Stocks mixed as Kospi hits record, iron ore slides

Sydney - Australian stocks fell after metal prices declined, while South Korean shares rallied to a record high and Chinese equity markets fluctuated. The dollar held gains in the wake of the Federal Reserve’s policy meeting.

Iron-ore futures tumbled amid inventory concerns in industrial metals. With Japanese markets closed for a holiday, bonds in much of Asia tracked a retreat in Treasuries after the Fed reiterated plans for gradual interest-rate increases.

The Aussie dollar recouped some losses after the central bank reaffirmed its faith in the jobs market.

South Korean stocks built on gains as foreign investors snapped up shares, while the Hang Seng Index remained in the red even after heavyweight HSBC jumped on a surprise increase in profit.

Fed Chair Janet Yellen and at least five other central bank officials are scheduled to speak on Friday. The US fiscal outlook may also be in play, with the House expected to vote on Thursday on a new version of a health-care bill.

Majority Leader Kevin McCarthy says the Republican legislation will have the numbers to pass, but given the earlier struggles it’s far from a done deal.

A US report on Wednesday showed private payroll gains slowed in April, ahead of Friday’s key official employment report amid concern around the US economy’s tepid start to the year.

The next hurdle for investors to clear is Sunday’s French presidential election.

Here are key events and data releases due:

As Brexit talks begin, the European Union is expected to Thursday publish legislative proposals that would force London’s euro clearing operations to either accept EU oversight or relocate to the continent. Voters in France go to the polls Sunday for the second round of presidential elections.

Companies releasing earnings this week include HSBC Holdings, Time Warner, and Royal Dutch Shell.

Here are the main moves in markets:

Currencies

The yen was down 0.1% at 112.81 per dollar as of 2:50 in Tokyo, and the euro was up 0.1% at $1.0895. The Bloomberg Dollar Spot Index was up less than 0.1% after gaining 0.4% on Wednesday.

The Aussie was down 0.1% at 74.14 US cents, having on Wednesday slumped 1.5%, the most since November.  

Bonds

The yield on 10-year Australian government bonds rose 5 basis points to 2.64%. Yields on 10-year Treasuries rose 4 basis points to 2.32% on Wednesday. With Japan out for a holiday, Treasuries weren’t trading in Asia.

Stocks

Futures on the S&P 500 Index rose 0.1% after the underlying gauge slid 0.1% on Wednesday. The Stoxx Europe 600 Index closed little changed. Australia’s S&P/ASX 200 Index lost 0.3%.  

The Hang Seng Index fell 0.4% and the Hang Seng China Enterprises Index dropped 1%, the most in a week. The Shanghai Composite Index was little changed after reversing a loss of as much as 0.8%.

South Korea’s Kospi index rose 0.7%, India’s Sensex jumped 0.5%.

Commodities

A measure of iron-ore futures fell 6.9% on the Dalian Commodity Exchange. Copper futures were up 0.2% after sliding 3.7% on Wednesday, the worst tumble since 2015.  

Nickel futures rose 0.1% following a 3.3% drop the previous day. Lead was up 0.3%, and aluminium was 0.1% lower.

The London Metal Exchange LMEX Metals Index slumped 2.5% on Wednesday.  Oil declined 0.3% to $47.68 a barrel.