Stocks Pare Losses, Yen Slips on China Trade Talks: Markets Wrap

(Bloomberg) — Asian stocks pared losses and Treasury yields ticked higher after China said its vice commerce minister will visit the U.S. for trade talks in late August. The dollar slipped along with the yen.

Equities from Tokyo to Sydney remained lower with technology and materials shares leading declines. Earlier, U.S. benchmarks fell led by the Nasdaq 100 Index. Crude oil rebounded after slipping below $65 a barrel following a report that American stockpiles rose the most since March 2017. The Australian dollar jumped as hopes on trade outweighed a decline in June employment. Emerging-market shares declined, with the intraday drop from their January high reaching 20 percent.

The Turkish lira fell in Asia after spiking as Turkey moved to deter short-selling of the currency while Qatar promised Wednesday to invest $15 billion in the Turkish economy to help the country avert a financial crisis.

Investor caution is returning even with the rally in American stocks just one week away from becoming the longest in history. Markets have been rocked over the past week as turmoil in Turkey weighed on sentiment across many emerging- and developed-nation assets.

Elsewhere, metals recovered somewhat after a hammering Wednesday. In Hong Kong, currency interventions continued after the currency fell to the weak end of its trading band.

Here are some key events coming up this week:

Earnings are still to come from companies including Maersk and Carlsberg.Brexit talks between the EU and the U.K. resume in Brussels Thursday.

These are the main moves in markets:

Stocks

Japan’s Topix index fell 0.8 percent as of 10:39 a.m. in Tokyo. Hong Kong’s Hang Seng Index slid 1 percent. Australia’s S&P/ASX 200 Index lost 0.3 percent.South Korea’s Kospi index fell 1.3 percent. Futures on the S&P 500 Index rose 0.3 percent. The S&P 500 dropped 0.8 percent and the Nasdaq 100 fell 1.2 percent. The MSCI Emerging Market Index fell 1.8 percent Wednesday, taking its slide since its January high to almost 20 percent.

Currencies

The yen fell 0.1 percent to 110.83 per dollar. The offshore yuan gained 0.3 percent to 6.9288 per dollar. The euro advanced 0.2 percent to $1.1368.The Bloomberg Dollar Spot Index fell 0.1 percent.

Bonds

The yield on 10-year Treasuries rose one basis point to 2.87 percent. Australian 10-year bond yields slid three basis points to 2.55 percent.

Commodities

West Texas Intermediate crude traded at $65.09 a barrel. LME copper was up 1 percent after sinking 4 percent. Gold fell 0.5 percent to $1,169.41 an ounce, having slid more than 3 percent this week.

–With assistance from Olivia Schaber.

To contact the reporters on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net; Andreea Papuc in Sydney at apapuc1@bloomberg.net

To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Cormac Mullen

SOURCE: Bloomberg.com

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