Asian stocks fell after US equities dropped and government bonds rallied against the backdrop of weaker-than-expected economic data that supported forecasts for recession.
(Bloomberg) — Asian stocks fell after US equities dropped and government bonds rallied against the backdrop of weaker-than-expected economic data that supported forecasts for recession.
Benchmarks declined in Japan, South Korea while Australian shares were little changed Thursday after the S&P 500 retreated 0.3% as selling pressure clustered in vulnerable corners of the market. The Nasdaq 100 dropped 1%, eroding a stellar first quarter in which the tech-heavy index rose by fifth.
Hong Kong and mainland China stocks will resume trading after the market was closed Wednesday for a holiday. The Golden Dragon index of US-listed Chinese shares fell 2.7%, suggesting a downdraft in prices when the market opens.
Haven assets retained their strength, with two-year and 10-year Treasuries little changed and yield near their lows for the year. Government bonds rose in Australia and New Zealand, with moves downward in yields confined to about five basis points.
An index of the dollar strengthen was little changed after gains Wednesday while the yen extended its advance. Gold was steady near a 13-month high.
The flight to safety reflected signs of a slowing US economy ahead of crucial data to be released later Thursday and on Friday.
The Institute for Supply Management’s index fell to a three-month low of 51.2, below consensus estimates. Private payrolls data from ADP also underwhelmed relative to expectations. The data precede Friday’s US payrolls report, which is forecast to show employers added about a quarter of a million jobs last month and the unemployment rate held at a historically low level.
“ADP private employment tally was much weaker than expected, and with other high-frequency labor market metrics, suggests deteriorating labor-market growth,” said Stan Shipley at Evercore ISI. “Whisper fears suggest a tepid jobs report on Friday.”
Key events this week:
- US initial jobless claims, Thursday
- St. Louis Fed President James Bullard speaks, Thursday
- US unemployment, nonfarm payrolls, Friday
- Good Friday. US stock markets closed, bond markets close for part of the day
Some of the main moves in markets:
Stocks
- S&P 500 futures fell 01.% as of 9:11 a.m. Tokyo time. The S&P 500 fell 0.3%
- Nasdaq 100 futures fell 0.2%. The Nasdaq 100 fell 1%
- Japan’s Topix fell 1%
- South Korea’s Kospi fell 0.6%
- Australia’s S&P/ASX 200 was little changed
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at $1.0903
- The Japanese yen rose 0.3% to 130.88 per dollar
- The offshore yuan was little changed at 6.8851 per dollar
- The Australian dollar was little changed at $0.6716
Cryptocurrencies
- Bitcoin fell 0.4% to $28,039
- Ether fell 0.4% to $1,898.75
Bonds
- The yield on 10-year Treasuries declined one basis point to 3.30%
- Australia’s 10-year yield declined five basis points to 3.22%
Commodities
- West Texas Intermediate crude fell 0.1% to $80.50 a barrel
- Spot gold was little changed
This story was produced with the assistance of Bloomberg Automation.
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