Asia’s major stock indexes were low on drama on Wednesday with investors becalmed as optimism over an imminent fall in interest rates faded and the wait for significant stimulus from Beijing continued.
Shares backed away from 10-week highs and the dollar found support as investors’ tempered some of their earlier enthusiasm about the prospect of an end to US central bank tightening.
Japan’s Nikkei share average gained, rebounding from early declines as a weaker yen buoyed exporter shares, even as chip stocks dragged.
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The Nikkei closed up 0.29% at 33,451.83. Of its 225 components, 171 stocks advanced, 52 fell and two traded flat. The broader Topix added 0.44%.
China stocks edged down while Hong Kong shares were flat, as market participants awaited more stimulus for the Chinese economy.
The blue-chip CSI 300 Index retreated 1.02%, while the Shanghai Composite Index lost 0.79%, or 24.32 points, to close at 3,043.61. The Shenzhen Composite Index on China’s second exchange dropped 1.20%, or 23.21 points, to 1,905.80.
Hong Kong shares of Baidu Inc jumped 5.1% to hit a five-week peak after the company beat expectations for its third-quarter earnings. The wider Hang Seng Tech Index dropped 0.18%.
The territory’s main Hang Seng Index edged up 0.01%, or 0.71 points, to 17,734.60, and the Hang Seng China Enterprises Index lost 0.03%.
Elsewhere across the region, in earlier trade, Sydney, Wellington, Taipei, Bangkok and Jakarta slipped. Seoul, Mumbai, Wellington and Manila edged up.
MSCI’s broadest index of Asia-Pacific shares outside Japan was off 0.54%, retreating a bit having gained more than 3% since a week ago and hitting its highest since September on Tuesday.
Treasury Yields Dip
Overnight the S&P 500 snapped a five-session winning streak and fell 0.2%. Chipmaker Nvidia reported revenue well above Wall Street expectations after market close, but shares fell 1.7% due to the company’s downbeat China sales outlook.
Nasdaq futures were down about 0.2% and S&P 500 futures were little changed in Asian hours. Volumes are likely to be lightened through the rest of the week by Thursday’s Thanksgiving holiday in the United States.
European share markets are set for a muted open, with Eurostoxx 50 futures up 0.05%, German DAX futures 0.08% higher and FTSE futures up 0.06%.
Ten-year Treasury yields were marginally lower at 4.3910% in Asia trade. They have fallen about 50 basis points since the Fed held rates steady early in the month.
Interest rate futures markets see almost no chance the Fed hikes again and price about 90 basis points of rate cuts through 2024, with a 30% chance they begin as soon as March.
In foreign exchange markets, the dollar, which has been sliding since last week’s benign US inflation report, lifted from multi-month lows on several peers.
It was broadly steady at $1.09065 to the euro and edged higher to 148.77 yen on Wednesday. The Australian dollar was held to $0.6541 after recoiling on Tuesday from resistance at its 200-day moving average at $0.6588.
US Jobless Claims Wait
More than 80% of economists in a Reuters poll said the Bank of Japan will end its negative interest rate policy next year, with more convinced the central bank is getting closer to exiting its controversial monetary stimulus programme.
China’s yuan, which has gained 2% in the past week and led Asian currencies higher against the dollar steadied at 7.1403. China’s major state-owned banks have been buying the yuan to hasten its recovery lately.
On the data front, bellwether Singapore’s economy grew faster than initial estimates in the third quarter, helped by a resurgence in tourism.
Later on Wednesday Reserve Bank of Australia Governor Michele Bullock makes a speech and US jobless claims are due.
In commodity markets Brent crude futures were at $82.32 per barrel, down 0.16% on the day. Singapore iron ore futures, up more than 10% for the month, held at $131 a tonne.
Bitcoin wobbled 1% lower to $36,416 as Binance chief Changpeng Zhao stepped down and pleaded guilty to breaking US anti-money laundering laws as part of a $4.3 billion settlement resolving a years-long probe into the crypto exchange.
Key figures
Tokyo – Nikkei 225 > UP 0.29% at 33,451.83 (close)
Hong Kong – Hang Seng Index > UP 0.01% at 17,734.60 (close)
Shanghai – Composite < DOWN 0.79% at 3,043.61 (close)
London – FTSE 100 < DOWN 0.04% at 7,478.95 (0937 GMT)
New York – Dow < DOWN 0.18% at 35,088.29 (Tuesday close)
- Reuters with additional editing by Sean O’Meara
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