Sydney - Asia-Pacific stocks advanced as the global selloff in technology shares showed signs of easing, while the pound held losses as Theresa May fought to survive the fallout from the British general election.
Equities from Australia to Hong Kong climbed. Technology shares in the MSCI Asia Pacific Index were little changed, after the Nasdaq 100 Index capped its biggest two-day decline since September.
Crude oil traded above $46 a barrel following its first back-to-back gain in three weeks. Treasuries, gold and the dollar were little changed before this week’s Federal Reserve policy decision.
The sudden slide in tech stocks, whose gains had helped send global equities to repeated record levels this year, blindsided many investors after markets largely brushed aside last week’s trio of high-risk events.
The question now is whether the drops represent merely a pause or a more fundamental crack in the US stock bull market.
The Nasdaq 100 fell as much as 1.9% before paring losses into the close.
Samsung Electronics was little changed after leading declines in Asia during Monday’s rout. Tencent Holdings, which tumbled 2.5% in the previous session, and Taiwan Semiconductor Manufacturing, which dropped the most since December, both advanced more than 0.4% on Tuesday.
The Asian markets have moved on from the technology rout, according to Lim Dong-yul, a senior trader at CMC Markets in Singapore. Asian technology companies are more hardware-focused and have other businesses other than technology manufacturing that help to support their prices more than software-based companies in the US, he said.
Despite the tech selloff and political uncertainties in Washington and London, global stocks are still trading less than 0.8% from an all-time high.
In the UK, May apologized to her own lawmakers for the election debacle as she sought to secure the votes needed to prop up her minority government.
The Fed is this week set to lift rates, leading a pack of central banks that are moving in the direction of removing ultra-accommodative policy.
Here’s what investors will be watching:
Investors may get more drama from Washington as Attorney General Jeff Sessions will testify publicly on Tuesday before the Senate Intelligence Committee. He will likely face pressure to explain his role in the firing of James Comey and contacts that he and associates of President Donald Trump had with Russian officials.
Fed policy makers are forecast to raise their benchmark interest rate for the second time this year on Wednesday.
Central banks in Japan, Switzerland and Britain are also scheduled to weigh in with policy decisions this week.
Here are the main moves in markets:
Stocks
Japan’s Topix rose 0.2% while the Nikkei 225 Stock Average fell less than 0.1% as of 1:50 in Tokyo. Australia’s benchmark gauge climbed 1.2%, with energy and financial shares leading the way as investors returned from a holiday.
South Korea’s Kospi added 0.5%. Hong Kong’s Hang Seng increased 0.5% and the Shanghai Composite Index advanced 0.4%. Futures on the S&P 500 Index rose 0.1%.
The Nasdaq 100 fell 0.6% on Monday, adding to its 2.4% rout on Friday. Apple fell 2.4% while Microsoft slid 0.8%. Losses in the S&P 500 were muted, with the benchmark gauge down 0.1%.
The Stoxx Europe 600 Index slid 1%, with ASML Holding dropping 3.9%.
Currencies
The yen was little changed at 109.99 per dollar, after Monday’s 0.3% gain. The Bloomberg Dollar Spot Index was flat. The New Zealand dollar rose 0.4% and the Canadian dollar climbed 0.2%. The South Korean won slipped 0.1%.
The pound was steady at $1.2657, after sliding as much as 0.8% on Monday; it hit $1.2636 on Friday, the lowest since May 18. The euro retreated 0.1% to $1.1193.
Bonds
The yield on 10-year Treasuries was flat at 2.21%, after rising for four straight sessions. Australian benchmark yields fell less than one basis point to 2.39%.
Commodities
West Texas crude futures rose 0.4% to $46.25, gaining for a third day before US government data forecast to show crude stockpiles resumed declines after an unexpected rise.
Gold was little changed at $1 266.36, after four straight days of losses as investors anticipate the Fed will raise rates Wednesday.
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