Stocks in Asia are poised to decline after US benchmarks slid on Tuesday as fears of a banking crisis resurfaced. Losses may be tempered after robust earnings from Microsoft Corp and Alphabet Inc. buoyed US futures.
(Bloomberg) — Stocks in Asia are poised to decline after US benchmarks slid on Tuesday as fears of a banking crisis resurfaced. Losses may be tempered after robust earnings from Microsoft Corp and Alphabet Inc. buoyed US futures.
Contracts for equity indexes in Japan, Australia and Hong Kong all declined after the S&P 500 slid 1.6% on Tuesday and the Nasdaq 100 slipped 1.9%.
US futures advanced after markets closed in New York, following better-than-expected earnings from Microsoft Corp. and Alphabet Inc. that sparked an after-hours rally in their shares.
First Republic Bank shares tumbled 49% after the lender’s disappointing earnings on Monday, rekindling fears over the health of the US banking sector. The bank is exploring an asset sale of up to $100 billion of long-dated mortgages and securities as part of a rescue plan, Bloomberg reported Tuesday.
Treasuries rallied across the curve. The benchmark 10-year yield fell nine basis points to 3.40%, while the policy-sensitive two-year yield fell 13 basis points. Bloomberg’s dollar index gained as investors bought the US currency as a haven.
Elsewhere, earnings were mixed. UBS Group AG shares slid after results fell short of expectations, while Spotify Technology SA rose 5% after subscriber number surged. McDonald’s Corp. was little changed after beating sales estimates, and Danaher Corp. dropped 8.8% after lowering full-year guidance.
“A soft landing in the economy this year is a pipe dream,” Matt Maley, chief market strategist at Miller Tabak + Co, wrote in a note. “When was the last time a material contraction in credit did not result in a recession? The answer: Never.”
Oil fell, gold was little changed and iron ore extended a losing streak to a fifth day.
Australia’s dollar edged higher before inflation data due Wednesday, while Sweden’s central bank will announce a policy decision.
Key events this week:
- Australia CPI, Wednesday
- Sweden rate decision, Wednesday
- Eurozone economic, consumer confidence, Thursday
- US initial jobless claims, GDP, Thursday
- Bank of Japan meets on interest rates, Friday
- Euro-area GDP, Friday
- US personal income, Friday
Earnings highlights:
- Wednesday: Boeing, Meta, Hilton
- Thursday: Amazon, American Airlines, Intel, Mastercard, Southwest Airlines, Hershey, Honeywell, Barclays
Some of the main moves in markets:
Stocks
- S&P 500 futures rose 0.5% as of 7:14 a.m. Tokyo time. The S&P 500 fell 1.6%
- Nasdaq 100 futures rose 1.3%. The Nasdaq 100 fell 1.9%
- Nikkei 225 futures fell 0.7%
- Hang Seng futures fell 0.9%
- S&P/ASX 200 futures fell 0.5%
Currencies
- The Bloomberg Dollar Spot Index rose 0.4%
- The euro was little changed at $1.0978
- The Japanese yen was little changed at 133.77 per dollar
- The offshore yuan was little changed at 6.9414 per dollar
Cryptocurrencies
- Bitcoin rose 1.1% to $28,281.23
- Ether rose 0.5% to $1,869.33
Bonds
- The yield on 10-year Treasuries declined nine basis points to 3.40%
- Australia’s 10-year yield was little changed at 3.45%
Commodities
- West Texas Intermediate crude rose 0.2% to $77.20 a barrel
- Spot gold was little changed
This story was produced with the assistance of Bloomberg Automation.
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