GLOBAL MARKETS-Asia shares set for choppy session after S&P 500 hits record high

By Chibuike Oguh
April 8 (Reuters) - Asian equities are set for a choppy
trading session on Friday after technology stocks lifted the S&P
500 to a new record even as investors weighed an unexpected rise
in the number of Americans filing new claims for unemployment
benefits.
A U.S. jobless claims report showed a second straight weekly
increase earlier on Thursday, bucking the streak of strong
economic data from payrolls and job vacancies that had buoyed
investor confidence in a quick economic rebound.
The softer data helped yields on the benchmark 10-year U.S.
Treasury note drop to its lowest level since March 26, and spur
demand for high growth stocks in the technology sector
.SPLRCT , which was the biggest gainer in the S&P 500. The
tech-heavy Nasdaq also closed at a seven-week high on Thursday.
"Jobless claims set a tone for the market that perhaps things
are not as strong as people think and we're still ways away from
a recovery," said Tim Ghriskey, chief investment strategist at
Inverness Counsel in New York.
Australian S&P/ASX 200 futures YAPcm1 rose 0.03% in early
trading, while Hong Kong's Hang Seng index futures .HSI
HSIc1 lost 0.17%. Japan's Nikkei 225 futures NKc1 was up
0.45%.
U.S. Federal Reserve Chairman Jerome Powell signaled on
Thursday the central bank is nowhere near reducing its support
for the U.S. economy, saying at an International Monetary Fund
event that while the economic reopening could result in a
momentary surge in prices, he expects it to be temporary and it
will not constitute inflation. Powell's comments reaffirmed the accommodative stance
outlined in the minutes of the Fed's policy meeting published on
Wednesday. Aided by the further pullback in yields, traders piled into
megacap tech stocks such as Apple Inc AAPL.O , Microsoft Corp
MSFT.O and Amazon.com Inc AMZN.O , which were the main
drivers of the S&P 500.
"The movement in the market was predicated on rates," said
Thomas Hayes, chairman of Great Hill Capital. "As long as rates
stay compressed there's a bid for long duration earnings power,
which was embodied in the rally in tech."
On Wall Street, the Dow Jones Industrial Average .DJI rose
0.17% to 33,503.57, the S&P 500 .SPX gained 0.42% to 4,097.17
and the Nasdaq Composite .IXIC added 1.03% to 13,829.31.
U.S. Treasury yields fell on Thursday, pressured by Powell's
dovish comments and weaker-than-expected initial weekly jobless
claims. Benchmark 10-year notes US10YT=RR last rose 9/32 in price
to yield 1.6244%, from 1.654% late on Wednesday.
The U.S. dollar dropped to a two-week low against a basket
of currencies, tracking Treasury yields following the surprise
rise in U.S. unemployment applications. The dollar index =USD fell 0.379%, with the euro EUR= up
0.03% to $1.1916
The Japanese yen weakened 0.05% versus the greenback at
109.31 per dollar, while the South Korean won was flat versus
the greenback at 1,116.18 per dollar.
Gold prices jumped, scaling a one-month peak as the Fed's
assurances that it will maintain its accommodative policy
weighed on Treasury yields and the greenback. Spot gold XAU= added 1.1% to $1,756.36 an ounce. U.S. gold
futures GCv1 settled up about 1% at $1,758.2.
Crude oil prices were little changed as Wall Street's rally
and the soft dollar offset concerns over a big jump in U.S.
gasoline stocks.
U.S. crude CLcv1 fell 0.28% to settle at $59.60 per
barrel, while Brent LCOcv1 settled at $63.20 per barrel, up
0.06% on the day.

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