Stocks in Asia Decline; Oil Jumps on Hurricane: Markets Wrap

Luco Jacksono („Reuters“ / „Scanpix“) nuotr.

Stocks in Asia fell as investors assessed the outlook for global growth with no end in sight for trade tensions. Oil prices jumped as a potentially devastating hurricane headed for the American east coast.

Equities declined in all major Asian markets, with Hong Kong shares consolidating after sliding into a bear market. Futures signaled a muted start for stocks in London. Two-year Treasury yields pulled back after hitting a decade high, as the U.S. sold debt and federal funds futures showed investors increasingly expecting two more rate hikes by year-end. Ten-year Treasury yields pared their advance toward 3 percent and the dollar steadied.

Asian stocks are heading for a 10th day of losses. The region’s currencies have also been hit by prospects for tighter U.S. monetary policy following a raft of strong economic data.

“We are concerned that trade tensions are adding to the downside risks to growth,” Sneha Sanghvi, head of Asian financial markets at Westpac Banking Corp., told Bloomberg TV from Singapore. “We are seeing heightened volatility and risk aversion in financial markets -- that trend is likely to continue for the next few weeks.”

Crude built on its biggest advance since June as Hurricane Florence threatened U.S. east coast gasoline markets and sanctions began crimping Iranian oil exports.

Here are some key events coming up this week:

Policy decisions from the Bank of England and the European Central Bank on Thursday. Apple unveils its latest iPhones on Wednesday. Australia employment is due Thursday. China releases August industrial production, retail sales data on Friday. U.S. retail sales, industrial production, consumer sentiment on Friday.These are the main moves in markets:

Stocks

Topix index declined 0.4 percent at the 3 p.m. close in Tokyo. Hong Kong’s Hang Seng Index pared losses to 0.2 percent. Kospi index lost 0.2 percent. Australia’s S&P/ASX 200 Index declined 0.1 percent. Futures on the S&P 500 Index were flat. Futures on U.K.’s FTSE 100 Index rose 0.2 percent. The MSCI Asia Pacific Index fell 0.3 percent.

Currencies

The Japanese yen rose 0.1 percent to 111.53 per dollar. The offshore yuan fell 0.1 percent to 6.8820 per dollar. The euro fell 0.2 percent to $1.1587. The Bloomberg Dollar Spot Index fell less than 0.05 percent.

Bonds

The yield on 10-year Treasuries fell one basis point to 2.97 percent. Australia’s 10-year yield nudged a basis point higher to 2.59 percent.

Commodities

West Texas Intermediate crude rose 1 percent to $69.94 a barrel. Gold fell 0.3 percent to $1,194.56 an ounce. LME copper rose 0.6 percent to $5,895 per metric ton.

Komentarai