Week InReview: May 19, 2023

China fears.

Photo: Brendon Thorne | Bloomberg

Stocks in Asia were set for a mixed open, with optimism that the US will be able to avert a first-ever default being tempered by evidence that China's economic activity is losing steam. Future contracts for Japanese shares advanced 1%, setting them on a course for their best week since October, after the S&P 500 hit a nine-month high. Hong Kong's benchmark was poised to drop about 1% after Alibaba's results. Treasuries sold off across the curve. The two-year bond yield, which is sensitive to imminent Fed moves, approached 4.3%, while the yen touched its lowest this year against the dollar.

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