Business Maverick

Business Maverick

Stocks Mixed on Low Volume, U.S. Futures Edge Up: Markets Wrap

Pedestrians wearing protective masks are reflected in an electronic stock board outside a securities firm in Tokyo, Japan, on Friday, March 13, 2020. Japanese stocks tumbled, capping their worst week since 2008, as investors speculated over the scale and impact of government and central bank actions to counter the coronavirus. Photographer: Kiyoshi Ota/Bloomberg

Stocks in Asia kicked off the week in mixed fashion as low trading volumes once again suggested a lack of conviction and as investors mulled the impact of coronavirus outbreaks in countries from the U.S. to Australia.

S&P 500 Index contracts reversed a slide of as much as 1% to edge higher. Hong Kong shares were lower, while losses in Korea and Japan were pared back and those main indexes traded flat. Australia reversed a drop and Shanghai shares ticked higher. California reported record new cases and Florida infections jumped more than the weekly average. The Australian dollar erased earlier losses seen in the wake of one Australian state tightening restrictions due to fresh cases. Treasuries were little changed.
Analysts have been lifting target prices for Asia stocks since early June

Markets remain vulnerable as governments gradually ease coronavirus lockdowns and travel restrictions to revive economic growth while attempting to control the spread of Covid-19. Meanwhile, China over the weekend released details of a proposed national security law that would give the mainland the right to directly prosecute Hong Kong residents for still vaguely defined offenses.

“Shares remain technically overbought and vulnerable to a further correction or period of consolidation, but we continue to see it as a pause in a rising trend,” said Shane Oliver, a global investment strategist at AMP Capital Investors Ltd. “Fear about a second wave of coronavirus cases continues.”

Elsewhere, China’s suspension of imports from a Tyson Foods Inc. plant stoked concerns over the broader implications for U.S. and global meat exports during the pandemic.

Here are some key events coming up:

  • MSCI Inc. on Tuesday announces its market classification review for 2020.
  • The IMF will release new 2020 growth projections on Wednesday.
  • U.S. jobless claims, durable goods and GDP data are due Thursday.
  • Policy decisions are expected from central banks in Turkey and the Philippines Thursday.
  • rebalance of Russell indexes is due on Friday.
Stocks
  • Futures on the S&P 500 rose 0.4% as of 11:38 a.m. in Tokyo. The index fell 0.6% on Friday.
  • Japan’s Topix index was little changed.
  • Hong Kong’s Hang Seng fell 0.2%.
  • South Korea’s Kospi dropped 0.1%.
  • Australia’s S&P/ASX 200 Index rose 0.3%.
  • Shanghai Composite Index rose 0.3%.
  • Euro Stoxx 50 futures declined 1%.

Currencies

  • The yen was flat at 106.90 per dollar.
  • The offshore yuan was steady at 7.0718 per dollar.
  • The Aussie rose 0.3% to 68.52 U.S. cents.
  • The euro bought $1.1195.

Bonds

  • The yield on 10-year Treasuries was at 0.69%.
  • Australia’s 10-year yield remained at 0.86%.

Commodities

  • West Texas Intermediate crude oil gained 0.5% to $39.94 a barrel.
  • Gold climbed 0.6% to $1,753.62 an ounce.
Gallery

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