Asian stocks start mixed with US dollar edging higher
Stock indexes in Australia advanced, while Japanese shares swung and South Korean stocks were little changed after an uninspiring American trading session that saw the dollar stabilize while equities made little headway.
Declines at Alphabet Inc in after-hours trading weighed on Nasdaq 100 Index futures after sales at Google’s parent fell short of the most-optimistic estimates. The euro held on to losses triggered by data showing the region’s economy cooling.
Earnings season is ramping up ahead of the eagerly anticipated Fed policy decision tomorrow. Data yesterday in Europe cast doubt over the strength of the recovery and bond investors have cast their votes on a weak inflation outlook in the US.
Political turmoil in Washington remains front and centre after senior adviser Jared Kushner confirmed four contacts with Russians during his father-in-law’s presidential campaign and the transition. Donald Trump’s son and former Trump campaign Chairman Paul Manafort will go before Senate committees tomorrow.
Here are some key events coming up this week
The UK holds post-Brexit trade talks with the US in Washington. China posts industrial profits for last month, with early indicators pointing upward. Japanese June data also due this week may show sluggish CPI, even amid a tightening labour market and increased household spending.
The Fed is expected to make no change to policy tomorrow with investors and economists parsing the statement for clues on how officials plan to proceed in reducing their massive portfolio. The US economy probably gained traction in the second quarter as spending by American consumers picked up after a lull early this year.
The gross domestic product report follows the two-day Fed policy meeting. Results from Facebook Inc, Deutsche Bank AG, Nomura Holdings Inc., BNP Paribas SA and UBS Group AG are among those expected this week.
Here are the main moves in markets
The yen slipped 0.2 per cent to 111.28 per US dollar as of 9.18am. in Tokyo following five days of gains. The Bloomberg Dollar Spot Index rose 0.1 per cent after closing little changed yesterday. The euro was at US$1.1633 after dropping 0.2 per cent yesterday.
Futures on the S&P 500 Index were little changed after the underlying gauge slipped 0.1 per cent. Japan’s Topix index was little changed. Australia’s S&P/ASX 200 Index added 0.6 per cent with volume down about 30 per cent and South Korea’s Kospi index fell 0.1 per cent. — Bloomberg
Source: The Malay Mail Online