published Nov 15, 2018, 7:34:26 PM, by Adam Haigh
(Bloomberg) —

Asian equities rounded out the week in mixed fashion as investors gauge whether China and the U.S. can de-escalate their trade spat before the G-20 summit later this month.

Stocks slipped in Japan and Hong Kong, and were little changed in South Korea, China and Australia. While trade-sensitive industrial shares led the S&P 500 Index higher and tech stocks rebounded, U.S. futures fell after Nvidia Corp. gave a disappointing sales forecast and Commerce Secretary Wilbur Ross dampened hopes of any imminent U.S.-China deal. The pound steadied after Thursday’s plunge as Brexit again threw the U.K. government into turmoil. The dollar retreated and Treasuries were steady. Oil held below $57 a barrel in New York.

Equity markets remain volatile as the slowing Chinese economy and uncertain outlook for earnings coincide with investors continuing to adjust to the effects of tightening U.S. monetary policy. Political tensions in Europe from the U.K. to Italy are also hitting sentiment.

“Maybe if we can get progress in trade relations, that could be a boost,” Jason Browne, chief investment strategist at FundX Investment Group, said in an interview. “But the benefits are likely to get offset from expectations of continued hikes from the Fed. That’s part of the challenge right now.”

Sterling tumbled as several ministers resigned and questions of a leadership challenge arose. The events throw into doubt Prime Minster Theresa May’s ability to secure Parliament’s support for the exit plan — and even to survive as leader. As the Westminster resignations rolled in, gilts surged, but at a press conference late Thursday, the premier reiterated her commitment to the exit deal.

Elsewhere, emerging market currencies edged higher. Gold climbed alongside most industrial metals.

Coming Up

Malaysia’s economic growth probably picked up in the third quarter as a tax holiday boosted household spending, economist forecast ahead of the GDP data release Friday.

These are the main moves in markets:

Stocks

Japan’s Topix index slid 0.3 percent as of 10:25 a.m. in Tokyo. The Shanghai Composite added 0.1 percent. Hong Kong’s Hang Seng fell 0.2 percent. Australia’s S&P/ASX 200 Index advanced 0.1 percent. South Korea’s Kospi rose 0.2 percent. The S&P 500 Index gained 1.1 percent. Futures slid 0.3 percent. Nasdaq 100 futures slipped 0.8 percent.

Currencies

The yen rose 0.1 percent to 113.49 per dollar. The offshore yuan held at 6.9239 per dollar. The Bloomberg Dollar Spot Index fell less than 0.1 percent Thursday. The euro bought $1.1339, up 0.1 percent. The British pound was at $1.2786 after sliding 1.7 percent.

Bonds

The yield on 10-year Treasuries held at 3.11 percent. Australia’s 10-year yield sank two basis points to 2.69 percent.

Commodities

West Texas Intermediate crude was up 0.1 percent to $56.52 a barrel. Gold rose 0.2 percent to $1,216.14 an ounce. LME copper gained 0.3 percent to $6,200 a metric ton.

–With assistance from Vildana Hajric.To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net Cormac Mullen
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