Stocks in Asia declined Wednesday after solid economic readings and higher commodities prices spurred speculation that major central banks will keep interest rates higher for longer. Benchmarks in South Korea and Hong Kong led the region’s decline. Mainland Chinese shares resumed their slide after a report showing expansion in the Caixin purchasing managers’ indexes didn’t provide a fresh catalyst. Contracts on US equities edged lower after the S&P 500 fell 0.7% in Tuesday trading.
Global equities have struggled to build on the strong gains of the previous quarter, with benchmarks gauges from Tokyo to New York largely rangebound this week as investors recalibrate their outlook on interest rates. Pressure on equities followed better-than-estimated data on US job openings and factory goods orders that added to skepticism about the pace of Federal Reserve easing. Swap traders are currently projecting about 65 basis points of rate reductions this year — less than the 75 basis points signaled in the Fed’s latest “dot plot” forecasts. Remarks from Fed Chair Jerome Powell later Wednesday may offer further clues. He will speak after two other Fed officials who vote on monetary policy decisions this year supported the view for cuts this year in Tuesday comments. San Francisco Fed President Mary Daly and her Cleveland counterpart Loretta Mester said they still expect the central bank to lower rates three times in 2024 — though they’re in no rush to begin lowering borrowing costs. Treasuries were flat during Asian hours after further selling pushed yields higher on Tuesday, when the 10-year yield touched the highest level since November. The moves were reflected in Australian yields, which climbed Wednesday. An index of the dollar was little changed. The yen was also flat against the greenback at around 151 per dollar, remaining around the weakest level of the year — keeping alive the possibility of official intervention to the support the currency. Tatsuo Yamasaki, Japan’s former vice finance minister for international affairs, said the government “can step in as soon as the yen falls beyond the current range,” in an interview Tuesday. The yuan, meanwhile, traded close to the weak end of its onshore trading band, the latest sign that a recent slew of upbeat economic data hasn’t been enough to bolster the Chinese currency. In commodities, oil steadied following a rally Tuesday after an industry report pointed to a drawdown in US crude inventories, ahead of an OPEC+ meeting at which the group is expected to affirm current supply cuts. Gold climbed to hold a rally over the past six sessions, while Bitcoin gained to over $66,000. In other corporate news, shares in Taiwan Semiconductor Manufacturing Co. were lower as the company evacuated factory areas following Taiwan’s strongest earthquake in 25 years, casting uncertainty over production at the world’s largest maker of advanced chips. Disney is said to have secured enough shareholder votes to fend off a challenge from Nelson Peltz’s Trian Fund Management LP, according to a Reuters report. Singapore Telecommunications Ltd. said there is no impending deal to sell its Australian phone carrier Optus. US After Hours INTC -3.7% lower as it outlines a new reporting structure, provides historical financial metrics; CALM +6% and PLAY +4.5% higher on earnings.
Nikkei -0.67% Hang Seng -0.90% CSI -0.16% Shanghai -0.07% Shenzen -0.43%
Eur$ 1.0774 CNH 7.2538 CNY 7.2350 JPY 151.60 GBP 1.2578 CHF 0.9081 RUB 92.4750 TRY 32.0813 WTI$ 85.18 +0.04% Gold 2,285 +0.18% BTC 66,036 +0.51% ETH 3,297 +0.77%
S&P -0.18% Nasdaq -0.22% EuroStoxx -0.16% FTSE -0.31% Dax -0.18% SMI -0.29%
Macro :
- Schonfeld Leads Multistrategy Hedge Fund Gains in First Quarter
- Morgan Stanley’s Shalett Says Stay Clear of ‘Overbought’ S&P 500
- Worst Taiwan Quake in 25 Years Levels Buildings (Correct)
- Euro to Suffer From Growth Underperformance: FX Macro Ranking
Keep an eye on :
Keep an eye on :
- AIR FP : Airbus Workers in Canada to Vote on Second Contract Offer Sunday
- BAMI IM : Banco BPM Could Sell Around €500m Bad Loans Portfolio: MF
- DIS US : Disney Gets Votes to Defeat Trian in Proxy Battle, Reuters Says
- GMAB DC : Genmab to Buy ProfoundBio for $1.8 Billion in Cash
- LONN SW : Lonza Proposes 14% Dividend Increase to CHF4.00 Per Share
- MBTN SW : Meyer Burger: 97.54% Take-Up of Shares in Capital Increase
- AERO SW : Montana Aerospace Sees 2024 Sales About EU1.7B
- NOBI SS : Nobia Sees Challenging Coming Quarters Due to Lead Times
- NOBI SS : Nobia Sees Challenging Coming Quarters Due to Lead Times
- OVS IM : OVS Signs Investment Pact to Buy Goldenpoint in Multiple Stages
- RNO FP : CMA CGM Takes 10% Stake in Flexis E-Van Joint Venture
- RSW LN : Siemens Says It Doesn’t Intend to Make an Offer for Renishaw
- CFR SW : Mytheresa May Bid for Richemont’s Yoox Net-a-Porter: FT
- STM FP : Seatrium Secures Vessel Repair & Upgrade Contracts Worth S$350m
- SIE GY : Siemens Says It Doesn’t Intend to Make an Offer for Renishaw
- SKAB SS : Skanska to Replace Seattle’s Portage Bay Bridge For $1.4 Billion
- STLAM IM : Italy March New Car Sales Fall 3.71% Y/y
- SREN SW : Swiss Re CEO Christian Mumenthaler to Step Down
- TSLA US : Tesla Also Losing Ground in China as It Disappoints Globally
- TGS NO : TGS, PGS, SLB Start Penyu Basin Multiclient 3D Seismic Project
- TKA GY : Thyssen Steel to Present Restructuring Details Next Week: Rtrs
- WIN LN : GXO Part-Replaces Wincanton Bridge Facility With New £250m Loan