RUS | ENG | All
Enter the email or login, that you used for registration.
If you do not remember your password, simply leave this field blank and you will receive a new, along with a link to activate.

Not registered yet?
Welcome!

2021-07-08 12:35:00

ASIA INDEXES DOWN ANEW

ASIA INDEXES DOWN ANEW

REUTERS July 8, 2021 - Asian stocks fell to a six-week low on Thursday as an extended selloff in tech shares in Hong Kong and rising virus cases added to a broad risk-averse mood, pressuring oil prices and lending support to bonds and the dollar. 

A surprise dovish turn from Chinese policymakers also sparked a rally in sovereign Chinese debt and sent 10-year yields to a 10-month low.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 1% to its lowest since late May, shrugging off a positive tilt from Wall Street.

"Market sentiment is turning somewhat shaky," said OCBC analyst Terence Wu. Japan's Nikkei (.N225) fell 0.6% and S&P 500 futures wobbled 0.3% lower.

The Hang Seng index (.HSI) led losses with a 1.9% drop, its eighth consecutive session in the red, with more falls in internet giants Tencent (0700.HK), Meituan (3690.HK) and Alibaba (9988.HK) as the sector reels from sweeping Chinese regulatory scrutinty.

The longer end of the U.S. yield curve, meanwhile, is in its eighth straight day of a sharp rally that has pushed the ten-year yield nearly 24 basis points lower in just under two weeks. The ten-year yield was last at 1.3113%.

The rally lacks an obvious catalyst but seems to be driven by large position shifts as investors unwind bets on yields rising with growth, resulting in the curve instead flattening on the assumption that an inflation pulse generated by the recovery will be shortlived.

"Equity markets and the economy are saying the reflationary trade has got plenty to go...but when you look at the bond market it's saying the refaltion trade is pretty much over," said Matt Sherwood, head of investment strategy at Sydney-based fund manager Perpetual.

"So we have two absolutely diverse signals from separate parts of the financial markets."

CASES CLIMB

On the virus situation, the spread of the Delta variant continues to drive global case counts higher, with South Korea reporting its highest ever one-day number of infections on Thursday after Indonesia reported record deaths on Wednesday.

On the policy front, though, an end to stimulus looms and minutes from the June Federal Reserve meeting confirmed the central bank has a wary eye on inflation and is prepared to act if necessary - even if it still thinks that is a long way off.

"The message from the Fed remains that momentum continues to improve, necessitating a less dovish stance," said analysts at TD Securities in a market note.

"This has made higher inflation less likely amid a more responsive Fed, potentially keeping the curve flatter for now."

The spread between U.S. two-year and ten-year yields touched its narrowest since February overnight.

Stock markets, however, were focused on the likelihood of tapering being some way off and the S&P 500 (.SPX) and Nasdaq (.IXIC) notched fresh record closing highs.

China looks to be leaning the other way, and late on Wednesday cabinet said policymakers will use timely cuts in the bank reserve requirement ratio (RRR) to support the real economy, especially small firms.

"Since mid-2018, the State Council has mentioned RRR cuts seven times (excluding the memo yesterday), and the PBoC has delivered RRR cuts six times," Nomura analysts wrote in a note.

"Based on this track record, we view an RRR cut as highly likely in coming weeks, though it is not guaranteed," they said.

Elsewhere, the dollar retained bid on the risk of higher U.S. interest rates and as investors looked for safety.

The dollar rose broadly in early Asia trade, reeling back recent gains in the New Zealand dollar to peg it back at $0.6986, while the euro sat near Wednesday's three-month low at $1.1786. .

The safe-haven yen was also firm at 110.56 per dollar.

In commodity markets oil was weak for a third day amid anxiety about a rise in supply after talks among producers collapsed this week. Brent futures were last down 0.5% at $73.09 a barrel and U.S. crude fell 0.6% .

Ahead on Thursday traders are awaiting the announcement of results of the European Central Bank's strategy review where it is likely to tweak the definition of its inflation target.

Central banks in Malaysia, Poland and Peru also meet to set rates.

-----


Earlier:

ASIA INDEXES DOWN ANEW
2021, July, 7, 11:10:00
CHINA INDEXES UP
At the close, the Shanghai Composite index was up 0.66% at 3,553.72 and the blue-chip CSI300 index was up 1.13%.
ASIA INDEXES DOWN ANEW
2021, July, 2, 12:30:00
ASIA INDEXES UPDOWN
Japan's Nikkei (.N225) was 0.3% lower while MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 0.2% in thin trade as Hong Kong markets were shut for a holiday.
ASIA INDEXES DOWN ANEW
2021, June, 30, 13:05:00
ASIA'S INDEXES UP ANEW
Chinese blue-chips (.CSI300) added 0.1%, Australian shares (.AXJO) were up 0.58% and set for a ninth straight month of gains, and Seoul's Kospi (.KS11) rose 0.35%. Japan's Nikkei (.N225) edged up 0.06%.
ASIA INDEXES DOWN ANEW
2021, June, 29, 13:20:00
CHINA INDEXES DOWN
Chinese blue-chips fell more than 1%, taking MSCI’s index of emerging market shares 0.4% lower. Investors are also looking forward to U.S. jobs data that could sway the Federal Reserve’s policy outlook.
ASIA INDEXES DOWN ANEW
2021, June, 25, 12:35:00
ASIA'S INDEXES UP
Chinese blue-chips (.CSI300) rose 0.43%, Hong Kong's Hang Seng (.HSI) added 0.61%, Seoul's Kospi (.KS11) was up 0.79% and Australian shares (.AXJO) climbed 0.22%. Japan's Nikkei (.N225) rose 0.59%.
ASIA INDEXES DOWN ANEW
2021, June, 23, 11:40:00
CHINA INDEXES UP ANEW
t the close, the Shanghai Composite index was up 0.25% at 3,566.22, rising for the third consecutive session. The blue-chip CSI300 index was up 0.49%.
ASIA INDEXES DOWN ANEW
2021, April, 7, 10:20:00
ASIA'S INDEXES UPDOWN
Japan’s Nikkei was a shade higher while Australian shares rose 0.6% and South Korea’s KOSPI added 0.5%. Chinese shares, however, were weaker with the bluechip CSI300 index down about 1% after a strong rally last week.
All Publications »
Tags: ASIA, INDEXES, SHARES, STOCKS, BONDS
Chronicle:
ASIA INDEXES DOWN ANEW
2021, July, 9, 12:04:00
HYDROGEN RUSSIA AND CIS, Moscow, 20-21 October 2021
International Conference and Exhibition ‘Hydrogen Russia and CIS’ brings together more than 200 senior executives of hydrogen production plants from Russia and the CIS
ASIA INDEXES DOWN ANEW
2021, July, 9, 12:00:00
ARGENTINA'S NUCLEAR SMR
Before work was suspended, it was in line to be the world’s first operating SMR. The government licensed it as a prototype in 2009.
ASIA INDEXES DOWN ANEW
2021, July, 9, 11:55:00
CHILE'S COAL GENERATION DOWN
In June 2021, the Chamber of Deputies of Chile has approved a bill that prohibits the installation and operation of coal-fired power plants.
ASIA INDEXES DOWN ANEW
2021, July, 8, 12:50:00
OIL PRICE: NEAR $73
Brent slipped by 23 cents, or 0.3%, to $73.20 a barrel, WTI were down 33 cents, or 0.5%, at $71.87 a barrel.
ASIA INDEXES DOWN ANEW
2021, July, 8, 12:45:00
OIL PRICES 2021-22: $72-$67
We expect rising production will reduce the persistent global oil inventory draws that have occurred for much of the past year and keep prices similar to current levels, averaging $72/b during the second half of 2021 (2H21).
ASIA INDEXES DOWN ANEW
2021, July, 8, 12:40:00
EUROPE CLIMATE RULES
According to draft proposals seen by market sources, the CBAM will replace the current system of free carbon allowances for metals sectors, and tighten allowances in the European Emissions Trading System generally, a bone of contention for some.
ASIA INDEXES DOWN ANEW
2021, July, 8, 12:30:00
LNG FOR BRAZIL, ARGENTINA
Brazil is responsible for almost half of the imports into South America for the record month, accounting for almost half of the total demand, or 37 Bcf for the month. Imports into Argentina have also been on the rise as domestic gas production and imports from Bolivia have proved insufficient to meet the projected demand for winter in the Southern Hemisphere.
All Publications »