Asian Stocks Drift After U.S. Losses; Gold Steady: Markets Wrap

LISTEN TO ARTICLE

3:02

SHARE THIS ARTICLE

Share

Tweet

Post

Email

Photographer: Toru Hanai/Bloomberg

Photographer: Toru Hanai/Bloomberg

Asian stocks drifted Wednesday after their U.S. peers retreated on doubts over the timing of a spending package from Washington. Gold steadied after tumbling the most in seven years.

Investors are considering the possibility that a stalemate in Washington could significantly delay the U.S. virus rescue package, weighing on the nascent recovery. Meanwhile, the massive rally in gold that sent the haven metal to record highs above $2,000 an ounce reversed course Tuesday, as a rise in bond yields cut into the negative real rates that had supported the metal.

“There‘s some profit-taking going on, they’re looking to rotate into some of the stuff that hasnt performed as well,” said Keith Gangl, portfolio manager for Gradient Investments.

Meanwhile, Joe Biden chose Senator Kamala Harris as his running mate, betting that her ties to the African-American community and self-branding as a “progressive prosecutor” will help propel him to the White House. On the virus front, California reported a sharp jump in cases.

Here are some key events coming up:

• Earnings include E.ON, Deutsche Telekom, Carlsberg, Tencent and JD.com.

• New Zealands central-bank policy decision is due on Wednesday.

• U.S. CPI for July is scheduled for Wednesday.

• China releases a slew of data for July on Friday, including industrial production and retail sales.

{24}

Jack Manley, JPMorgan Asset Management global market strategist, talks about prospects for an economic recovery.

{24}

{26}

Source: Bloomberg

{26}

These are the main moves in markets:

Stocks

• Futures on the S&P 500 rose 0.3% as of 9:06 a.m. in Tokyo. The index fell 0.8% on Tuesday.

• Japans Topix Index rose 0.6%.

• Koreas Kospi Index rose 0.1%.

• Australias S&P/ASX 200 Index advanced 0.1%.

• New Zealands S&P/NZX 50 fell 1.8%.

Currencies

• The yen was little changed at 106.52 per dollar.

• The offshore yuan was flat at 6.9446 per dollar.

  {38}

• The euro was little changed at $1.1741.

  {38}

• The Bloomberg Dollar Spot Index was little changed.

  {40}

Bonds

{40}

• The yield on 10-year Treasuries fell one basis point to 0.63%. It rose more than six basis points Tuesday.

Commodities

• Gold was at $1,918 an ounce, up 0.3%.

• West Texas Intermediate crude was 0.2% higher at $41.69 a barrel.

— With assistance by Claire Ballentine, Katherine Greifeld, and Joanna Ossinger