BackAsia stocks dip at open; US futures pare drop
Shares in Japan, South Korea and Australia started lower
PremiumAsian stocks kicked off the week with modest losses as investors mulled the impact of coronavirus outbreaks in countries from the U.S. to Australia, though U.S. futures recouped much of an early decline.
S&P 500 contracts pared most of the slide of as much as 1% after Monday’s open. Shares in Japan, South Korea and Australia started lower. California reported record new cases and Florida infections jumped more than the weekly average. The Aussie was weaker as one Australian state tightened restrictions due to fresh cases. Treasuries were little changed.
Markets remain vulnerable as governments gradually ease coronavirus lockdowns and travel restrictions to revive economic growth while attempting to control the spread of Covid-19. Meanwhile, China over the weekend released details of a proposed national security law that would give the mainland the right to directly prosecute Hong Kong residents for still vaguely defined offenses.
“Shares remain technically overbought and vulnerable to a further correction or period of consolidation, but we continue to see it as a pause in a rising trend," said Shane Oliver, a global investment strategist at AMP Capital Investors Ltd. “Fear about a second wave of coronavirus cases continues."
Elsewhere, China’s suspension of imports from a Tyson Foods Inc. plant stoked concerns over the broader implications for U.S. and global meat exports during the pandemic.
Here are some key events coming up:
- China’s loan prime rate comes in on Monday.
- MSCI Inc. on Tuesday announces its market classification review for 2020.
- The IMF will release new 2020 growth projections on Wednesday.
- U.S. jobless claims, durable goods and GDP data are due Thursday.
- Policy decisions are expected from central banks in Turkey and the Philippines Thursday.
- A rebalance of Russell indexes is due on Friday.
These are the main moves in markets:
Stocks
- Futures on the S&P 500 dipped 0.3% as of 9:01 a.m. in Tokyo. The index fell 0.6% on Friday.
- Japan’s Topix index lost 0.5%.
- South Korea’s Kospi dropped 0.8%.
- Australia’s S&P/ASX 200 Index declined 0.2%.
Currencies
- The yen was flat at 106.81 per dollar.
- The offshore yuan dipped 0.1% to 7.0801 per dollar.
- The Aussie fell 0.3% to 68.18 U.S. cents.
- The euro bought $1.1174.
Bonds
- The yield on 10-year Treasuries was at 0.69%.
- Australia’s 10-year yield remained at 0.86%.
Commodities
- West Texas Intermediate crude oil was flat at $39.75 a barrel.
- Gold climbed 0.4% to $1,750.74 an ounce.
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This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.
