* Tech stocks follow their US peers higher on FAANG earnings optimism
* Evergrande to avoid default after surprise interest payment
* Energy stocks crash as markets brace for higher inflation
TOKYO, Oct.22 (Reuters) – Tech stocks surged in Asia on Friday, following the rise of their US peers, while Chinese real estate stocks rallied following a surprise interest payment here by debt-ridden property developer China Evergrande Group.
Meanwhile, energy stocks trailed following an overnight pullback in oil prices, and as coal futures extended losses after Beijing signaled it would step in to calm down soaring prices which contributed to the country’s electricity shortage.
More generally, investors are increasingly worried that persistent inflation will force central bankers to tighten monetary policy at a time when global economic growth remains fragile.
Yields on regional bonds rose along with those on U.S. Treasuries, where the market took into account higher inflation expectations by narrowing the spread between short and long-term yields and pushing up rates. highest balance since 2012.
The dollar held onto its gains overnight – when it rose the most since the start of last week against its major peers – as better jobs data strengthened the case for a further cut. rapid stimulus from the Federal Reserve and past interest rate hikes.
Japan’s Nikkei rose 0.3%, led by tech stocks, while energy and basic materials stocks were the biggest drag. The larger Topix ended the day up 0.1%, with a 0.4% jump in the Topix growth index mainly offset by a 0.2% drop in the value index.
Chinese blue chips gained 0.7%, with the CSI300 real estate index rising 2.1%. The Hong Kong Hang Seng rose 0.1%, while an index listing mainland developers listed in Hong Kong rose 3.4%.
The China Evergrande group wired funds to a trust account Thursday for a dollar bond interest payment due Sept. 23, a source told Reuters on Friday, days ahead of a deadline that would have plunged the embattled developer into formal default. . The title jumped 3.5%.
The largest MSCI index of Asia-Pacific stocks outside of Japan rose slightly, keeping it on track for a 1.6% gain this week. It would be a third consecutive winning week, the longest streak since early June.
Futures indicated a higher open in Europe, with FTSE futures indicating a rise of 0.3% and DAX futures indicating an advance of 0.3%.
In contrast, futures on S&P 500 E-minis showed a 0.1% decline on reopening, after the cash index hit a record high overnight closing, driven by the stock surge. technological.
The S&P 500 added 0.3%, while the Nasdaq Composite rose 0.6%, although the Dow Jones Industrial Average edged down.
Next week, almost all of the so-called FAANG giants will bring in revenue: Facebook, Apple, Amazon and Alphabet, owner of Google. Netflix released its results on October 19 and for the quarter that ended in September, diluted earnings per share stood at $ 3.19, beating analysts’ expectations by $ 2.57.
“The narrative for the past two days has been focused on earnings and tech stocks have led the charge,” said Kyle Rodda, market analyst at IG Australia.
“There’s momentum out there, it’s that simple.”
At the other end of the spectrum, energy stocks were the biggest drag on indices from Tokyo and Sydney to Hong Kong and Shanghai.
Chinese coal prices continued to plunge after the government said it would step in to cool prices to help power producers come out of a widespread electricity crisis.
Oil prices also fell, with Brent forecast for its first losing week in seven, and West Texas Intermediate crude falling for the first week in nine, after falling from multi-year highs reached earlier in the week.
Brent slipped 0.7% to $ 84.03, while WTI fell 0.6% to $ 82.03.
“The price of crude oil and energy in general have seen a fairly good increase,” said Chris Weston, head of research at broker Pepperstone in Melbourne.
“I don’t think people are necessarily giving up energy, but I think people think it’s time to get out of what has been a very hot industry.”
Meanwhile, benchmark 10-year Treasury yields were at 1.6802%, retreating from a five-month high of 1.7050% reached overnight. Two-year yields at 0.4513% remained close to the overnight high of 0.4560%, a level not seen since March of last year.
The dollar index, which values the greenback against six major rivals, edged up to 93.755 on Friday, adding to the 0.2% gain from the previous session.
The index rebounded from its lowest this month overnight after data showed the number of Americans filing new unemployment benefits fell to a 19-month low last week, indicating a tighter labor market.
The Fed has signaled that it could start cutting stimulus as early as next month, with rate hikes at the end of next year. Full employment is among the requirements set out by the Fed for rates to take off.
Fed Chairman Jerome Powell will speak later Friday at a panel discussion.
Editing by Simon Cameron-Moore