Asia Stocks Start November Mixed; Pound Climbs: Markets Wrap
(Bloomberg) —
Stocks in Asia had a muted start Thursday after global equities rallied on the final two days of what was still their worst month in more than six years. The pound climbed on hopes for progress in Brexit negotiations.
Japanese stock indexes dipped while those in Australia and South Korea posted modest gains. Futures signaled gains for equities in Hong Kong and China. Earlier, technology giants rose and the S&P 500 Index posted its biggest two-day surge since February after Facebook’s earnings topped expectations. China’s yuan remained at the weakest level in a decade as China’s leadership signaled that further stimulus measures are being planned. The dollar slipped from a 16-month high and the 10-year Treasury yield reached 3.15 percent.
Sterling rose as the Times of London reported U.K. and European negotiators have reached a tentative agreement that would give U.K. financial services companies continued access to European markets after Brexit.
Firm U.S. economic data and a strongly worded statement from a China Politburo meeting chaired by President Xi Jinping signaling increased urgency for more measures to combat the slowing economy helped buoy sentiment toward risk assets. Bulls are hoping equities can build on a recovery at the end of October, that marked the worst month for global shares since May 2012. The focus turns to Apple Inc. earnings Thursday, then to the monthly U.S. jobs report Friday.
Elsewhere, oil capped its worst month in more than two years with a decline. The Indian rupee will be back in focus after paring a drop Wednesday as the finance ministry moved to diffuse growing tensions with the central bank.
Here are some key events still to come this week:
Earnings season includes: Macquarie, Apple, Alibaba, Credit Suisse, Exxon Mobil, and Shell. A monetary policy decision is due in the U.K. Thursday On Friday, the final U.S. jobs report before the November midterm elections may show hiring improved and that the unemployment rate held at a 48-year low.And these are the main moves in markets:
Stocks
Japan’s Topix index dropped 0.8 percent as of 9:32 a.m. in Tokyo. FTSE China A50 Index futures added 0.2 percent. Australia’s S&P/ASX 200 Index advanced 0.4 percent. South Korea’s Kospi index added 0.4 percent. Futures on Hong Kong’s Hang Seng rose 0.4 percent. S&P 500 futures rose 0.1 percent. The S&P 500 advanced 1.1 percent. The Nasdaq composite added 2 percent.
Currencies
The yen was steady at 112.80 per dollar. The offshore traded at 6.9799 per dollar, down 0.1 percent. The pound rose 0.4 percent to $1.2819. The Bloomberg Dollar Spot Index was little changed after increasing 0.2 percent to the highest in more than 17 months Wednesday. The euro bought $1.1316.
Bonds
The yield on 10-year Treasuries increased one basis point to 3.15 percent. Australia’s 10-year bond yield was steady at 2.63 percent.
Commodities
West Texas Intermediate crude dropped 0.5 percent to $65.01 a barrel, on track for a fourth consecutive decline. Gold futures added 0.2 percent to $1,216.72 an ounce.
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