Asian Stocks Pare Losses; Oil Rallies on OPEC: Markets Wrap
Asian stocks pared earlier losses to trade mixed amid ongoing concern global trade restrictions will curb growth. Oil prices rose as OPEC moved closer to a deal on output.
Declines in Japanese and Hong Kong equities were offset by advances in their Chinese and Korean counterparts. U.S. futures pointed to gains after the S&P 500 Index closed lower and the Dow Jones Industrial Average posted its eighth straight drop. The dollar steadied with Treasuries. West Texas oil rose above $66 as OPEC and its allies reached a preliminary agreement despite strong opposition from Iran to boost production.
A quick escalation of tension between the U.S. and China this month is threatening the growth outlook just as the Federal Reserve signals a faster pace of policy tightening. While many are hoping for a truce before Chinese goods get hit with tariffs, President Donald Trump has shown no signs of backing down.
People want to be defensive, Hao Hong, chief strategist with Bocom International Holdings Co., told Bloomberg TV. Even if you catch a temporary bottom and theres a technical rebound, its not enough to produce a sustainable rally.
Read more here on whats wrong with Asian stocks
Elsewhere, the pound extended gains triggered by the BOEs chief economist vote for an immediate rate hike. Italian assets were hit after two prominent critics of the European Union were given key posts in parliament.
Terminal users can read more in Bloombergs Markets Live blog.
Here are some remaining events to watch out for this week:
The Organization of Petroleum Exporting Countries meets in Vienna on Friday. Flash PMIs will be released in Germany, France and for the euro-zone.And here are the main market moves:
The MSCI Asia Pacific Index fell 0.2 percent as of 2:08 p.m. Tokyo time. Topix index fell 0.5 percent. Hong Kongs Hang Seng Index fell 0.2 percent. Kospi index rose 0.3 percent. Australias S&P/ASX 200 Index declined 0.2 percent. Futures on the S&P 500 Index rose 0.2 percent.
The Bloomberg Dollar Spot Index fell less than 0.1 percent. The yen was flat at 109.99 per dollar. The euro rose 0.1 percent to $1.1618. The pound advanced 0.2 percent to $1.3268.
The yield on 10-year Treasuries was steady at 2.90 percent. Japans 10-year yield declined one basis point to 0.03 percent. Australias 10-year yield fell two basis points to 2.657 percent.
West Texas Intermediate crude surged 1.3 percent to $66.38 a barrel. Gold rose 0.1 percent to $1,267.93 an ounce. LME copper jumped 0.2 percent to $6,801.00 per metric ton.Rašyti komentarą