Stocks in Asia are set for a muted opening after US shares drifted and Treasuries gained in low volumes as investors digested mixed corporate earnings and economic data.
(Bloomberg) — Stocks in Asia are set for a muted opening after US shares drifted and Treasuries gained in low volumes as investors digested mixed corporate earnings and economic data.
Contracts for equity benchmarks in Japan advanced, while those in Australia also climbed although the country’s equity market will be shut Tuesday for a holiday. Hong Kong stock futures dropped.
US equity futures also inched lower in early Asian trade after the S&P 500 closed just 0.1% higher and the tech-heavy Nasdaq 100 fell 0.2%. That extended to seven the number of trading days when the two indexes have both moved less than 1%.
The CBOE VIX index of equity volatility remained near the 17-month year low reached last week, which some strategists worry is providing a false sense of calm.
The Treasury 10-year yield fell eight basis points, the biggest one-day decline since March, while the policy-sensitive two-year yield dropped nine basis points. The Bloomberg dollar index fell.
Investors also trimmed bets on US interest-rate hikes, according to the futures market. The market pricing now indicates rates will sit below 4.5% by year-end after peaking in June.
The small shifts underscore the lack of direction at the start of a busy week for economic data and corporate earnings. US manufacturing data was weaker than economists forecast and uncertainty over the debt ceiling persisted. Later this week, US GDP data is forecast to reveal slower growth, and the so-called core PCE deflator, the Fed’s preferred inflation gauge, is expected to show price growth cooled.
“Economic data continues to deny investors an obvious growth or policy signal,” Dennis Debusschere, a strategist at 22V Research in New York, wrote in a research note. “Demand isn’t falling fast enough to signal an imminent recession, but there are no indications of a re-acceleration.”
First Republic Bank fell in postmarket trading after earnings exceeded forecasts but deposits were lower than expected. UBS Group AG shares climbed after takeover target Credit Suisse AG reported outflows that were lower than some analysts predicted. Microsoft Corp., Meta Platforms Inc. and Amazon.com Inc. report later this week.
Key events this week:
- US new home sales, consumer confidence, Tuesday
- South Korea GDP, Tuesday
- 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:
- Tuesday: Pepsi, General Motors, General Electric, McDonalds, Microsoft, UBS, UPS
- 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 were little changed as of 7:06 a.m. Tokyo time. The S&P 500 rose 0.1%
- Nasdaq 100 futures fell 0.1%. The Nasdaq 100 fell 0.2%
- Nikkei 225 futures rose 0.2%
- Hang Seng futures fell 0.4%
- S&P/ASX 200 futures rose 0.3%
Currencies
- The Bloomberg Dollar Spot Index fell 0.2%
- The euro was little changed at $1.1048
- The Japanese yen was little changed at 134.16 per dollar
- The offshore yuan was little changed at 6.9027 per dollar
Cryptocurrencies
- Bitcoin fell 0.2% to $27,399.62
- Ether fell 0.4% to $1,832.6
Bonds
- The yield on 10-year Treasuries declined eight basis points to 3.49%
- Australia’s 10-year yield declined one basis point to 3.45%
Commodities
- West Texas Intermediate crude fell 0.1% to $78.68 a barrel
- Spot gold was unchanged at $1,989.14 an ounce
This story was produced with the assistance of Bloomberg Automation.
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