Business Maverick

Business Maverick

Stocks Mixed in Asia After U.S.-China Trade-Deal: Markets Wrap

Chinese one-hundred yuan banknotes are arranged for a photograph in Hong Kong, China on Monday April 15, 2019. Photographer: Paul Yeung/Bloomberg

Stocks in Asia were mixed Thursday in wake of the signing of the U.S.-China trade deal, expectations for which had driven global equities to record highs and propelled a recovery in the yuan.

 

Shares in Japan were largely flat, while Australian equities were modestly higher along with those in Hong Kong. The Shanghai gauge slipped. U.S. futures were little changed after the S&P 500 Index Wednesday notched a fresh all-time high. Treasuries held gains, with 10-year yields below 1.8%, and West Texas Intermediate hovered around $58 a barrel.

Dow Average closes above 29,000 for first time

With the deal between the world’s two largest economies now behind, investors may be casting around for fresh catalysts. Meantime, traders may sift through details in the agreement. Soybeans slumped overnight after China signaled purchases would be based on demand, rather than a pre-set amount.

“Given the amount of speculation by the markets and commentary by officials ahead of Wednesday’s signing, it is unsurprising markets have not rallied too strongly upon final signing,” said Hannah Anderson, a strategist at JPMorgan Asset Management. “Markets will likely continue to price in an elevated risk premium, which could be a source of volatility throughout 2020.”

Elsewhere, Russia’s ruble fluctuated. President Vladimir Putin replaced his long-serving prime minister and called for sweeping constitutional changes, fueling speculation that the Russian leader is moving to extend his grip on power beyond the end of his term in 2024.

Here are some events to watch for this week:

  • Earnings season has begun in the U.S., with reports from Morgan Stanley and Bank of New York Mellon Corp. due Thursday
  • China GDP, along with key monthly data for December, come on Friday.
  • A final reading on the euro-zone’s December inflation is also due on Friday.

There are some of the main moves in markets:

Stocks

  • Futures on the S&P 500 Index were little changed as of 12:04 p.m. in Tokyo. The underlying gauge rose 0.2% on Wednesday.
  • Japan’s Topix index dipped 0.1%.
  • South Korea’s Kospi index added 0.2%.
  • Australia’s S&P/ASX 200 Index advanced 0.6%.
  • Shanghai Composite index dipped 0.2%.
  • Hang Seng index added 0.4%.

Currencies

  • The yen was at 109.93 per dollar, little changed.
  • The offshore yuan was steady at 6.8874 per dollar.
  • The Bloomberg Dollar Spot Index was flat.
  • The euro bought $1.1152, little changed.

Bonds

  • The yield on 10-year Treasuries was at 1.79%.
  • Australia’s 10-year yield fell about three basis points to 1.18%.

Commodities

  • West Texas Intermediate crude oil added 0.6% to $58.16 a barrel.
  • Gold was flat at $1,557.02 an ounce.
Gallery

Please peer review 3 community comments before your comment can be posted

X

This article is free to read.

Sign up for free or sign in to continue reading.

Unlike our competitors, we don’t force you to pay to read the news but we do need your email address to make your experience better.


Nearly there! Create a password to finish signing up with us:

Please enter your password or get a sign in link if you’ve forgotten

Open Sesame! Thanks for signing up.

We would like our readers to start paying for Daily Maverick...

…but we are not going to force you to. Over 10 million users come to us each month for the news. We have not put it behind a paywall because the truth should not be a luxury.

Instead we ask our readers who can afford to contribute, even a small amount each month, to do so.

If you appreciate it and want to see us keep going then please consider contributing whatever you can.

Support Daily Maverick→
Payment options

Daily Maverick Elections Toolbox

Feeling powerless in politics?

Equip yourself with the tools you need for an informed decision this election. Get the Elections Toolbox with shareable party manifesto guide.