Asian stocks traded mixed Thursday as investors weighed a signal from the Federal Reserve that more stimulus will be provided against a slew of earnings and the continued spread of the coronavirus. The dollar steadied.
Shares climbed in Hong Kong and Sydney with stocks in Seoul given a boost as earnings at Samsung Electronics Co. topped estimates. Gains fizzled in Tokyo and stocks fluctuated in Shanghai. Futures on the S&P 500 Index edged lower after the gauge extended its July rally, with the Fed keeping rates near zero and pledging to use all of its tools to support a recovery from the coronavirus pandemic. European contracts were little changed. The Australian dollar slipped after new coronavirus cases in the country surged to a record. Treasuries were steady, while gold edged down.
Investors also sifted through a batch of corporate earnings, with Qualcomm Inc. jumping in extended U.S. trading on a strong sales forecast. Technology giants Apple Inc., Amazon.com Inc. and Alphabet Inc. are due to report Thursday.
As the pandemic continues to rage, governments are having to double down on the $11 trillion dollars worth of stimulus and unprecedented central bank support unleashed since the crisis began. The Fed has kept rates pinned near zero since the outbreak’s onset in March and rolled out several emergency lending programs geared toward fostering liquid trading conditions in financial markets.
“The Fed’s large, looming presence and ability to act more if needed has provided a backstop for risk assets over the near term,” said Jason Pride, chief investment officer of private wealth at Glenmede. “The focus now shifts to the FOMC’s September meeting, when investors might expect more action,” he said, referring to the Federal Open Market Committee.
Elsewhere, oil was steady after the biggest decline in U.S. crude inventories this year signaled a bright spot in a market weakened by Covid-19.
Here are some key events coming up:
- Apple, Amazon.com, Alphabet, L’Oreal SA and Credit Suisse Group AG report earnings Thursday; results from Chevron Corp. and Caterpillar Inc. are due Friday.
- U.S. second-quarter GDP is expected on Thursday.
- China PMI data comes Friday.
These are some of the main moves in markets:
Stocks
- Futures on the S&P 500 dipped 0.2% as of 11:40 a.m. in Tokyo. The index climbed 1.2% Wednesday.
- Japan’s Topix index fell 0.2%.
- Hong Kong’s Hang Seng added 0.5%.
- Shanghai Composite rose 0.1%.
- South Korea’s Kospi index gained 0.2%.
- Australia’s S&P/ASX 200 Index rose 0.8%.
- Euro Stoxx 50 futures added 0.1%.
Currencies
- The euro bought $1.1775, down 0.1%.
- The yen was at 105.08 per dollar, 0.2% lower.
- The offshore yuan traded flat at 6.9963 per dollar.
- The Aussie fell 0.2% to 71.76 U.S. cents.
Bonds
- The yield on 10-year Treasuries remained at 0.57%.
- Australia’s 10-year yield slipped about one basis point to 0.87%.
Commodities
- West Texas Intermediate crude was flat at $41.29 a barrel.
- Gold was at $1,964 an ounce, down 0.3%.
Source: Bloomberg