Asian stocks headed for a sixth weekly decline following another day of losses for US shares and surging Treasury yields that underscore expectations for tighter monetary policy and a slowing global economy. Equities fell Friday in Hong Kong, Australia and South Korea after the S&P 500 closed at the lowest level since June. US futures fluctuated.
The 10-year Treasury yield soared 18 basis points to pierce 3.7% on Thursday, its highest in a decade as investors weighed the risk of recession. Yields in Asia pushed higher, led by a jump of more than 20 basis points in Australia as trading resumed there after a holiday. There is no trading of cash Treasuries in Asian hours with markets closed in Japan for Autumnal Equinox Day. A dollar gauge held near a record high after a day of dramatic moves in currency markets that saw Japan intervene to prop up the ailing yen for the first time since 1998. The offshore yuan weakened in the face of efforts to slow the depreciation, with the People’s Bank of China setting the daily reference rate stronger than expected for a 22nd day. Japan’s intervention hasn’t addressed the underlying cause of yen weakness -- the yawning gap between Japan’s ultra-loose monetary policy and rising rates in other countries -- leaving the currency vulnerable. Rate hikes overnight in the UK, Switzerland and Norway, along with increases Thursday in Asia in the Philippines, Indonesia and Taiwan, look set to damp market sentiment in the region. The Federal Reserve has given its clearest signal yet that it’s willing to tolerate a recession as the necessary trade-off for regaining control of inflation, with officials forecasting a further 1.25 percentage points of tightening before year-end. Gold fluctuated and Bitcoin pushed higher, extending gains to a second day, while remaining below $20,000. Oil clung to a slight gain as it headed toward a fourth weekly loss. US After Hours DOCU +1.2% higher as it names Google exec as CEO; COST -2.6% lower on earnings; GWRE +2.6% higher on share buyback news; BA +0.2% as it settles SEC case
Nikkei -0.58% Hang Seng -0.80% CSI -0.32% Shanghai -0.50% Shenzen -1.05%
Eur$ 0.9828 CNH 7.1057 CNY 7.1000 JPY 142.19 GBP 1.1236 CHF 0.9779 RUB 59.1150 TRY 18.3473 WTI$ 82.91 -0.69% Gold 1,669 -0.13% BTC 19,430 +0.96% ETH 1347 +1.73%
S&P -0.11% Nasdaq -0.20% EuroStoxx +0.20% FTSE +0.20% Dax +0.23% SMI +0.23%
Macro :
- Abby Joseph Cohen Says ‘Erratic’ Stocks Show Investor Dilemma
- Goldman Slashes S&P 500 Target to 3,600 from 4,300 Citing Higher Path for Fed Rates
- Income Strategy to Remain in Vogue Ahead of Recession: Jefferies
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