Asian stocks edge up after rout; treasuries steady: Markets wrap

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Published: October 29, 2018 6:33:35 AM

Shares in Japan, Australia and South Korea rose, while Hong Kong and China futures pointed to a higher start.

Global equities will face more tests this week amid a slew of earnings releases. (Representational photo)

Asian stocks edged higher with U.S. stock futures, indicating some respite from the recent global sell-off at the start of the week. The dollar steadied and Treasury yields were little changed.

Shares in Japan, Australia and South Korea rose, while Hong Kong and China futures pointed to a higher start. U.S. futures advanced after the S&P 500 finished on Friday just short of a 10 percent decline from its record September high and on pace for the worst month since 2009. The offshore yuan held near the lowest level in a decade amid expectations China will ease policy to stem a growth slowdown.

Global equities will face more tests this week amid a slew of earnings releases. Traders are paring wagers on Fed rate hikes for next year, with markets now expecting fewer than two quarter-point increases in 2019, compared with three that policy makers project.

Elsewhere, the euro slipped as Germany’s governing parties fell to their worst results in decades in a vote in Frankfurt’s home state of Hesse, delivering another blow to Chancellor Angela Merkel. A Brazilian equity exchange-traded fund listed in Japan jumped after far-right candidate Jair Bolsonaro won the presidential election.

Terminal users can read our Markets Live blog.

Here are some key events coming up this week:

Highlights from earnings season will include: Facebook, HSBC, Komatsu, Ping An Insurance, PetroChina, Macquarie, Apple, Alibaba, China Telecom, Fanuc, GE, Airbus, Credit Suisse, Exxon Mobil, Shell and BP. Monetary policy decisions are due in Japan and the U.K. On Friday, the final U.S. jobs report before the November midterm elections may show hiring improved as payrolls rose about 190,000, and the unemployment rate held at a 48-year low of 3.7 percent, analysts forecast.
These are the main moves in markets:

Stocks
Japan’s Topix index added 0.9 percent as of 9:03 a.m. in Tokyo. Australia’s S&P/ASX 200 Index rose 0.7 percent. South Korea’s Kospi added 0.6 percent. FTSE China A50 Index futures added 0.9 percent. Futures on Hong Kong’s Hang Seng Index advanced 0.8 percent. S&P 500 futures rose 0.2 percent. The S&P 500 dropped 1.7 percent Friday, when the Nasdaq Composite Index declined 2.1 percent.

Currencies
The yen was at 111.94 per dollar. The offshore yuan was steady at 6.9531 per dollar. The Bloomberg Dollar Spot Index ticked higher. It fell 0.3 percent Friday after reaching a 17-month high. The euro bought $1.1398.

Bonds
The yield on 10-year Treasuries held at 3.08 percent. Two-year yields remained at 2.81 percent after tumbling almost 10 basis points last week, the most since 2016. Australia’s 10-year bond yield fell two basis points to 2.58 percent.

Commodities
West Texas Intermediate crude added 0.2 percent to $67.70 a barrel. Gold was flat at $1,232.66 an ounce.

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