Asia Stocks Point to Mixed Start; Treasuries Rise: Markets Wrap

(Bloomberg) -- Asian stocks looked set for a mixed start to trading Wednesday following a volatile session for U.S. equities and as yields on Treasuries retreated from a seven-year peak.

Equity futures nudged higher in Japan and Hong Kong, while Australian shares pointed to small declines. The S&P 500 Index was dragged down by materials shares, after a profit warning in the sector, while technology shares rebounded from a three-day rout. The Bloomberg Dollar Spot Index hit lows on the day after U.S. President Donald Trump said the Federal Reserve is moving too fast with rate hikes.

The sell-off in Treasuries showed some signs of stabilizing as the yield on the 10-year benchmark edged down to 3.21 percent. Italian bonds recovered as Finance Minister Giovanni Tria appealed for calm amid a war of words between the government and European Union authorities over Rome’s spending program for the coming year.

Asian investors are assessing increasingly attractive valuations against a backdrop of deepening U.S.-China tensions and a surge in volatility for stock and bond markets. Bear markets for equities in China and Hong Kong contrast with American equities that remain near to all-time highs. China’s yuan remains weak after steps this week from authorities to spur lending in the economy. New lending and money-supply data, due as soon as today, will be closely watched as Beijing strives to support flagging growth.

Elsewhere, crude advanced as Hurricane Michael curtailed offshore oil production and the IEA issued a warning to the global market. Zinc and nickel climbed, while aluminum edged lower and gold stabilized after dropping the most in almost two months.

Terminal users can read more in our Markets Live blog.

Here are some key events coming up:

• The U.S. Treasury has $230 billion worth of debt auctions this week.
• The IMF and World Bank will hold meetings in Bali from Friday, where finance chiefs from around the world will gather.
• A closely watched gauge of U.S. consumer prices probably remained elevated in September and rose 2.3 percent from a year earlier, according to forecasts ahead of Thursday’s release.
• JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. kick off earnings season for U.S. banks on Friday.

These are the main moves in markets:

Stocks

• Futures on Japan’s Nikkei 225 rose 0.1 percent in most recent Singapore trading.
• Futures on the FTSE China A50 Index added 0.1 percent.
• Futures on Hong Kong’s Hang Seng Index advanced 0.2 percent.
• Futures on Australia’s S&P/ASX 200 Index slipped 0.1 percent.
• The S&P 500 declined 0.1 percent, while the Nasdaq 100 increased 0.3 percent.

Currencies

• The yen was steady at 112.99 per dollar.
• The offshore yuan was at 6.9170 per dollar.
• The Bloomberg Dollar Spot Index declined less than 0.1 percent.
• The euro bought $1.1492.

Bonds

• The yield on 10-year Treasuries fell two basis points to 3.21 percent.

Commodities

• The Bloomberg Commodity Index rose 0.4 percent.
• West Texas Intermediate crude added 0.5 percent to $74.67 a barrel.
• Gold was steady at $1,189.72 an ounce.

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