(Bloomberg) — Stocks in Asia are poised to fall after US benchmarks slipped Tuesday as fears of a banking crisis resurfaced. Losses may be mitigated after robust gains from Microsoft Corp and Alphabet Inc. buoyed US futures.
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Contracts for stock indexes in Japan, Australia and Hong Kong all declined after the S&P 500 fell 1.6% and the Nasdaq 100 fell 1.9% on Tuesday.
US futures rose after Microsoft Corp. and Alphabet Inc. came in better than expected after markets in New York closed, prompting an after-hours rally in their shares.
Shares in First Republic Bank fell 49% after the lender’s disappointing earnings on Monday, reigniting fears over the health of the US banking sector. The bank is considering an asset sale of up to $100 billion in long-term mortgages and securities as part of a bailout plan, Bloomberg reported on Tuesday.
“We expect volatility to continue and that’s because interest rates will remain high,” Ellen Hazen, chief market strategist and senior portfolio manager at FL Putnam Investment Management Co., told Bloomberg Television and after Covid – Microsoft, Alphabet, but also Visa – with strong, dominant market positions. These companies will be fine.”
Australian bonds edged higher and the rand strengthened ahead of Wednesday’s inflation data. New Zealand’s debt also rose after a rally in Treasuries pushed US yields lower along the curve on Tuesday. The benchmark 10-year Treasury yield fell 9 basis points to 3.40%, while the politically sensitive 2-year government bond yield fell 13 basis points.
Bloomberg’s dollar index was little changed after Tuesday’s rally as investors bought the US currency as a haven.
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Elsewhere, revenue was mixed. UBS Group AG shares fell after earnings fell short of expectations, while Spotify Technology SA rose 5% after a sharp rise in subscribers. McDonald’s Corp. was little changed after beating sales estimates, and Danaher Corp. fell 8.8% after lowering full-year guidance.
“A soft landing in the economy this year is a pipe dream,” wrote Matt Maley, chief market strategist at Miller Tabak + Co, in a note. “When was the last time a major credit crunch didn’t lead to a recession? The answer: never.”
Oil stabilized after falling 2.2% on Tuesday, gold was little changed and iron ore extended its losing streak to a fifth day.
Important events this week:
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CPI Australia, Wednesday
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Sweden rate decision, Wednesday
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Eurozone Economy, Consumer Confidence, Thursday
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US Initial Jobless Claims, GDP, Thursday
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Bank of Japan meets Friday on interest rates
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Eurozone GDP, Friday
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US personal income, Friday
Result Highlights:
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Wednesday: Boeing, Meta, Hilton
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Thursday: Amazon, American Airlines, Intel, Mastercard, Southwest Airlines, Hershey, Honeywell, Barclays
Some of the key movements in the markets:
Shares
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S&P 500 futures were up 0.4% as of 8:19 a.m. Tokyo time. The S&P 500 fell 1.6%
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Nasdaq 100 futures rose 1.2%. The Nasdaq 100 fell 1.9%
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Nikkei 225 futures down 0.7%
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Hang Seng futures fell 0.9%
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S&P/ASX 200 futures down 0.5%
currencies
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The Bloomberg Dollar Spot Index was little changed
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The euro was little changed at $1.0979
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The Japanese yen was little changed at 133.71 per dollar
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The offshore yuan was little changed at 6.9403 per dollar
cryptocurrencies
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Bitcoin rose 0.9% to $28,244.03
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Ether was up 0.3% to $1,866.48
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raw materials
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West Texas Intermediate crude was up 0.3% to $77.30 a barrel
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Spot gold rose 0.1% to $1,999.85 an ounce
This story was created with the support of Bloomberg Automation.
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