Asian stocks trade mixed with earnings in focus: Markets wrap

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Published: January 14, 2019 8:23:51 AM

Asian stocks were mixed on Monday, following the best week for regional stocks since the start of November, as investors awaited a raft of earnings and the January rally in risk assets showed signs of abating. The yuan edged lower after recent gains.

Asian stocks trade mixed with earnings in focus: Markets wrap

Asian stocks were mixed on Monday, following the best week for regional stocks since the start of November, as investors awaited a raft of earnings and the January rally in risk assets showed signs of abating. The yuan edged lower after recent gains.

Shares in Australia advanced, while South Korean stocks dipped and futures indicated a small decline when equity trading begins in Hong Kong. U.S. equity futures slipped after the S&P 500 on Friday closed flat and the yield on 10-year Treasuries declined. Japan is closed for a holiday, so Treasuries won’t trade until the London open.

Signs of progress in U.S.-China trade talks and dovish commentary from Federal Reserve officials have buoyed a rally in global equities in January. The next hurdle to clear will be a slew of U.S. bank profit reports and an earnings season, amid worries global growth is slowing. Also weighing on sentiment is the partial U.S government shutdown that’s entered its fourth week.

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Elsewhere, oil headed toward $52 a barrel. The pound was steady ahead of Tuesday’s crucial vote on Brexit, with Prime Minister Theresa May appearing no closer to getting the backing she needs.

Here are some important events coming up:

Some of the world’s biggest banks announce earnings, including Citigroup, JPMorgan, Bank of America, Wells Fargo, Morgan Stanley and Goldman Sachs. Alcoa, Indian IT company Mindtree, Netflix, Taiwan Semiconductor, American Express and BlackRock also post results. China trade data is released on Monday. U.K. Parliament will vote on the Brexit deal.

These are the main moves in markets:

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Stocks
The MSCI Asia Pacific Index was little changed as of 8:47 a.m. Hong Kong time, after last week’s 4.1 percent advance. Futures on Hong Kong’s Hang Seng slid 0.2 percent. Australia’s S&P/ASX 200 Index added 0.2 percent. Futures on the S&P 500 slid 0.4 percent. The S&P 500 Index ended Friday little changed.

Currencies
The yen was steady at 108.44 per dollar. The offshore yuan lost 0.1 percent to 6.7660 per dollar. The euro fell 0.1 percent to $1.1463. The British pound added 0.1 percent to $1.2862.

Bonds
The yield on 10-year Treasuries fell four basis points to 2.70 percent on Friday. Australia’s 10-year bond yield dipped about one basis point to 2.30 percent.

Commodities
The Bloomberg Commodity Index added 0.2 percent on Friday. West Texas Intermediate crude rose 0.6 percent to $51.89 a barrel. Gold slipped 0.1 percent to $1,288.61 an ounce.

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