Stocks in Asia Trade Mixed; Dollar Slips With Yen: Markets Wrap
Asian stocks mostly steadied Tuesday as the contagion from the economic crisis in Turkey remained relatively contained in developed markets. The dollar slipped from its highest in 14 months and Treasuries edged lower.
Japans equities outperformed as the yen pared some of Mondays rise. Australian and South Korean shares also rose while those in China and Hong Kong traded lower. The offshore yuan strengthened even as data showed Chinas economy hit a mid-year rough patch. European futures climbed alongside U.S. contracts as Turkeys lira steadied after slumping over 20 percent in four days.
Still, in a sign that investors are still trying to work through the implications of Turkeys meltdown, the Indian rupee hit the 70-per dollar mark, a record low, as emerging-market currencies remained under pressure. Earlier, Argentinas central bank unexpectedly hiked its key interest rate as the peso slumped to a record low.
I would be looking more for any strength that we see perhaps in the next week or two as an opportunity to sell rather than looking at it as a buying opportunity, Ray Attrill, head of foreign-exchange strategy at National Australia Bank Ltd., told Bloomberg Television. The biggest EM risk, its still ahead of us.
The economic troubles in Turkey have gripped global financial markets, with investors scrambling to determine whether and how far pain there would spread. President Donald Trumps top national security aide warned Turkeys ambassador on Monday that the U.S. has nothing further to negotiate until a detained American pastor is freed, according to people familiar, signaling a standoff between the countries will continue.
Elsewhere, oil pared losses even as economic turbulence in Turkey and the strengthening greenback heightened concerns about global oil demand. Bitcoin dropped below $6,000 and dozens of smaller digital tokens tumbled as this months selloff in cryptocurrencies showed few signs of letting up.
Here are some key events coming up this week:
Earnings are due this week from companies including Tata Steel, Maersk, Home Depot, China Unicom, Tencent, Cisco, Walmart, and Carlsberg. Brexit talks between the EU and the U.K. resume in Brussels Thursday. Retail sales data in the U.S. is on Wednesday, followed by housing data on Thursday.
These are the main moves in markets: Stocks
Topix index jumped 1.6 percent at the 3 p.m. close in Tokyo. Hong Kongs Hang Seng Index fell 1.3 percent. Kospi index advanced 0.5 percent. Australias S&P/ASX 200 Index added 0.7 percent. Futures on the S&P 500 Index rose 0.2 percent. FTSE 100 futures gained 0.3 percent as of 7:08 a.m. in London. The MSCI Asia Pacific Index rose 0.4 percent.
The Japanese yen fell 0.1 percent to 110.83 per dollar. The offshore yuan rose 0.1 percent to 6.8903 per dollar. The euro was steady at $1.1413. The Bloomberg Dollar Spot Index fell 0.2 percent.
The yield on 10-year Treasuries rose one basis point to 2.89 percent. Australias 10-year yield was steady at 2.58 percent. Japans 10-year yield gained less than one basis point to 0.10 percent.
West Texas Intermediate crude rose 0.4 percent to $67.46 a barrel. Gold rose 0.2 percent to $1,195.33 an ounce. LME copper fell 0.4 percent to $6,126.50 per metric ton.
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