Stock Slide Extends to Asia; Treasuries Steady: Markets Wrap




 

(Bloomberg) -- Asian stocks followed their U.S. counterparts lower Tuesday as turmoil in Hong Kong and Argentina added to trade tensions and knocked sentiment.

Shares fell across the region led by Japan and Hong Kong, where stocks reacted to protesters bringing the city's airport to a standstill on Monday. U.S. futures ticked higher. Earlier, the S&P 500 Index retreated for a second day and now sits almost 5% below its all-time high. The dollar firmed and yen slipped, while Treasury yields steadied after Monday's slide. China's 10-year bond yield fell to 3% for the first time since 2016.

The latest sell-off in risk assets provided another reminder of the fragile mood across markets extending the rocky start to August. Government bond gains show ongoing caution by traders who've increased bets for more central bank stimulus in recent weeks, as the U.S. and China escalate their trade war and a slew of global data point to slowing growth.

Argentina's peso and equities sank after voters turned on the president in a primary vote. Singapore's government cut its forecast for economic growth this year to almost zero as the trade war dampens the region's most trade-reliant economies.

Elsewhere, oil was little changed after Saudi Aramco's first-half earnings contained no surprises for the market. Gold headed higher above $1,500 an ounce.

Here are some key events coming up:

Companies releasing results include China's Tencent, JD.com and Alibaba, Cisco, Brazilian utility Eletrobras, the U.K.'s Prudential, Australia's Telstra, giant retailer Walmart, Nvidia, Swisscom and the Danish brewer Carlsberg.The U.S. consumer price index, out Tuesday, probably picked up to a 1.7% annual pace in July, according to economist estimates. Core prices, which exclude food and energy, are seen rising 2.1%.Wednesday brings data on China retail sales, industrial production and the jobless rate.Thursday sees the release of U.S. jobless claims, industrial production and retail sales data.

These are the main moves in markets:

Stocks

The MSCI Asia Pacific Index fell 1.1% as of 12:31 p.m. in Tokyo.Japan's Topix Index fell 1.2%.Hong Kong's Hang Seng Index declined 1.5%.Shanghai Composite Index dropped 0.7%.Korea's Kospi index fell 0.7%.Australia's S&P/ASX 200 Index fell 0.2%.S&P 500 futures rose 0.2%. Earlier, the S&P 500 Index fell 1.2%.

Currencies

The yen fell 0.2% to 105.49 per dollar after rising for fourth day.The offshore yuan was stable at 7.0993 per dollar.Bloomberg Dollar Spot Index rose 0.1%.The euro was trading at $1.1187, down 0.2%.

Bonds

The yield on 10-year Treasuries was steady at 1.65%.Australia's 10-year yields fell 1 basis point to 0.95%.China's 10-year yield fell 1 basis point to briefly touch 3%.

Commodities

Gold rose 0.3% to $1,515.52 an ounce.West Texas Intermediate crude fell 0.1% to $54.87 a barrel.

--With assistance from Sarah Ponczek and Olivia Rinaldi.

To contact the reporter on this story: Andreea Papuc in Sydney at apapuc1@bloomberg.net

To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Cormac Mullen, Joanna Ossinger

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.

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