Asian Stocks Drift; China’s Yuan Extends Advance: Markets Wrap

Cornelia Mascio
Settembre 15, 2020

The yuan rose to the highest this year. "The recovery in China has become more balanced and broad-based", HSBC economists said in a report. The S&P 500 Index gained 1.3%.Topix index fell 0.5%.Australia's S&P/ASX 200 Index rose 0.3%.South Korea's Kospi index rose 0.3%.Hong Kong's Hang Seng Index futures were little changed.

Strategists expect Japanese equities to take support from Suga's win. "The fact that we've got political certainty for the next two years from someone who's connected to the free market is going to be good news for Japan", said Jim McCafferty, joint head of Asia Pacific equity research at Nomura.

"From an asset class point of view, if you require to generate any income from your investment portfolio, then equities is one of the few places you can do that because bond yields are so low", said McCafferty, who prefers North Asian companies due to their stronger balance sheets.

In U.S. pre-market trading, Nikola Corp. dropped after Bloomberg News reported that the U.S. Securities and Exchange Commission is examining the company to assess the merits of a short-seller's allegations that the electric-truck maker deceived investors about its business prospects.

China industrial production and retail sales data is due on Tuesday.Wednesday sees the FOMC policy decision and news conference from Chair Jerome Powell.Bank of Japan, Bank Indonesia and Bank of England policy decisions come Thursday.Friday sees quadruple witching for USA markets when the quarterly expiration of futures and options on indexes and stocks happens on the same day.

Asian stocks drifted Tuesday as investors turned their attention to a Federal Reserve meeting for clues on monetary policy as economies recover from the pandemic.

Bank of Japan, Bank Indonesia and Bank of England policy decisions come Thursday.

Markets will be focused on projections from Fed policymakers on the US growth outlook and on any details about what the bank intends to do to encourage inflation.

The Dow Jones Industrial Average .DJI closed up 1.2% and the S&P 500 .SPX rose 1.3% while the tech-heavy Nasdaq Composite .IXIC added 1.9%. "Valuations have risen, and we could see greater volatility as a result, especially as the USA election closes in". Japan's Nikkei 225 futures were flat after Chief Cabinet Secretary Yoshihide Suga won a ruling party leadership election, paving the way for him to succeed Prime Minister Shinzo Abe. US equity futures advanced and the euro strengthened.

The dollar index slipped to 93.029, dipping further from a one-month high of 93.664 touched last week.

The euro ticked up to US$1.1867, having gained for four straight sessions until Monday.

United States crude recently rose 0.35 percent to $37.39 per barrel. U.S. West Texas Intermediate (WTI) crude futures were down 0.1% at $37.2 a barrel.

Gold prices put on 0.6%, extending a sharp rise in the previous session.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE