Asian stocks weakened after US shares fell and cryptocurrencies arrested a sharp decline that sapped risk appetite ahead of crucial inflation data due Thursday.
(Bloomberg) — Asian stocks weakened after US shares fell and cryptocurrencies arrested a sharp decline that sapped risk appetite ahead of crucial inflation data due Thursday.
Shares in Japan, China and Australia fell. US equity futures inched higher after the S&P 500 slumped Wednesday to end a three-day advance. The dollar treaded water after a Wednesday rally and bond yields fell in Australia and New Zealand, following Treasuries.
Bitcoin climbed above $16,000 after tumbling by the biggest margin since March 2020 Wednesday as Binance scrapped plans to acquire embattled exchange FTX.com, which may face bankruptcy. The action weighed on crypto-linked companies across the region after similar declines in the US. Japan-listed Monex Group and Remixpoint dropped and South Korea’s Hanwha Investment fell.
US voters delivered a mixed verdict in midterm elections. Republicans headed for control of the House by smaller margins than forecast while the race for Senate continued.
A divided congress “would likely block further bold fiscal moves,” Mark Haefele, chief investment officer at UBS Global Wealth Management, said in a note. For markets, however, “Federal Reserve policy, rather than fiscal policy, will remain the main driver.”
October inflation data will offer clues on the path of Fed tightening. JPMorgan Chase & Co. analysts said a hot print could send US stocks 6% lower in Thursday trade.
Oil traded flat after its worst day in nearly a month as US stockpiles grew and Covid outbreaks in China threatened growth.
Key events this week:
- US CPI, US initial jobless claims, Thursday
- Fed officials Lorie Logan, Esther George, Loretta Mester speak at events, Thursday
- US University of Michigan consumer sentiment, Friday
Stocks
- Futures on the S&P 500 rose 0.3% as of 2:18 p.m. Tokyo time. The S&P 500 fell 2.1%
- Nasdaq 100 futures climbed 0.5%. The Nasdaq 100 fell 2.4%
- Japan’s Topix Index fell 0.6%
- Australia’s S&P/ASX 200 Index fell 0.5%
- The Hang Seng Index fell 1.8%
- The Shanghai Composite Index fell 0.6%
- Euro Stoxx 50 futures fell 0.7%
Currencies
- The Bloomberg Dollar Spot Index fell 0.2%
- The euro rose 0.2% to $1.0033
- The Japanese yen rose 0.2% to 146.13 per dollar
- The offshore yuan rose 0.4% to 7.2483 per dollar
Cryptocurrencies
- Bitcoin rose 5.2% to $16,553.76
- Ether rose 7% to $1,182.88
Bonds
- The yield on 10-year Treasuries declined three basis points to 4.07%
- Australia’s 10-year yield declined 15 basis points to 3.71%
Commodities
- West Texas Intermediate crude was little changed
- Spot gold rose 0.2% to $1,710.74 an ounce
–With assistance from Stephen Kirkland.
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