Asian stocks began Wednesday in mixed fashion, despite another record high on Wall Street, as investors mulled the pace of the recent equity rally and expectations for loose monetary policy. The dollar retained losses.
Shares fluctuated in Japan and South Korea, and dipped in Australia. S&P 500 futures were steady after both the benchmark and the Nasdaq Composite notched fresh highs, helped by gains in Facebook Inc. Crude oil traded near the highest in five months as Hurricane Laura bore down on key refining facilities on the U.S. Gulf Coast. The yen dipped and gold was little changed. Treasuries edged lower.
As global economies reopen, investors remain wary about fresh outbreaks of the virus and are focused on progress on a vaccine. A summer infection spike in U.S. Sun Belt states showed more signs of easing, while cases continued to grow in Spain and Germany. Traders await Federal Reserve Chair Jerome Powell’s scheduled speech on Thursday about the central banks monetary policy framework review, which has focused on a new inflation strategy.
If you think about what’s been driving markets, its really been the pace of recovery and primarily multiples have expanded due to hyper-loose monetary policy, Troy Gayeski, co-chief investment officer of SkyBridge Capital, told Bloomberg TV.
In New Zealand, equities were disrupted for a second day after a cyber attack halted activity Tuesday.
These are the main moves in markets:
Stocks S&P 500 futures were little changed as of 9:01 a.m. in Tokyo. The gauge gained 0.4% on Tuesday.
Japan’s Topix index slipped 0.3%. South Korea’s Kospi index dropped 0.2%. Australia’s S&P/ASX 200 Index lost 0.2%.
Currencies
The Bloomberg Dollar Spot Index was steady after slipping 0.3%. The yen was at 106.40 per dollar. The offshore yuan traded at 6.9044 per dollar. The euro bought $1.1834. Bonds The yield on 10-year Treasuries remained at 0.68%. Australia’s 10-year yield rose three basis points to 0.92%.
Commodities
West Texas Intermediate crude rose 0.1% to $43.40 a barrel. Gold was at $1,929.52 an ounce, up 0.1%.