Asian stocks set to fall after volatile US session: Markets close
(Bloomberg) – Asian stocks fell following sharp swings on Wall Street as investors faced mixed economic data in the United States and disappointing results from tech giants.
A gauge of Asian stocks slipped, weighed down by Hong Kong-listed tech stocks. U.S. stock contracts fell amid Amazon.com Inc.’s after-hours tumble as its sales forecast fell short of estimates. Shares of Apple Inc. rose slightly post-market after a volatile afternoon.
In bond and currency markets, traders are watching for any further pressure on the Bank of Japan, which makes a policy decision on Friday. Prime Minister Fumio Kishida announced a supplementary economic stimulus budget ahead of the rate announcement. The central bank is expected to stick to its lowest rates, a policy that triggered a slide in the yen and put the BOJ at odds with global bond markets.
Chinese assets also remain in focus, with overseas investors selling off a record amount of mainland Chinese stocks this week and sending Hong Kong stocks to their lowest level in 13 years. President Xi Jinping’s tightening grip on power has not had the same impact domestically, with mainland investors seeking bargains in Hong Kong.
Bond yields fell in Australia and New Zealand, after a fall that took the yield on 10-year Treasury bills to well below 4%. Currencies stabilized in early Asian trading after the dollar’s gains on Thursday.
Gross domestic product data showed the US economy rebounded from two quarterly contractions, but also pointed to consumer spending remaining under pressure due to inflation.
Elon Musk has completed his acquisition of Twitter Inc. for $44 billion, according to people familiar with the matter. Holders will be paid $54.20 per share and the social network will now operate as a private company.
Economists still expect the Fed to hike three-quarters of a percentage point for the fourth straight time when it meets next week. But with recent data underscoring the effects of sharp rate hikes on the economy, investors expect the FOMC to slow the pace of tightening after the November meeting.
Read: Bond Bulls bet on rate plateau as Dovish signals rise
The rhetoric from policymakers lately “also supports our forecast that the Fed will slow the pace of the hike to 50 basis points in December, following another 75 basis point hike in November,” wrote a team of economists. of Goldman Sachs, including Daan Struyven, in a note. .
The European Central Bank raised its key rate on Thursday by 75 basis points – in line with expectations – and announced further tightening to come. But ECB officials were not unanimous on the scale of the increase and sought to avoid giving a specific signal when they next move in December, according to people familiar with the matter.
Elsewhere, oil headed for a weekly gain, supported by tighter petroleum product markets, strong US exports and a weaker dollar. Gold was set for its second weekly rise and Bitcoin was trading above $20,000.
Key events this week:
- Bank of Japan policy decision Friday
- US Personal Income, Personal Spending, Pending Home Sales, University of Michigan Consumer Sentiment, Friday
Some of the major movements in the markets:
- S&P 500 futures fell 0.3% at 10:56 a.m. in Tokyo. The S&P 500 fell 0.6%
- Nasdaq 100 futures fell 0.5%. The Nasdaq 100 fell 1.9%
- Japan’s Topix index climbed 0.1%
- South Korea’s Kospi index rose 0.1%
- Hong Kong’s Hang Seng index fell 0.5%
- China’s Shanghai Composite Index fell 0.7%
- Australia’s S&P/ASX 200 index fell 0.5%
- The Bloomberg Dollar Spot Index was little changed
- The euro rose 0.2% to $0.9982
- The Japanese yen fell 0.1% to 146.44 per dollar
- The offshore yuan was little changed at 7.2565 to the dollar
- Bitcoin fell 0.7% to $20,247.78
- Ether fell 0.7% to $1,516.54
- The yield on 10-year Treasury bills was 3.91%
- The Australian 10-year bond yield fell eight basis points to 3.75%
- West Texas Intermediate crude fell 0.8% to $88.36 a barrel
- Spot gold was little changed at $1,661.86 an ounce
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