Sydney - Japanese and Hong Kong
equities led Asian declines, following a slide in US stocks, while oil prices
firmed after falling Wednesday for the first time in a week.
The MSCI Asia-Pacific Index slid
after the Dow Jones Industrial Average weakened and failed to reach the
much-heralded 20 000 mark amid thinner volumes in the lead up to year-end,
although Australian and South Korean equities rose. The Bloomberg Dollar Spot
Index remained lower after a 0.1 percent drop Wednesday, with the New Zealand
dollar stronger following data that indicated faster-than-expected economic
growth and the Swedish krona extended gains. Crude oil held above $52.50 a
barrel after a report showing US stockpiles increased drove it down Wednesday.
With volumes thinning and swings in
global equities muted, momentum has stalled after the prospect of increased US
government spending helped spur stocks to repeated highs over recent weeks. The
Treasuries market has steadied following a selloff that took the 10-year yield
to the highest since 2014, with the rate holding in a 7 basis point range this
week.
“Moderate losses on Wall Street,
underpinned by the fall in oil prices, are providing little inspiration for
Asian markets today,” said Jingyi Pan, a strategist at IG Asia in
Singapore. “Thin volumes are also providing little momentum for trade into the
end of the year.”
Stocks
Japan’s Topix and Nikkei indexes slid
0.4 percent at 12:42 p.m. in Tokyo, with both down for a second day. The CSI
300 Index of Chinese shares fell 0.3 percent, while the Hang Seng dropped 0.9
percent. Australia’s S&P/ASX 200 index was up 0.3 percent, poised for its
fourth-straight gain. New Zealand’s S&P/NZX 50 Index was climbing for a
fifth day. The S&P 500 Index fell 0.3 percent to 2 265.18 Wednesday in New
York, while the Dow was off 0.2 percent and closed at 19,941.96.
Currencies
The Bloomberg Dollar Spot Index was
little changed after falling 0.1 percent Wednesday, but is still on course for
a gain of more than 3 percent this year. The New Zealand dollar was up 0.1
percent after the country’s gross domestic product report, while the Swedish
krona added another 0.3 percent after gaining in Wednesday after the Riksbank
extended its quantitative easing program into next year. The euro climbed 0.1
percent to $1.0443. The yen was little changed at 117.56 per dollar Thursday
after appreciating 0.3 percent Wednesday.
Bonds
Treasuries maintained a rally that
saw the US 10-year yield fall 2 basis points Wednesday to 2.53 percent. Japan’s
10-year rate was 1 basis point lower at 0.05 percent. The equivalent Australian
rate was up 1 basis point at 2.83 percent. German bunds of the same maturity
were at 0.25 percent Wednesday.
Commodities
West Texas Intermediate crude oil
rose 0.3 percent to $52.65 a barrel Thursday after dropping Wednesday by 1.5
percent, its first slide in a week. Gold was little changed over the past two
days at $1 131.35 an ounce
BLOOMBERG