Asian stocks decline; Yen reduces losses after fall: markets fall

(Bloomberg) — Stocks in Asia fell after U.S. technology companies fell in late U.S. trading. The yen has stabilized after a drop on Wednesday that sparked fresh speculation that authorities will intervene to support the currency.

Bloomberg’s Most Read

Stocks in Japan, Australia and China fell, putting the MSCI Asia-Pacific gauge on track for its first loss in three days. U.S. stock futures fell after big technology companies were hit by the outlook for Micron Technology Inc., which failed to meet lofty expectations for the industry that drove the bull market in stocks.

The yen rose slightly on Thursday after falling 0.7% in the previous session when it hit 160.87 per dollar, the weakest level since 1986 and well beyond the level at which authorities intervened in April. The currency has lost more than 12% against the dollar this year.

A gauge of emerging market currencies fell to near its lowest level in two months and a gauge of Asian currencies fell to levels last seen in 2022 as traders flocked to the safety of the dollar. Treasuries extended their recent declines on concerns that Friday’s US PCE data shows inflation remains high.

“It’s all about the Fed – going higher longer is about keeping the initial cap on rates very high, attracting money to the U.S. and keeping the dollar strong,” said Andrew Brenner, head of international fixed income at NatAlliance Securities LLC. For Japan, “it’s a problem,” he said.

Shares of Micron Technology fell after the maker of computer memory chips projected sales that fell short of some investors’ estimates. The news knocked some chipmakers, including giant Nvidia Corp., off their feet.

Also after the Wall Street shutdown, the Federal Reserve said the largest US banks passed the annual stress test, paving the way for higher payouts to shareholders.

The market’s recent attempt to broaden out of the mega-cap group was short-lived, with a suite of measures still showing how market breadth remains weak – increasing uncertainty about the recovery’s staying power. The bifurcation between the performance and breadth of the S&P 500 has reached one of the worst levels in three decades, according to Bloomberg Intelligence.

“The stock market is too reliant on big tech – period and end of story,” said David Bahnsen of The Bahnsen Group. “Whether or not last week’s volatility in technology is the start of something deeper or whether that reckoning is yet to come remains to be seen, but excessive investor sentiment, euphoria and over-the-top momentum always end in same way.”

The story continues

Elsewhere in the world, dollar bond sales by Asia-Pacific companies and governments in the primary market this week hit a nine-month high, as issuers look to lock in historically tight spreads before widening further. .

India’s $1.3 trillion sovereign debt market has become a magnet for global investors. However, this new interest highlights how difficult it can be for outsiders to do business in the world’s most populous country.

In commodities, gold steadied after a two-day slide, while West Texas Intermediate fell.

Main events this week:

• China’s industrial profits, Thursday

• Eurozone economic confidence, consumer confidence, Thursday

• US Durable Goods, Initial Unemployment Claims, GDP, Thursday

• Nike releases results Thursday

• Japan Tokyo CPI, unemployment, industrial production, Friday

• US PCE Inflation, Spending and Income, Consumer Sentiment from the University of Michigan, Friday

• Fed’s Thomas Barkin Speaks on Friday

Some of the main movements in the markets:

Actions

• S&P 500 futures were down 0.3% at 11:35 a.m. Tokyo time

• Nikkei 225 (OSE) futures fell 0.8%

• Japan’s Topix fell 0.4%

• Australia’s S&P/ASX 200 fell 1%

• Hong Kong’s Hang Seng fell 1.8%

• The Shanghai Composite fell 0.7%

• Euro Stoxx 50 futures fell 0.3%

• Nasdaq 100 futures fell 0.4%

Coins

• The Bloomberg Dollar Spot index was little changed

• The euro was little changed at $1.0691

• The Japanese yen rose 0.2% to 160.47 per dollar

• The offshore yuan was little changed at 7.2956 per dollar

• The Australian dollar was little changed at $0.6650

Cryptocurrencies

• Bitcoin little changed at $60,951.35

• Ether fell 0.2% to $3,382.55

Titles

• The 10-year Treasury yield was little changed at 4.34%

• Japan’s 10-year yield rose 4.5 basis points to 1.075%

• Australia’s 10-year yield rose nine basis points to 4.40%

goods

This story was produced with help from Bloomberg Automation.

Bloomberg Businessweek Most Read

©2024 Bloomberg LP