Asian Stocks Round Out Strong Quarter With Caution: Markets Wrap
The dollar headed for the best week this year on hopes U.S. tax reform will aid economic growth. Asian stocks outside Japan were mostly higher on the final trading day of whats been a strong quarter, with emerging markets coming under pressure.
Japanese shares edged lower, while they rose in South Korea, Hong Kong and Australia. The MSCI Asia Pacific Index is set to finish its third quarter of consecutive gains. Volumes were subdued on the last day of the quarter and ahead of some major markets, including China, shutting next week for a holiday. Oil slipped after climbing into a bull market this week.
The chances of higher U.S. interest rates by the end of the year now sit at about 65 percent, as investors bet the worlds largest economy can handle tighter policy, sending equities higher and driving money out of gold. Trumps tax plan, which still needs approval from Congress, currently lacks detail, leaving investors guessing which parts of the package will be prioritized by the administration.
While the Bloomberg Dollar Spot Index has done well this week on the back of the tax proposal and is on track for its first monthly gain since February, its still headed for a third straight quarterly drop, the longest such losing streak since 2011. Its loss in 2017 is more than 8 percent. Gold traded near the lowest since August, on track for the worst month of the year.
What to watch out for prior to the weekend:
Japans inflation rose the most in more than two years in August and advanced for an eighth month. Meanwhile, the nations industrial production climbed 2.1 percent last month versus an estimate of 1. 8 percent. The euro-area inflation rate may have accelerated a touch to 1.6 percent in September from 1.5 percent but the core will probably remain at 1.2 percent. The data is out on Friday. South Koreas markets will be closed next week for a holiday. Data on U.S. personal spending, income and prices is due.
Here are the main moves in markets: Stocks
The Topix index fell 0.2 percent as of 2 p.m. Tokyo time. The Kospi index in Seoul climbed 0.7 percent and Australias S&P/ASX 200 Index added 0.3 percent. Hong Kongs Hang Seng Index was up 0.3 percent while Chinese stocks also advanced. Futures on the S&P 500 were little changed. The underlying gauge added 0.1 percent to a record 2,510.06. The Russell 2000 climbed 0.3 percent, extending its quarterly surge. The MSCI Emerging Markets Index was up 0.5 percent after six days of losses. The gauge is down 2.5 percent this week, set for its worst weekly loss since November. The MSCI Asia Pacific Index advanced 0.2 percent after falling for six days in a row before Friday. Still, it is set to complete its third quarterly gain, the best run since the end of the first quarter 2013.
The Bloomberg Dollar Spot Index rose 0.1 percent as the dollar advanced against all major peers after dipping 0.2 percent. The yen lost 0.2 percent to 112.61 per dollar. The euro was at $1.1780 after advancing 0.4 percent.
The yield on 10-year Treasuries was at 2.31 percent. Australias 10-year bond yield declined about three basis points to 2.83 percent.
West Texas Intermediate crude was at $51.47 a barrel. Oil fell 1.1 percent in the Thursday session, reversing course after touching the highest level since April earlier in the session. Gold dropped 0.2 percent to $1,285.51 an ounce.Rašyti komentarą