(Bloomberg) – Asian stocks got off to a cautious start on Wednesday as China’s crackdown on its tech giants and the spread of the Covid-19 delta strain dampened sentiment. Crude oil has retreated.
Benchmarks edged down in Japan, where SoftBank Group Corp. fell after a potential blockage of its $ 40 billion sale of Arm Ltd. at chip company Nvidia Corp. Shares were slightly higher in Australia and South Korea. US equity contracts fell. Overnight, corporate profits took the S&P 500 to another record high.
Chinese stocks listed in the United States have slipped amid fears that online gaming may be the next industry in the crosshairs of Beijing’s sweeping regulatory crackdown on tech giants. The revenues of Alibaba Group Holding Ltd. missed estimates for the first time in more than two years, a sign that the crackdown is wreaking havoc.
The 10-year US Treasury yield continued to decline and oil plunged to $ 70 a barrel. The delta strain is exacerbating concerns that the pandemic rebound is running out of steam. A fall in the unemployment rate in New Zealand boosted rate hike bets, supporting its currency but weighing on the 10-year bond.
Investors remain cautious as they rate earnings robust against rising Covid-19 cases and concerns about inflation. Key US employment data this week could fuel market swings if it causes investors to adjust their expectations about the Federal Reserve’s likely timeline to possibly gradually reduce stimulus measures. Fed Vice President Richard Clarida is due to speak on monetary policy on Wednesday.
“We think the delta variant is not going to stop the recovery, it will just delay it,” Laila Pence, president of Pence Wealth Management, told Bloomberg Television. âThe Federal Reserve is going to live with a lot more inflation. They don’t want to derail the recovery.
The spread of the delta coronavirus variant has pushed the herd immunity threshold to over 80% and potentially almost 90%, according to a briefing from the Infectious Diseases Society of America.
Here are some key events to watch out for this week:
The quarterly Treasury repayment announcement is due on Wednesday Federal Reserve Vice Chairman Richard Clarida is due to speak on Wednesday The Bank of England is expected to keep its benchmark interest rate and bond buying target unchanged on Thursday Reserve Bank of India monetary policy briefing Friday US jobs report expected to show another robust month of hiring on Friday
For more market analysis, read our MLIV blog.
S&P 500 futures slipped 0.2% at 9:06 am in Tokyo. The S&P 500 rose 0.8%. Futures on the Nasdaq 100 slipped 0.1%. The Nasdaq 100 rose 0.7% Topix index fell 0.2% Australian S & P / ASX 200 index added 0.1% Kospi index rose 0.1% The future of the Hang Seng index rose 0.2% earlier
The yen was trading at 108.96 per dollar, up 0.1%. The offshore yuan was at 6.4660 to the dollar.
The yield on 10-year Treasuries was little changed at 1.17% The yield on 10-year Australian bonds remained stable at 1.16%
West Texas Intermediate crude fell 0.2% to $ 70.41 per barrel Gold was at $ 1,810.32 per ounce
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