Asia: Stocks retreat, treasuries edge higher
[SYDNEY] Asian stocks slipped Thursday as investors digested mixed corporate earnings and worsening economic data. Treasuries pared an overnight decline.
Japanese shares retreated as traders in Tokyo returned from holidays. South Korean, Chinese and Hong Kong equities saw modest losses. S&P 500 futures nudged higher after the index closed lower Wednesday. The US dollar held gains, while the yen continued to trade near the highest since mid-March. Benchmark treasury yields ticked lower.
A Wednesday report showing US companies cut a record 20.2 million jobs in April showcased the economic damage of the coronavirus outbreak, before Friday's official payrolls report.
On the virus front, California reported its largest one-day jump in new cases, while Germany, the UK, Denmark and the Netherlands are planning additional steps to ease their restrictions.
As for earnings, signals from drug makers and online grocers have been encouraging, though insurers, banks and carmakers have added to the chorus of companies taking a heavy hit.
"We remain concerned about the potential for the pandemic to have lasting effects on growth," wrote Ron Temple, co-head of multi-asset and head of US equity at Lazard Asset Management.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
"Countries and companies are likely to exit the crisis with significantly higher debt, curtailing their ability to invest and innovate."
Elsewhere, oil swung around US$24 a barrel as investors weighed small signs of recovering demand against a huge glut that's testing global storage capacity limits.
KEY EVENTS COMING UP:
The Bank of England has a policy decision on Thursday.
Friday brings the US jobs report for April, expected to show a severe impact from the pandemic. The median forecast in a Bloomberg survey of economists calls for a 21 million plunge in payrolls.
STOCKS
Futures on the S&P 500 Index added 0.3 per cent as of 10:42am in Tokyo. The index fell 0.7 per cent on Wednesday.
The Topix Index dropped 0.5 per cent.
Australia's S&P/ASX 200 Index fell 0.4 per cent.
South Korea's Kospi dropped 0.2 per cent.
The Shanghai Composite fell 0.2 per cent.
Hong Kong's Hang Seng Index fell 0.7 per cent.
Euro Stoxx 50 futures dipped 0.3 per cent.
CURRENCIES
The yen slipped 0.1 per cent to 106.26 per US dollar.
The offshore yuan traded at 7.1244 per US dollar, up 0.1 per cent.
The euro was flat at US$1.0798, after dropping 0.4 per cent Wednesday.
BONDS
The yield on 10-year Treasuries dipped two basis points to around 0.7 per cent.
COMMODITIES
West Texas Intermediate crude rose 0.9 per cent to US$24.18 a barrel.
Gold rose 0.4 per cent to US$1,693 an ounce.
BLOOMBERG
Share with us your feedback on BT's products and services
