Asian shares tread water amid mixed growth signals

A man walks past an electronic board showing the Nikkei stock index outside a brokerage in Tokyo March 25, 2019. — Reuters pic
A man walks past an electronic board showing the Nikkei stock index outside a brokerage in Tokyo March 25, 2019. — Reuters pic

SHANGHAI, April 12 — Asian shares were flat and US Treasury yields pulled back today as investor caution prevailed ahead of the release of first-quarter corporate earnings, although stronger US economic data helped offset some concerns about .

Early in the trading day, MSCI’s broadest index of Asia- shares outside Japan was barely higher, up 0.03 per cent.

Higher iron ore prices helped Australian shares outpace regional markets, pushing Australia’s S&P/ASX 200 index up 0.7 per cent.

Japan’s Nikkei stock index gained 0.1 per cent.

The weak gains in Asian markets followed a choppy session on Wall Street that left major indexes treading water, hemmed in by anxiety ahead of corporate earnings and worries about a slowdown, which capped gains from upbeat US economic data.

The Dow Jones Industrial Average fell 0.05 per cent to 26,143.05, the S&P 500 closed flat at 2,888.32 and the Nasdaq Composite dropped 0.21 per cent to 7,947.36.

Tempering expectations for a sharp slowdown in as data that showed the number of Americans filing applications for unemployment benefits dropped to a 49-1/2-year low last week

Comments from US Federal Reserve Vice Chairman Richard Clarida that the US economy is in a “good place” but reemphasising the Fed’s patience on , also helped to reassure investors.

“One of the big take aways from the past few days has been the broad decline in volatility across markets,” National Australia Bank (NAB) analysts said in a morning note. NAB attributed the muted reaction to recent events to dovish policy shifts by central banks, signs that ’s stimulus measures are having an effect, continued US- trade talks and the Brexit delay.

International Monetary Fund Managing Director Christine Lagarde said yesterday that the six-month delay of Britain’s exit from the European Union avoids the “terrible outcome” of a “no-deal” Brexit, but does nothing to lift uncertainty over the final outcome.

Underscoring ongoing threats to the health of the global economy, IMF Deputy Managing Director Mitsuhiro Furusawa warned that a bigger-than-expected slowdown in China’s economy remains a key risk to global growth.

US Treasury yields inched lower amid the cautious retreat in shares, after earlier rising on the US jobless claims data, stronger producer prices and a weak 30-year auction.

This morning, the yield on benchmark 10-year Treasury notes fell to 2.4952 percent compared with its US close of 2.504 per cent yesterday, while the two-year yield , touched 2.354 per cent compared with a US close of 2.356 per cent.

In currency markets, the was up less than 0.1 per cent against the yen at 111.73, while the euro gained 0.27 per cent on the day to buy US$1.1280.

The US dollar index, which tracks the greenback against a basket of six major rivals, was down 0.1 per cent at 97.047.

US crude ticked up 0.27 per cent at US$63.75 (RM261.57) a barrel, while Brent crude was up 0.2 per cent at US$70.97 per barrel.

Gold was slightly higher, having fallen more than 1 per cent yesterday to break below the key US$1,300 level following solid US data. Spot gold was trading at US$1,293.30 per ounce. — Reuters

Source: The Malay Mail Online

Leave a Reply

Your email address will not be published. Required fields are marked as *

Time limit is exhausted. Please reload CAPTCHA.