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Sydney - Stocks in Asia retreated at the start of a week packed with earnings results and a Federal Reserve interest-rate decision. Oil remained below $46 a barrel before an OPEC meeting, while the yen erased earlier gains.
The MSCI Asia Pacific Index fell for the first time in 11 days, with Australia equities leading declines. Hong Kong and China shares advanced. The dollar held losses after touching the lowest level since May 2016 on Friday.
Crude fluctuated in a narrow range after dropping 1.7% last week. Gold slipped and Treasuries were little changed.
Earnings from industry bellwethers from Amazon.com to GlaxoSmithKline and central bank policy discussions are providing the latest tests for the bull market that’s propelled the value of global equities to $78trn. Investors are also bracing for further surprises from Washington after President Donald Trump sought to impose order in his White House in the face of a widening Russia probe.
Senior adviser Jared Kushner will be interviewed by the Senate Intelligence Committee on Monday, and Donald Trump Jr. and former Trump campaign chairperson Paul Manafort will go before Senate committees on Wednesday.
Here are some key events coming up this week:
China posts industrial profits for last month, with early indicators pointing upward. Japanese June data also due this week may show sluggish CPI, even amid a tightening labour market and increased household spending. Fed chief Janet Yellen is in something of a bind: inflation remains muted and the job market robust.
As a result, the central bank is expected to make no change to policy on Wednesday with investors and economists parsing the statement for clues on how officials plan to proceed in reducing their massive portfolio.
Alphabet and Facebook results are on the calendar this week, as are global banks Deutsche Bank, Nomura, BNP Paribas SA and UBS. Pharma giants like Merck, Roche and Eli Lilly are also due along with McDonald’s, Caterpillar, GM, Ford, Boeing, Royal Dutch Shell, Total and Exxon.
These are the notable moves in markets:
Stocks
The MSCI Asia Pacific Index retreated 0.2% as of 08:25, after rallying over the past two weeks to the highest level in more than 10 years. Japan’s Topix index slid 0.5%, after dropping as much as 1% earlier in the day. Australia’s S&P/ASX 200 Index lost 0.6% and South Korea’s Kospi index was little changed.
The Shanghai Composite Index advanced 0.7% while Hong Kong’s Hang Seng was 0.4% higher. India’s Sensex climbed 0.6% to a record. Futures on the S&P 500 Index fell 0.1%. The underlying gauge closed flat on Thursday and Friday last week.
Currencies
The yen was flat at ¥111.14/$, after strengthening as much as 0.3% earlier. The currency gained for the past four sessions, closing Friday at the highest level since July 16. The euro was little changed at $1.1658. The New Zealand dollar weakened 0.3%.
The Bloomberg Dollar Spot Index was little changed, after dropping for two straight weeks. The Australian dollar rose 0.1%, trading above 79 US cents ahead of a speech by Reserve Bank of Australia Governor Philip Lowe on Wednesday. Guy Debelle, the central bank’s No. 2, last week appeared to tone down the RBA’s more hawkish tone recently.
Commodities
WTI crude was flat at $45.76 a barrel. Limiting oil output from Nigeria and Libya won’t be on the agenda when OPEC meets on Monday, with both African nations saying they’ll need to keep pumping at a higher level before they can join a global effort to stem a supply glut, according to two people familiar with the planned talks.
Gold slipped 0.2% to $1 252.70 an ounce, after climbing the past two weeks.
Bonds
The yield on the 10-year Treasury note was little changed at 2.24%. Australian benchmark yields fell two basis points to 2.68%.
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