(Bloomberg) -- A gauge of global stocks held to a monthly gain of more than 6% amid mixed trading in Asia on Tuesday as investors positioned for interest-rate hikes this week from the Federal Reserve and the European Central Bank.
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Equities benchmarks for Hong Kong, mainland China and Japan fluctuated. Futures for US indexes edged up in the wake of a torrid session on Wall Street that saw the Nasdaq 100 suffer its worst day since Dec. 22 as Apple Inc. and Microsoft Corp. weighed on the market.
Samsung Electronics Co. fell as much 3% in Seoul, weighing on South Korea's Kospi gauge, after profit slumped on poor demand for semiconductors and weakness in smartphones and memory chips.
A measure of dollar strength slipped marginally after the greenback climbed versus all its Group-of-10 counterparts on Monday. The yield on 10-year Treasuries was also little changed around 3.54%.
Traders in Asia are also focused on developments surrounding India's Adani Group, and economic data from China, where January purchasing managers' surveys beat expectations, reflecting a recovery in demand that should support the nation's asset prices.
Abu Dhabi's International Holding Co. has agreed to invest about $400 million in Adani Enterprises Ltd.'s follow-on share sale, providing a positive contrast to the onslaught that's wiped almost $70 billion from the market value of Gautam Adani's business empire. Adani bonds rebounded from record lows.
Hanging over everything is Wednesday's Fed decision, with the US central bank widely expected to raise rates by a quarter percentage point. Investors will be watching for the tone officials set for future meetings after Fed Chair Jerome Powell's consistent efforts to push back against traders anticipating rate cuts later this year.
The rally in stocks this month suggests the market has so far brushed off Powell's warning of "higher-for-longer" interest rates.
Those adding to the rally will be disappointed if they're in direct defiance of the Fed, a team of Morgan Stanley strategists led by Mike Wilson said in a note. Citi Global Wealth's Kristen Bitterly echoed this, saying that January's rally was technical as it was largely driven by 2022's "laggards and losers."
"Even after they've stopped on the rate hikes, there is still the quantitative tightening that still poses a threat for a lot of risk assets," Mary Nicola, a global multi-asset portfolio manager for PineBridge Investments, said in an interview with Bloomberg Radio.
Elsewhere in markets, oil steadied after slipping to a three-week low on Monday. Traders are waiting for more clues on Chinese demand, the Fed decision and the latest guidance from OPEC+.
Also on the agenda for the week are policy meetings in Europe and the UK on Thursday, and the US jobs report on Friday. A less tight labor market is a key goal for the Fed.
Key events this week:
China industrial profits, PMIs, Tuesday
Eurozone GDP, Tuesday
US Conference Board consumer confidence, Tuesday
Earnings Tuesday include: UBS, Unicredit, Snap and Advanced Micro Devices
Eurozone Manufacturing PMI, CPI, unemployment, Wednesday
US construction spending, ISM Manufacturing, light vehicle sales, Wednesday
FOMC rate decision, Fed Chair Jerome Powell press conference, Wednesday
Earnings Wednesday include: Meta Platforms and Peloton Interactive
Eurozone ECB rate decision, President Christine Lagarde press conference, Thursday
UK BOE rate decision, Thursday
US factory orders, initial jobless claims, US durable goods, Thursday
Earnings Thursday include: Alphabet, Apple, Amazon, Qualcomm and Deutsche Bank and Santander
Eurozone S&P Global Eurozone Services PMI, PPI, Friday
US unemployment, nonfarm payrolls, Friday
Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.2% as of 11:35 a.m. Tokyo time. The S&P 500 fell 1.3%
Nasdaq 100 futures rose 0.2%. The Nasdaq 100 fell 2.1%
Japan's Topix was little changed
Australia's S&P/ASX 200 rose 0.2%
Hong Kong's Hang Seng rose 0.3%
The Shanghai Composite was little changed
Euro Stoxx 50 futures fell 0.2%
Currencies
The Bloomberg Dollar Spot Index was little changed
The euro was little changed at $1.0853
The Japanese yen rose 0.2% to 130.09 per dollar
The offshore yuan was little changed at 6.7593 per dollar
The Australian dollar fell 0.1% to $0.7050
Cryptocurrencies
Bitcoin rose 0.6% to $22,887.34
Ether rose 1% to $1,572.82
Bonds
The yield on 10-year Treasuries was little changed at 3.54%
Japan's 10-year yield rose 0.5 basis point to 0.48%
Australia's 10-year yield was little changed at 3.54%
Commodities
West Texas Intermediate crude was little changed
Spot gold rose 0.1% to $1,925.23 an ounce
This story was produced with the assistance of Bloomberg Automation.
--With assistance from Isabelle Lee, Rheaa Rao, Rob Verdonck and Richard Henderson.
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