Asia Stocks Fall in Early Trade Ahead of Jobs Data: Markets Wrap




  • In Business
  • 2022-10-07 00:01:27Z
  • By Bloomberg
 

(Bloomberg) -- Stocks in Asia fell in early trading following declines in the US as investors awaited a pivotal monthly payrolls report.

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Equities dropped in Australia, while futures declined for Japan and Hong Kong. Trading in South Korea may be dragged down by Samsung Electronics Co., which reported a profit drop for the first time since late 2019.

Stocks in the US fell for a second day, with the S&P 500 and tech-heavy Nasdaq 100 both ending near session lows. Advanced Micro Devices Inc. slid in late US trading after preliminary results disappointed, dragging chipmakers lower.

The latest economic data Thursday did little to bolster sentiment. While weekly initial jobless claims rose by more than forecast last week, they remained at a historically low level. The monthly jobs report is forecast to show employers added another 250,000 payrolls in September. That would be the fewest jobs added in a month since a decline in late 2020, but it's still a robust advance, indicative of a strong labor market. The unemployment rate is seen holding near a five-decade low of 3.7%, and average hourly earnings are set for another solid advance.

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The drumbeat of hawkish comments from Federal Reserve officials kept stocks on the back foot for much of the US session, thwarting brief attempts to rebound. Treasury yields were higher across the board and the dollar gained on Thursday.

Chicago Fed President Charles Evans said the benchmark rate will probably be at 4.5% to 4.75% by next spring as officials fret over high core inflation. Rates markets currently price a peak around 4.6% in the first half. Minneapolis Fed's Neel Kashkari said the central bank is "quite a ways away" from pausing its campaign of rate increases, while Cleveland Fed chief Loretta Mester noted the US is in an unacceptably high inflation environment.

Elsewhere, Canada's two-year yields hit the highest level since 2007 after the nation's central bank Governor Tiff Macklem said he remained firmly on a rate-hiking path amid worries about elevated domestic price pressures and inflation expectations becoming entrenched. The pound continued its rocky trajectory, tumbling back below $1.12, while UK gilt yields surged as traders braced for an end of the central bank's market backstop.

Shares in AMD dropped after preliminary third-quarter results fell short of analysts' projections, renewing concerns about a sputtering market for personal-computer chips. Nvidia Corp. and Intel Corp. were also lower in extended trading.

Twitter Inc. shares briefly jumped before turning lower in post-market trading, after a judge halted the court case against Elon Musk over his $44 billion purchase of the social media company, giving the parties until Oct. 28 to complete the deal. Talks between the two sides have been stuck after Musk said that his offer is now contingent on receiving $13 billion in debt financing.

Oil topped $88 a barrel in New York and Brent traded up near $95, extending gains a day after the OPEC+ alliance announced its biggest production cut since 2020. Oil prices could easily surge back above $100 a barrel next year as already-tight supplies could be further challenged by an increase in Chinese consumption, according to Global X Management.

Bitcoin, the largest digital coin by market value, slipped below $20,000.

Key events this week:

  • US unemployment, wholesale inventories, nonfarm payrolls, Friday

  • BOE Deputy Governor Dave Ramsden speaks at event, Friday

  • Fed's John Williams speaks at event, Friday

Some of the main moves in markets:

Stocks

  • S&P 500 futures fell 0.2% as of 8:08 a.m. Tokyo time. The S&P 500 fell 1%

  • Nasdaq 100 futures fell 0.3%. The Nasdaq 100 fell 0.8%

  • Japan's Topix index

  • South Korea's Kospi index

  • Australia's S&P/ASX 200 Index slides 0.6%

  • Hong Kong's Hang Seng futures fell 0.5%

Currencies

  • The Bloomberg Dollar Spot Index was little changed

  • The euro was little changed at $0.9790

  • The British pound

  • The Japanese yen rose 0.1% to 144.99 per dollar

  • The offshore yuan was little changed at 7.0843 per dollar

Bonds

  • The yield on 10-year Treasuries advanced seven basis points to 3.82%

  • Australia's 10-year yield advanced eight basis points to 3.86%

Cryptocurrencies

  • Bitcoin fell 0.6% to $19,927.6

  • Ether fell 1% to $1,350.24

Commodities

  • West Texas Intermediate crude rose 0.7% to $89.04 a barrel

  • Gold was little changed

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©2022 Bloomberg L.P.

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