Home Business Asia stocks dip on earnings, fading stimulus hopes

Asia stocks dip on earnings, fading stimulus hopes

A general view shows stocks during the reopening of the Japan Stock Exchange in Tokyo (AFP)

Asian stocks saw modest losses Thursday as investors weighed earnings reports from large U.S. banks and fading signs of a stimulus deal before next month’s election. The dollar steadied after an overnight decline.

Shares slipped in Japan and South Korea, and futures pointed lower in Hong Kong. S&P 500 contracts fluctuated after the gauge retreated Wednesday. Wells Fargo & Co. and Bank of America Corp. both fell after disappointing investors, while Goldman Sachs Group Inc. outperformed after earnings beat expectations. Oil advanced.

Elsewhere, Australian bond yields and the local dollar dropped, and stocks pushed higher, after the Reserve Bank of Australia governor said rate cuts were still a possibility. The pound trimmed gains as investors awaited more news on Brexit negotiations.

Treasury Secretary Steven Mnuchin said getting a stimulus agreement before the election would be difficult, in remarks after another call with House Speaker Nancy Pelosi. While he hoped for bipartisan support for Senate Majority Leader Mitch McConnell’s latest idea — a vote on a narrow bill next week to help small businesses — Democratic leaders have no appetite for piecemeal measures now.

“This has been an ongoing drama,” said Paul Nolte, portfolio manager at Kingsview Investment Management. “The latest twist I heard is nothing is going to get done until the election. That’s why I think you’re getting the market selling off a little bit.”

Meanwhile, the Joe Biden campaign on Wednesday denied a New York Post report that said the former vice president met with a senior official from a Ukrainian energy firm that was at the center of a controversy over the dismissal of a prosecutor investigating the company.

Europe’s leaders intensified efforts to stem a resurgent coronavirus outbreak across the continent with France announcing stricter measures, Germany warning of economic risks and London set to tighten restrictions.

Here are some key events coming up:

  • Morgan Stanley’s earnings are scheduled for Thursday.
  • U.K. Prime Minister Boris Johnson set a deadline of Thursday to thrash out the outline of a European Union trade deal.
  • European Central Bank President Christine Lagarde leads off the virtual annual meetings of the International Monetary Fund and the World Bank Group. Through Oct. 18.

These are some of the main moves in markets:

Stocks

  • S&P 500 futures gained 0.1% as of 9:03 a.m. in Tokyo. The index dipped 0.7% on Wednesday.
  • Japan’s Topix index fell 0.2%.
  • South Korea’s Kospi dipped 0.4%.
  • Australia’s S&P/ASX 200 Index rose 0.5%.

Currencies

  • The Bloomberg Dollar Spot Index rose 0.1%.
  • The euro was little changed at $1.1749.
  • The yen was flat at 105.13 per dollar.
  • The offshore yuan was little changed at 6.7125 per dollar.
  • The Aussie fell 0.3% to 71.43 U.S. cents.

Bonds

  • The yield on 10-year Treasuries was steady at 0.73%.
  • The Australian 10-year yield fell 8 basis points to 0.76%.

Commodities

  • West Texas Intermediate crude rose 0.2% to $41.12 a barrel.
  • Gold was at $1,898.87 an ounce, down 0.1%.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

This article is auto-generated by Algorithm Source: www.livemint.com

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