In Asia the Nikkei was flat on Friday as investors stayed on the sidelines ahead of Group of Seven meetings, and prospects for a U.S. interest rate hike as early as June curbed buyers’ appetite. Japan Tobacco (T:2914) dropped 2.6% after Britain got the go-ahead to make plain packaging compulsory on cigarettes when a court struck down a legal challenge brought by the world’s top four tobacco companies, including Japan Tobacco. Such defensive stocks as retailers and utility companies were in demand. Shimamura Co (T:8227) soared 3.2% and Aeon Co (T:8267) rose 1.1%. Kansai Electric Power (T:9503) rose 1.6%, Tokyo Electric Power Co (T:9501) gained 0.8%.
In Currency Markets the GBP was the only major currency to strengthen against the USD this week, buoyed by polls indicating that the campaign to keep the U.K. inside the European Union is extending its lead before a referendum next month. The pound reached a two-week high of $1.4663 and was last at $1.4598. Its trade-weighted index peaked at 87.9, its highest since Feb. 5.
Oil rose 1% to $48.65 a barrel in New York. Prices were boosted this week as data showed U.S.output slid to the lowest since September 2014 and wildfires in Canada expanded.
In US stocks widely declined amid concern that a Federal Reserve interest-rate increase as early as next month could further burden a struggling global economy. The S&P 500 fell 0.4% to 2,040.04. Microsoft Corp (NASDAQ:MSFT). was the biggest drop falling 1%. Wal-Mart's (NYSE:WMT) 9.6% jump led the recovery.
In Bond Markets Japan’s 10-year yield fell three basis points to minus 0.105%. Overseas investors bought 3.6 trillion yen ($32.7 billion) of the nation’s government bonds in April, the most since August 2007, data showed Friday. U.S. Treasuries were headed for their first weekly loss in a month, securities having fallen 0.7% over the last four days. The yield on 10-year notes declined one basis point on Friday to 1.84%.
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