Asian stock markets anticipating new economic data and indications, Asian equities drop. To determine a direction and likelihoods, awaiting central bank remarks
Asian stocks are down across the board
Early on Tuesday, the U.S. dollar and stocks both fell. Investors weighed company earnings and the potential for growth in the economy in an active week.
By 0220 GMT, the largest MSCI index of equities outside of Japan for the Asia-Pacific region was down 0.7%. The benchmark in Hong Kong fell 1.2%, while mainland equities fell 0.7%
A weak GDP print sent South Korea’s KOSPI tumbling, and losses in American technology stocks spread to regional markets. Amid worries about a downturn in earnings. The South Korean economy narrowly avoided a recession in the Q1 of 2023, according to data. And the KOSPI had one of its worst performances among Asian bourses for the day, falling 1.6%.
Due to a holiday, markets in Australia and New Zealand are closed.
In the Asian stock markets. The benchmark Nikkei average in Japan increased by 0.5%. The S&P 500 e-mini futures for U.S. stocks decreased by 0.2 percent. Ueda’s remarks come ahead of a BOJ address on Friday. In which the bank is anticipated to keep its actions for controlling the yield curve for growth.
As investors anticipated results from businesses like Microsoft (NASDAQ: MSFT), the Nasdaq finished down on Monday, lagging behind the S&P 500 as well as the Dow. Tesla’s (NASDAQ: TSLA) shares also declined on worries about the company’s expenditure plans. A lot of ambiguity exists. People are still unsure of how the latest developments have affected bank lending. Along with when inflation will reach its long-term maximum.
For hints on the growth traction or when a recession in the U.S. economy might start. Investors are awaiting corporate earnings and an array of economic indicators from the U.S., Europe, and China. The nearing debt ceiling time limit caused people in the U.S. treasury market to search for safer places to park their money. Which resulted in a decline in yields.
Benchmark 10-year notes rose on Monday to 3.5034%, but they were down to 3.4787% by 0220 GMT today.
The US dollar, Gold, and Crude oil in perspective
US dollar
Since the dollar index had been down 0.1%, buyers holding other currencies found gold to be more alluring. This week’s additional U.S. economic reports will be closely tracked by traders in order to predict the Fed’s next course of action.
Gold
Given that rising interest rates increase the opportunity cost of holding non-yielding assets like bullion. This situation is positive for gold. The Fed’s change of direction is likely to be influenced by worsening economic indicators/ Which will increase gold’s attractiveness as a safe haven.
By 21:43 ET (01:43 GMT), spot gold increased 0.3% to $1,995.57 an ounce, while gold futures increased 0.3% to $2,006.35 per ounce. Both items were on track to post gains for a third consecutive day.
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Crude oil
Investors set the possibility of strong holiday travel in China, which could increase energy demand. Against the possibility of rising interest rates somewhere else, which could slow economic growth. Oil prices remained stable.
U.S. West Texas Intermediate crude increased 9 cents to $78.85 per barrel. While Brent crude increased 5 cents to $82.78 a barrel.
