Asian stocks slipped Wednesday as concern lingered over the economic impact of the coronavirus. The rally in Chinese shares continued.
Stocks traded lower in Australia, Japan and South Korea, and were little changed in Hong Kong. The Shanghai Composite Index climbed for a seventh session. Futures on the S&P 500 dipped after the gauge closed lower, with almost six shares falling for every one that gained. European contracts retreated. Traders brushed off reports that some top advisers in the Trump administration were weighing proposals to undermine Hong Kong’s dollar peg to the greenback.
Benchmark Treasury yields steadied and gold traded near the highest since 2011. The dollar was little changed. Brazil’s currency and stocks earlier slumped as President Jair Bolsonaro said he had tested positive for Covid-19.
Investors are pausing after a ferocious rally that fueled the S&P 500’s longest winning streak this year. Federal Reserve Bank of Atlanta President Raphael Bostic said the renewed spread of coronavirus may threaten the pace of the recovery as businesses and consumers put plans on hold.
“It’s not unusual for stocks to take a breather at this point,” Susan Schmidt, a portfolio manager at Aviva Investors, said on Bloomberg TV. “We could see ourselves in a bit of a trading range in the next couple of weeks,” before U.S. earnings season ramps up.
Elsewhere, oil fluctuated around $41 a barrel with an industry report signaling a surprise gain in U.S. crude stockpiles, while concerns linger about the threat to demand from rising coronavirus infections.
Here are some key events coming up:
- The EIA crude oil inventory report comes Wednesday.
- All eyes will be on the U.S. weekly jobless claims report on Thursday.
- Singapore holds its general election on Friday.
These are the main moves in markets:
Stocks
- Futures on the S&P 500 Index fell 0.3% as of 7:05 a.m. in London. The index fell 1.1% on Tuesday.
- Japan’s Topix index fell 0.9%.
- Hong Kong’s Hang Seng index climbed 0.1%.
- The Shanghai Composite rose 1.2%.
- Australia’s S&P/ASX 200 Index retreated 1.5%.
- Euro Stoxx 50 futures dipped 1.1%.
Currencies
- The yen was at 107.54 per dollar, little changed.
- The offshore yuan traded at 7.0221 per dollar.
- The euro bought $1.1270, little changed.
Bonds
- The yield on 10-year Treasuries was little changed at 0.64%.
- Australia’s 10-year yield remained at 0.88%.
Commodities
- West Texas Intermediate oil fell 0.5% to $40.41 a barrel.
- Gold was flat at $1,795 an ounce.
Source: Bloomberg