Japanese stocks plunged for a second day on expectations for further monetary tightening in the country, exacerbating a global selloff following weak US economic data and tech earnings. The Topix index fell as much as 5.7%, the most since 2020, as the yen traded near its strongest since March to weigh on Japan’s export-oriented economy. Shares also dropped across Asia from South Korea to Hong Kong, with AI chipmaker SK Hynix Inc. tumbling 8.7%. Meantime, Treasuries extended a rally in Asia, with the policy-sensitive two-year yields touching a 14-month low amid increased bets on rate cuts by the Federal Reserve following the central bank’s policy meeting on Wednesday. Swaps traders raised the number of reductions this year to three from two. The broader risk-off tone came after data showed US weekly unemployment claims hit an almost one-year high while manufacturing shrank. The tech-led losses were inflicted by disappointing earnings outlook or results from industry behemoths such as Intel Corp. and Amazon.com Inc. The focus will now shift to the monthly jobs data later Friday. What’s keeping investors on edge in Japan is the outlook for the nation’s central bank to hike rates further following its move earlier this week. The Bank of Japan’s big policy shift this week makes another interest rate hike highly likely in October and raises the potential for quarterly increases, according to a former executive director in charge of monetary policy. The MSCI Asia Pacific Index declined as much as 3.1%, the most in over two years, with tech and industrial companies among the top losers. The S&P 500 and Nasdaq 100 futures also slid in Asia, compounding Thursday’s declines for the underlying benchmarks. Intel said third-quarter revenue will disappoint while Amazon.com projected profits that missed analysts’ estimates, sending each companies shares lower in after-hours trading. Treasuries advanced again on Friday, with the 10-year yield extending its decline below 4%, partly reflecting stronger demand for safe-haven assets. The two-year note saw its yields fall one basis point, adding to the 11 basis-point drop the day before. The yen snapped a three-day gain, a rally that had pushed the currency to around 149 per dollar. The pound slid Thursday after the Bank of England cut rates and signaled further cautious reductions ahead. A Bloomberg dollar gauge edged higher. Aside from the yen’s recent surge, renewed worries about the health of the world’s No. 1 economy also weighed on Japanese shares. Economists are expecting a moderation in job growth in the government’s July employment report due Friday. Forecasters anticipate the unemployment rate remained steady at 4.1%. Elsewhere in Asia, a Chinese central bank policy adviser issued a rare critique of Beijing’s economic policies for being overly conservative, urging the government to ramp up fiscal stimulus and promote inflation. The country’s benchmark CSI 300 stock index extended losses from Thursday following a brief rally in the previous session. In commodities, oil rose after a Thursday decline against the backdrop of concerns Middle East tensions may impact supply. Elsewhere, gold wavered near record levels. US After Hours SNAP -19.5%, INTC -19.3%, AMZN -6.3%, BKNG -5.3% among the big names heading lower; TNDM +24%, DASH +12.9%, TWLO +6.7%, SQ +5.5%, ROKU +4.8% trading higher.
Nikkei -4.71% Hang Seng -2.05% CSI -0.66% Shanghai -0.45% Shenzen -0.32%
Eur$ 1.0798 CNH 7.2174 CNY 7.2175 JPY 149.25 GBP 1.2725 CHF 0.8719 RUB 85.5873 TRY 33.1852 WTI$ 76.75 Gold 2,459 BTC 64,345 ETH 3,160
S&P -0.81% Nasdaq -1.38% EuroStoxx -1% FTSE -0.16% Dax -0.77% SMI
Macro :
- VIX Curve Shows No Sign That It’s Time to Buy the Dip
- Turkey Blocks Instagram, Claims Hamas Condolences Censored
Keep an eye on :
Keep an eye on :
- AKTIA FH : Aktia Bank 2Q Adjusted EPS Matches Estimates
- AMZN US : Amazon Projects Profit That Misses Estimates, Signaling AI Costs
- AAPL US : Apple Pressures Tencent and ByteDance Over App Fees in China
- CS FP : BNP in Talks With AXA for AXA Investment Managers in €5.1B Deal
- CS FP : BNP in Talks With AXA for AXA Investment Managers in €5.1B Deal
- CS FP : AXA 1H Underlying Profit Beats Estimates
- CS FP : AXA Agrees to Buy Nobis Group in Italy for €423M Upfront
- CS FP : Axa Sees Crowdstrike Outage Hit Below €100M: CEO
- BLV FP : Believe Cuts FY Organic Revenue Forecast
- BETSB SS : Betsson Buys UK Sporting Solutions Services Unit From FDJ
- BPOST BB : Bpost 2Q Adjusted Ebit Beats Estimates
- BRNL NA : Brunel 2Q Ebit EU10.9M Vs. EU11.0M Y/y
- CE US : Celanese 3Q Adjusted EPS Forecast Misses Estimates
- COR US : Walgreens Boots Alliance Sells About $1.1b of Cencora Shares (1)
- CC US : Chemours 2Q Adjusted EPS Misses Estimates
- COIN US : Coinbase Shares Rise After 2Q Revenue Beats Estimates
- DASH US : DoorDash Shares Jump on 3Q Adj. Ebitda Guide Beats Estimate
- DBK GY : Deutsche Bank Is Unloading $1 Billion in US Real Estate Loans
- EBS AV : Erste Group Targets Record Dividend, Raises Interest Income Goal
- EDPR PL : EDPR to Sell 240MW Polish Renewable Portfolio in PLN1.15B Deal
- ENGI FP : Engie Raises 2024 Profit Forecast on Strong Power Generation
- FDJ FP : Betsson Buys UK Sporting Solutions Services Unit From FDJ
- IAG LN : IAG 2Q Revenue Meets Estimates
- IAG LN : IAG Terminates Deal With Globalia to Buy Air Europa
- BNP FP : BNP in Talks With AXA for AXA Investment Managers in €5.1B Deal
- FCT IM : Fincantieri Appoints Biagio Mazzotta as Chairman
- GLPG NA : Galapagos 1H Revenue EU140.3M
- IMCD NA : IMCD 1H Revenue Beats Estimates
- INTC US : Intel Slumps on 3Q Revenue Forecast Miss, Suspended Dividend --> -20% in After Hours
- INRN SW : Interroll 1H Ebit Misses Estimates
- LSEG LN : London Stock Exchange Touts IPO Boost From Reforms: ECM Watch
- MSTR US : MicroStrategy 2Q Revenue Misses Estimates
- MOBN SW : Mobimo 1H Ebit Beats Estimates
- NESN SW : Nestle India Invests $84.3M in Joint Venture with Dr. Reddy’s
- OCDO LN : Ocado Sees Costs Surge as It Sells Bonds to Tackle Debt Wall
- PSH NA : Pershing Square Holdings July Net Performance -4.7%
- PIRC IM : Pirelli 2Q Adjusted Ebit Beats Estimates
- PRU LN : Prudential Financial 2Q Adjusted Operating EPS Misses Estimates
- PRY IM : Prysmian Signs €600M Contract for Marinus Link in Australia
- REN PL : Portuguese Electricity Demand Rose 3.6% in July, REN Says
- ROKU US : Roku 3Q Adjusted Ebitda Forecast Beats Estimates
- SFER IM : Ferragamo 1H Revenue Beats Estimates
- GLE FP : Societe Generale Names Farah Head of Global Banking and Advisoryblp
- X US : U.S. Steel 3Q Adj. Ebitda Forecast Misses Estimates: Snapshot