark contrast to the United States and Europe, where the spread of coronavirus has marked consumer spending, underscored by sad retail sales in the United States reported on Friday.
“The data calls into question the durability of the recent higher move in bond yields and rising inflation compensation,” ANZ analysts said in a note.
“There is a lot of good news around vaccines and stimulus with fixed equity prices, but optimism is being challenged by the reality of the tough months,” they warned. “The risk across Europe is that the blockades will be extended and US cases could increase sharply as the UK COVID variant spreads.”
This will focus on the earnings guidance of this week’s corporate results, which include BofA, Morgan Stanley, Goldman Sachs and Netflix.
Poor U.S. data helped the Treasury halt some of its recent strong losses and ten-year yields traded at 1.087%, below last week’s high of 1.187%.
At the same time, the more sober mood boosted the US dollar of safe haven, achieving a deeply short bear market. Speculators raised their short net position in dollars to the largest since May 2011, the week ended January 12th.
The dollar index rose sharply to 90,837 and moved away from its recent low of 2-1 / 2 to 89,206.
The euro had retreated to $ 1.2068 from a January high of $ 1.2349, while the dollar remained stable at the yen at 103.93 and well above the recent low at 102.57.
Biden’s selection for Treasury Secretary Janet Yellen is expected to rule out the search for a weaker dollar when it declares Tuesday in Capital Hill, the Wall Street Journal reported.
Gold prices were undermined by the dollar rebound that left the metal at $ 1,812 an ounce, compared to its January high of $ 1,959.
Oil prices fell in profits, as the spread of narrower closures would hurt demand.
Brent crude futures fell 12 cents to $ 54.98 a barrel, while U.S. crude fell 11 cents to $ 52.25.
Edited by Shri Navaratnam