Asia Faces Mixed Start After U.S. Stocks Decline: Markets Wrap
published Dec 5, 2017, 5:13:22 PM, by Adam Haigh
Asian equity markets looked set for a mixed start to Wednesday trading following an afternoon sell-off in U.S. equities as traders await catalysts that would provide reason to add to risk assets before the year draws to a close. Industrial metals sank.
Equity-index futures in Japan fell, while contracts tracking Hong Kong stocks climbed. Australia’s benchmark opened lower. American shares dropped, with an afternoon swoon wiping out early gains for a second straight day, as investors assessed the impact of proposed tax cuts. Copper’s biggest plunge in almost three years hit mining shares and made Chile’s peso among the worst performing currencies in emerging markets. Ten-year Treasury yields slid to 2.35 percent, while the dollar rose. The pound extended a decline amid stalled Brexit negotiations.
A surge in global equities that drove indexes to record highs has stalled as investors lock in profits. Friday’s U.S. jobs report is the next big data release on the calendar, following Australia’s GDP report on Wednesday. House and Senate lawmakers are poised to begin working on compromise tax-overhaul legislation — a key step in their drive to send a bill with tax cuts for corporations and individuals to President Donald Trump by the end of the year.
Here are some of the key events facing markets in the coming days:
The European Commission College of Commissioners discusses Brexit on Wednesday and will likely make its recommendation on whether sufficient progress has been made to move negotiations onto the future relationship. The U.S. faces a partial government shutdown after money runs out on Dec. 8 if Congress can’t agree on a spending bill by then. U.S. employers probably hired at a robust pace in November as the unemployment rate held at an almost 17-year low. The Labor Department’s jobs report Friday may also show a bump up in average hourly earnings.
These are the main moves in markets:
The S&P 500 Index futures were little changed as of 8:02 a.m. in Tokyo. The underlying gauge slipped 0.4 percent. Futures on Japan’s Nikkei 225 Stock Average dipped 0.6 percent in Singapore trading. Futures on Hong Kong’s Hang Seng Index rose 0.3 percent. Australia’s S&P/ASX 200 Index declined 0.3 percent.
The Bloomberg Dollar Spot Index increased 0.2 percent. The yen was steady at 112.56 per dollar. The euro was little changed at $1.1828. The pound remained lower, decreasing 0.3 percent to $1.3410 after a 0.3 percent drop on Tuesday.
The yield on 10-year Treasuries fell two basis points to 2.35 percent. Australia’s 10-year yield declined five basis points to 2.55 percent.
West Texas Intermediate crude fell 0.3 percent to $57.47 a barrel. Gold was at $1,266.19 an ounce, near the lowest since August, after falling 0.8 percent. Copper futures were steady after slumping 4.7 percent.
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