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Stocks Open Mixed as Stimulus, Weaker Data Weighed: Markets Wrap
(Bloomberg) -- Stocks in Asia began the week in muted fashion amid further signs of economic softening alongside moves by monetary policy makers to address them.Equities in Japan and Australia opened little changed, while South Korean shares eked out gains. On Friday, the People’s Bank of China said it will cut the amount of cash banks must hold as reserves to the lowest level since 2007, injecting liquidity into an economy facing both a domestic slowdown and trade-war headwinds. S&P 500 futures and Treasuries were steady, following a flat end to last week for American stocks and bonds as Federal Reserve Chairman Jerome Powell’s last speech before next week’s policy meeting cemented views for another interest-rate reduction.As the U.S.-China trade war rumbles on with more high-level talks expected next month, data over the weekend showed China’s exports unexpectedly contracted in August and last week’s U.S. employment report was weaker than many forecast. With expectations already running high for central banks around the world to offer more support to economies, traders remain on edge.“There has been a tremendous rally in bonds and the central banks are the key determinant of what’s going to happen with the rates market. With equities there is still an element of self-determination,” Frances Hudson, global thematic strategist for multi-asset investing at Aberdeen Standard Investments, told Bloomberg TV. “Good companies will survive and thrive, irrespective of the rates backdrop. At the moment equities can offer both income and growth.”Elsewhere, the pound was steady. Boris Johnson isn’t giving up his Brexit plan, despite the latest Tory defection. The British Prime Minister remains committed to pulling the U.K. out of the EU by the end of next month and may challenge legislation requiring him to ask for a delay if there’s no deal by Oct. 19, Foreign Secretary Dominic Raab said.Meantime, Typhoon Faxai made land fall near Tokyo early Monday morning, causing widespread disruptions to commuters and cutting off power to around 90,000 homes. In Hong Kong, small pockets of demonstrators on Sunday set fires, vandalized subway stations and set up barricades downtown. Tens of thousands marched peacefully to the U.S. consulate to appeal for help from President Donald Trump. Here are some key events coming up this week:The U.K. Parliament may be suspended as soon as Monday, and a bill blocking a no-deal Brexit could become law. That bill would derail Prime Minister Boris Johnson’s strategy and could trigger the opposition Labour Party to agree to a general election.OPEC’s monthly oil market report, which includes demand forecasts and production estimates, is due Wednesday.The European Central Bank policy meeting Thursday is widely expected to see a cut to interest rates and a review of all options, including QE. Policy makers will also publish forecasts for growth and inflation. ECB President Mario Draghi will hold a press conference.These are the main moves in markets:StocksJapan’s Topix index added 0.1% as of 9:03 a.m. in Tokyo. South Korea’s Kospi rose 0.3%Futures on the S&P 500 Index added less than 0.1%. The underlying gauge rose 0.1% on Friday.Australia’s S&P/ASX 200 Index slid 0.2%.CurrenciesThe yen was flat at 106.92 per dollar.The offshore yuan remained at 7.1095 per dollar.The euro bought $1.1020, down 0.1%.The British pound was at $1.2280.The kiwi rose 0.4% to 64.27 U.S. cents.BondsThe yield on 10-year Treasuries remained at 1.56%.Australia’s 10-year yield dropped five basis points to 1.04%.CommoditiesGold was steady at $1,507.03 an ounce.West Texas Intermediate oil added 0.7% to $56.90 a barrel.\--With assistance from April Ma and Paul Allen.To contact the reporters on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net;Gregor Stuart Hunter in Hong Kong at ghunter21@bloomberg.netTo contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Andreea PapucFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
https://finance.yahoo.com/news/asian-stocks-set-muted-start-213626003.html?.tsrc=rss
(Bloomberg) -- Stocks in Asia began the week in muted fashion amid further signs of economic softening alongside moves by monetary policy makers to address them.Equities in Japan and Australia opened little changed, while South Korean shares eked out gains. On Friday, the People’s Bank of China said it will cut the amount of cash banks must hold as reserves to the lowest level since 2007, injecting liquidity into an economy facing both a domestic slowdown and trade-war headwinds. S&P 500 futures and Treasuries were steady, following a flat end to last week for American stocks and bonds as Federal Reserve Chairman Jerome Powell’s last speech before next week’s policy meeting cemented views for another interest-rate reduction.As the U.S.-China trade war rumbles on with more high-level talks expected next month, data over the weekend showed China’s exports unexpectedly contracted in August and last week’s U.S. employment report was weaker than many forecast. With expectations already running high for central banks around the world to offer more support to economies, traders remain on edge.“There has been a tremendous rally in bonds and the central banks are the key determinant of what’s going to happen with the rates market. With equities there is still an element of self-determination,” Frances Hudson, global thematic strategist for multi-asset investing at Aberdeen Standard Investments, told Bloomberg TV. “Good companies will survive and thrive, irrespective of the rates backdrop. At the moment equities can offer both income and growth.”Elsewhere, the pound was steady. Boris Johnson isn’t giving up his Brexit plan, despite the latest Tory defection. The British Prime Minister remains committed to pulling the U.K. out of the EU by the end of next month and may challenge legislation requiring him to ask for a delay if there’s no deal by Oct. 19, Foreign Secretary Dominic Raab said.Meantime, Typhoon Faxai made land fall near Tokyo early Monday morning, causing widespread disruptions to commuters and cutting off power to around 90,000 homes. In Hong Kong, small pockets of demonstrators on Sunday set fires, vandalized subway stations and set up barricades downtown. Tens of thousands marched peacefully to the U.S. consulate to appeal for help from President Donald Trump. Here are some key events coming up this week:The U.K. Parliament may be suspended as soon as Monday, and a bill blocking a no-deal Brexit could become law. That bill would derail Prime Minister Boris Johnson’s strategy and could trigger the opposition Labour Party to agree to a general election.OPEC’s monthly oil market report, which includes demand forecasts and production estimates, is due Wednesday.The European Central Bank policy meeting Thursday is widely expected to see a cut to interest rates and a review of all options, including QE. Policy makers will also publish forecasts for growth and inflation. ECB President Mario Draghi will hold a press conference.These are the main moves in markets:StocksJapan’s Topix index added 0.1% as of 9:03 a.m. in Tokyo. South Korea’s Kospi rose 0.3%Futures on the S&P 500 Index added less than 0.1%. The underlying gauge rose 0.1% on Friday.Australia’s S&P/ASX 200 Index slid 0.2%.CurrenciesThe yen was flat at 106.92 per dollar.The offshore yuan remained at 7.1095 per dollar.The euro bought $1.1020, down 0.1%.The British pound was at $1.2280.The kiwi rose 0.4% to 64.27 U.S. cents.BondsThe yield on 10-year Treasuries remained at 1.56%.Australia’s 10-year yield dropped five basis points to 1.04%.CommoditiesGold was steady at $1,507.03 an ounce.West Texas Intermediate oil added 0.7% to $56.90 a barrel.\--With assistance from April Ma and Paul Allen.To contact the reporters on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net;Gregor Stuart Hunter in Hong Kong at ghunter21@bloomberg.netTo contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Andreea PapucFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
https://finance.yahoo.com/news/asian-stocks-set-muted-start-213626003.html?.tsrc=rss
