Asian equities declined for a second day along with bonds, as traders consider cooling expectations of Federal Reserve rate cuts for the rest of the year. The MSCI AC Asia Pacific Index fell as much as 1.1% as benchmarks in Australia and Japan declined while Chinese markets climbed. That’s after equities in the US dropped from nearly overbought levels, following a relentless advance to all-time highs. Treasuries’ 10-year yields jumped 11 basis points to 4.20% on Monday, after Federal Reserve Bank of Kansas City President Jeffrey Schmid said he favors a slower pace of interest-rate reductions given uncertainty about how low the US central bank should ultimately cut rates. Bonds from Australian and New Zealand fell. The risk of a slower rate-cut pace “would be dollar-positive and also normally a headwind for Asia equities,” said Kieran Calder, head of equity research at Union Bancaire Privee in Singapore. Several factors, including concerns over supply and better US economic data, are driving the bond selloff, Chris Weston, head of research at Pepperstone Group Ltd., wrote in a note. US election bets are also weighing on the market, with traders “front-running the risk of a ‘Red Sweep,’” he said, referring to the possibility of Republicans taking the White House and Congress. A presidential win for Donald Trump will stoke concerns that his support for looser fiscal policy and steep tariffs will deepen the federal deficit and fuel inflation, undermining Treasuries. The chances that Federal Reserve officials will leave interest rates unchanged in November are mounting as the US economy powers ahead, according to Torsten Slok, chief economist at Apollo Global Management. Asia’s stock markets are set for their busiest week of listings in more than two years, offering a crucial test of demand as companies rush to raise money before the US election. Hyundai Motor India Ltd. shares dropped more than 5% early in their Mumbai debut on Tuesday after the company raised $3.3 billion in the South Asian nation’s largest-ever initial public offering. In Japan, Tokyo Metro Co.’s $2.3 billion listing, which is scheduled for Oct. 23, was met with robust demand, with foreign investors seeking more than 35 times the shares on offer to them, according to several of the lead underwriters on the deal. Meanwhile, traders will continue to monitor Beijing’s efforts to boost growth in its struggling economy through stimulus. Central Huijin Investment Ltd., a unit of China’s sovereign wealth fund that has at times bought equity to stabilize the stock market, issued bonds that pushed its total local debt sales this year to a record. On Monday, Chinese banks cut their benchmark lending rates after easing by the central bank in September, part of a series of measures aimed at halting a housing market slump. Japanese traders are keeping one eye on the run-up to this coming weekend’s election. Support for Prime Minister Shigeru Ishiba’s ruling coalition is continuing to soften, indicating the possibility that the vote may result in a weakened and unstable administration. The currency markets remain on tenterhooks as the yen weakened against the dollar and reached the 151 level per dollar on Tuesday. Gold steadied, after hitting a record high in the previous session, as traders digested Federal Reserve officials’ views on US interest rates. Oil was down moderately after rising nearly 2% on Monday amid Middle East tensions. US After Hours SAP +4% up nicely on beat-and-raise in Q3; MEDP -10.7% slides on disappointing quarterly results.
Nikkei -1.22% Hang Seng +0.16% CSI +0.17% Shanghai +0.19% Shenzen +0.41%
Eur$ 1.0821 CNH 7.1348 CNY 7.1234 JPY 150.86 GBP 1.2999 CHF 0.8651 RUB 96.5500 TRY 34.2486 WTI$ 70.35 Gold 2,734 +0.50% BTC 67,555 -0.25% ETH 2,643
S&P -0.19% Nasdaq -0.28% EuroStoxx +0.16% FTSE -0.23% Dax +0.42% SMI -0.22%
Macro :
- Yardeni Sees Gridlock As Best Election Outcome for US Stocks
- Automakers Are Mired in First Europe Sales Slump in Two Years
- EUROPE CAR SALES DROP 4.2% TO 1.12 MILLION UNITS IN SEPTEMBER
- EU September Car Registrations Drop 6.1% Y/y to 0.809m Units
Keep an eye on :
Keep an eye on :
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- CAMX SS : Camurus Says US FDA Issues CRL for CAM2029 New Drug Application
- CAKE US : Activist Urges Cheesecake Factory to Consider Breakup -- WSJ
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- ECONB BB : Econocom Maintains FY Revenue Forecast
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- EDF FP : EDF Issues Strike Notice for Thursday as Union Seeks Wage Hike
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- EFUEL NO : Everfuel’s Minimum Acceptance Condition Satisfied for Offer
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- GJF NO : Gjensidige 3Q Pretax Profit Beats Estimates
- HSBA LN : HSBC to Simplify Organizational Structure From Jan. 1 (1)
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- MC FP : LVMH Launches Employee Holder Plan of Up to 200k New Shrs
- MAERSKB DC : Maersk Upgrades Full-Year Guidance After Strong Third Quarter
- MRX US : Marex Group Holders Offer 7m Shares
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- PKTM AV : Pierer Mobility Cancels Full-Year Guidance
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- RAND NA : Randstad 3Q Revenue Meets Estimates
- RATOB SS : Ratos 3Q Revenue Misses Estimates
- SAABB SS : Saab 3Q Operating Profit Beats Estimates (1)
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- SIGN SW : SIG Board Nominates Ola Rollén for Election as Chair at 2025 AGM
- SGF IM : Italy’s F2i May Sell 40% Stake in Kos Nursing Homes: Corriere
- TECN SW : Tecan Sees Return to Mid- to High-Single-Digit Growth Rates
- TEL2B SS : Tele2 3Q Ebitda Meets Estimates
- TOM NO : Tomra 3Q Revenue EU326M
- 8TRA GY : Traton Prelim 3Q Adjusted Operating Profit Beats Estimates
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- VEON US : Veon’s Investor Shah Capital Urges Changes to Boost Share Price
- MF FP : Wendel to Buy 75% of Monroe Capital