(Bloomberg) -- Asian stocks are set for a lower start to the week after declines in U.S. shares Friday. The energy sector will be in focus after oil posted its biggest drop in roughly a year.
Futures in Japan, Australia and Hong Kong declined. U.S. stocks fell on lighter than normal volume Friday heading into the long Memorial Day holiday weekend though S&P 500 futures pointed to gains. The S&P 500 Energy Index plunged as oil slumped after a Saudi minister said that petroleum supply would likely rise in the second half. The dollar rallied and U.S. Treasury yields fell to the lowest in more than three weeks. The euro rebounded as political uncertainty continued in Italy.
Investors turn their focus to the economy this week with the U.S. jobs report, the last before Federal Reserve policy makers meet in June, the highlight. Geopolitics also remains on traders minds with U.S. President Donald Trump appearing to confirm that his June summit with North Korea’s Kim Jong Un was back on, while Italy sank deeper into political uncertainty as populist leaders pulled the plug on their attempt to form a government.
Terminal users can read more in Bloomberg’s Markets Live blog.
These are some key events to watch this week:
- U.S. markets are closed Monday for Memorial Day. U.K. markets are closed for the spring bank holiday.
- European Union foreign ministers meet in Brussels Monday to discuss developments related to North Korea, Yemen, and the Iran nuclear deal.
- EU trade chief Cecilia Malmstrom and U.S. Commerce Secretary Wilbur Ross are scheduled to meet Wednesday in an informal World Trade Organization ministerial in Paris.
- U.S. employment report for May due Friday
- On Saturday U.S. Secretary of Commerce Wilbur Ross will travel to Beijing for more talks with Vice Premier Liu He on topics including ZTE Corp. and trade.
These are the main moves in markets:
Stocks
- Nikkei 225 Stock Average futures fell 0.3 percent in Singapore
- S&P/ASX 200 Index futures fell 0.5 percent.
- Hang Seng Index futures fell 0.2 percent.
- Futures on the S&P 500 advanced 0.4 percent. The S&P 500 closed down 0.2 percent Friday, the Nasdaq 100 rose 0.2 percent.
Currencies
- The Bloomberg Dollar Spot Index was little changed after climbing 0.3 percent Friday.
- The Japanese yen sank 0.3 percent to 109.71 per dollar.
- The euro jumped 0.3 percent to $1.1681.
Bonds
- The yield on 10-year Treasuries fell five basis points to 2.93 percent Friday.
Commodities
- West Texas Intermediate crude fell 1 percent to $67.21 a barrel after tumbling 4 percent on Friday.
- Gold lost 0.4 percent to $1,297.05 an ounce.
To contact the reporter on this story: Cormac Mullen in Tokyo at cmullen9@bloomberg.net
To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Andreea Papuc
©2018 Bloomberg L.P.
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