Asian Stocks Tumble Amid Broad Selloff; Yen Gains: Markets Wrap
The MSCI Asia Pacific Index is set to fall for eight days, making it the longest run of losses since 2015. American shares fell, with an afternoon swoon wiping out early gains for a second straight day, as investors assessed the impact of proposed tax cuts. Ten-year Treasury yields maintained a slide to 2.34 percent, while the dollar held onto gains. The pound extended declines amid stalled Brexit negotiations, and the yen jumped.
“The adjustment mode is deepening lately in the Japanese stock market,” said Shunichi Otsuka, general manager in the research department at Ichiyoshi Securities in Tokyo. “It’s difficult to buy unless U.S. equities show firmness, even as some high-tech shares are becoming cheap.”
Australia’s third-quarter GDP climbed 2.8 percent from a year earlier versus a forecast of 3 percent, reinforcing expectations for the central bank to stand pat on rates for much of next year. The Reserve Bank of Australia has signaled no near-term policy change as household spending slows amid lofty debt levels and stagnant wage growth.
A surge in global equities that drove indexes to record highs has stalled as investors lock in profits and await catalysts that would provide reason to add to risk assets before the year draws to a close. Friday’s U.S. jobs report is the next big data release on the calendar. House and Senate lawmakers are poised to begin working on compromise tax-overhaul legislation -- a key step in their drive to send a bill with tax cuts for corporations and individuals to President Donald Trump by the end of the year.
Here are some of the key events facing markets in the coming days:
The European Commission College of Commissioners discusses Brexit on Wednesday and will likely make its recommendation on whether sufficient progress has been made to move negotiations onto the future relationship. The U.S. faces a partial government shutdown after money runs out on Dec. 8 if Congress can’t agree on a spending bill by then. U.S. employers probably hired at a robust pace in November as the unemployment rate held at an almost 17-year low. The Labor Department’s jobs report Friday may also show a bump up in average hourly earnings.
These are the main moves in markets: Stocks
The Topix index was down 1.4 percent at the close in Tokyo. The Nikkei 225 Stock Average lost 2 percent. Australia’s S&P/ASX 200 Index declined 0.4 percent. South Korea’s Kospi index fell 1.2 percent. Hong Kong’s Hang Seng Index lost 1.8 percent as Chinese companies traded in the city dropped. The Shanghai Composite Index fell 1 percent. S&P 500 Index futures fell 0.1 percent. The underlying gauge slipped 0.4 percent. The MSCI Asia Pacific Index declined 1.2 percent.
Currencies
The Bloomberg Dollar Spot Index was little changed. The Aussie dollar declined 0.4 percent to 75.78 U.S. cents. The yen rose 0.4 percent to 112.14 per dollar. The euro was little changed at $1.1839. The pound remained lower, decreasing 0.1 percent to $1.3432 after a 0.3 percent drop on Tuesday.
Bonds
The yield on 10-year Treasuries was steady at 2.35 percent, down from around 2.40 percent a week ago. Australia’s 10-year yield declined nine basis points to 2.50 percent.
Commodities
West Texas Intermediate crude fell 0.4 percent to $57.38 a barrel. Gold was at $1,266.91 an ounce, near the lowest since August, after falling 0.8 percent. Copper futures were up 0.5 percent after plunging 4.7 percent, the most since January 2015.
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