SYDNEY (Aug 29): Asian stocks looked set for a muted start as U.S. equities swung through much of the session, while Treasury yields climbed as investors assessed the latest developments from the Trump administration’s trade policies.
Futures pointed to a flat start for equities in Japan, while shares in Hong Kong and Australia were poised to decline. The S&P 500 fluctuated throughout the day, rising past 2,900 for the first time before slipping back below that level, with rate-sensitive shares retreating as the 10-year Treasury yield moved toward 2.90 percent. The dollar pushed higher.
Gains for equities are being tested after U.S. stocks hit a fresh all-time high and Chinese shares rebounded off this month’s lows amid signs of central bank support. Appetite for risk assets remain fragile as hopes for a trade breakthrough between America and China are questioned.
Elsewhere, the Mexican peso failed to hold onto Monday’s gains as investors clamored for details and clarity on where a new trade agreement with the U.S. leaves Canada.
Here are some key events coming up this week:
* Earnings are due from companies including Pernod Ricard and Dollar General.
* China’s official factory PMI are due Friday.
* The U.S. economy probably grew in the second quarter at a slightly slower pace, economists predict ahead of Wednesday’s report.
* The Bank of Korea sets policy on Friday. Weak jobs growth has cooled speculation of an interest-rate increase.
These are the main moves in markets:
* Futures on Japan’s Nikkei 225 held near to levels seen when the cash market closed Tuesday.
* Futures on Hong Kong’s Hang Seng Index dropped 0.2 percent.
* Futures on Australia’s S&P/ASX 200 Index lost 0.1 percent.
* The S&P 500 rose less than one point to a record 2,897.52.
* The yen was at 111.18 per dollar.
* The offshore yuan traded at 6.8006 per dollar.
* The Bloomberg Dollar Spot Index rose 0.2 percent Tuesday.
* The euro bought $1.1694.
* The yield on 10-year Treasuries rose three basis points to 2.88 percent.
* Gold futures were flat at $1,201.26 an ounce.
* WTI crude dropped 0.5 percent to $68.53 a barrel.