Publications
Partners
Sydney - Asian technology stocks climbed with US equity-index futures after results from Apple buoyed sentiment in the sector.
Suppliers to Apple such as Murata Manufacturing and AAC Technologies Holdings led gains on an index that tracks tech companies in the MXAP Asia Pacific Index as Nasdaq futures advanced after Apple projected revenue in the current quarter that topped analysts’ estimates.
Equities rose in Tokyo as automakers got a boost from better-than-expected earnings from Honda.
The kiwi sank after hiring declined unexpectedly in New Zealand. A drop in the Bloomberg Commodity Index weighed on raw-material producers in Asia after a stellar run.
Company earnings are supporting the case for a firm global economy that’s propelling equity gauges to new highs. Still, with many stock valuations well above average, monetary policy in the US tightening and Donald Trump’s administration mired in controversy, there remains a degree of caution in markets.
There are also mixed signals on the US economy. Consumer spending cooled in June and a drop in dividend payments caused incomes to stagnate, signalling the world’s biggest economy may get less help from households this quarter, Commerce Department figures showed on Tuesday.
Over in India, the central bank is expected to ease policy and announce steps to absorb excess bank liquidity after consumer prices slowed sharply. Policy makers will probably cut the benchmark rate by 25 basis points to 6%, economists said.
Meanwhile, bets on Venezuelan default are climbing and the implied probability of a missed payment over the next year has risen to 64%, according to data compiled by Bloomberg.
The government’s $3bn of bonds due in 2022 fell to a 15-month low and traded at 41 US cents on Tuesday after President Nicolas Maduro moved closer to imposing authoritarian rule in the country.
Here are some key upcoming events:
Brazil’s Congress votes on Wednesday on whether to put President Michel Temer on trial. Bank of England Governor Mark Carney may signal a more hawkish tone at its quarterly Inflation Report on Thursday.
The central bank will likely keep rates on hold. US jobs data on Friday will probably show employers added about 180 000 workers in July.
Here are the main moves in markets:
Stocks
Japan’s Topix index gained 0.4%. Honda jumped following the company’s higher profit forecast. Australia’s S&P/ASX 200 Index fell 0.6% and South Korea’s Kospi index added 0.3%.
Hong Kong’s Hang Seng Index was 0.7% higher, while the Shanghai Composite Index gained 0.3%.
Nasdaq 100 futures climbed 1% as of 2:30pm in Tokyo. Apple shares rose more than 6% in after-hours trading, putting the stock on course for a record high when regular trading starts.
S&P 500 e-mini futures were up 0.1%. The MSCI Asia Pacific Index was little changed. Raw-material producers such as BHP Billiton that had been buoyed by the recent rally in commodities declined as the gain in resources stalled.
Currencies
The kiwi slide 0.5% to 74.30 US cents. Read more on New Zealand’s jobs report here. The euro bought $1.1827 after slipping 0.3% on Tuesday. The Bloomberg Dollar Spot Index added 0.1%. It rose 0.2% on Tuesday.
Bonds
The yield on 10-year Treasuries was at 2.26% after falling four basis points on Tuesday. 10-year Australian government notes saw yields drop two basis points to 2.70%.
Commodities
West Texas Intermediate crude retreated from above $50, falling 0.9% to $48.70 a barrel. The contract fell 2% on Tuesday, the first decline in more than a week, after an industry report was said to show US crude inventories unexpectedly jumped.
The Bloomberg Commodity Index fell 0.2%, extending a 1% decline on Tuesday.
SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.
Read Fin24's top stories trending on Twitter: Fin24’s top stories
