Asian shares hesitant after Wall Street sell-off, dollar buoyant By Reuters

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<span>© Reuters. FILE PHOTO: Passersby are reflected on an electric stock quotation board outside a brokerage in Tokyo, Japan April 18, 2023. REUTERS/Issei Kato/file photo</span><br />
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<p>By Stella Qiu</p>
<p>SYDNEY (Reuters) – Asian shares were subdued on Thursday after Fitch downgraded U.S. sovereign debt sparking profit-taking, with investors now shifting focus to Bank of England’s rate decision and earnings from Apple (NASDAQ:) and Amazon.</p>
<p>Both and Nasdaq futures added 0.2%, following a heavy wave of selling on Wall Street overnight. </p>
<p>In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.2%, having also suffered a colossal drop of 2.3% just a day earlier. That compared with a 5.4% monthly gain in July. </p>
<p> fell 1.1%, bringing the losses so far in August to 2.5%, giving back some of the 7.5% surge seen a month earlier. </p>
<p>The yield on 10-year Japanese government bonds (JGB) rose to 0.65% on Thursday, the highest since April 2014, after the Bank of Japan loosened its grip on yield curve control last week. </p>
<p>Chinese blue chips were 0.2% higher while Hong Kong’s was mostly flat. A private survey showed China’s services activity expanded at a faster place in July. </p>
<p>“I reckon that even though you could argue that the Fitch downgrade is outdated … I think you’ve seen enough movements for some things to be burned and some questions to be asked at these highs,” said Matt Simpson, a market analyst at City Index in Brisbane. </p>
<p>“I reckon at best you probably could look at some choppy trade around these highs or at worst we can have a bit of a deeper pullback.”</p>
<p>Overnight, Nasdaq and posted their biggest declines since February and April, respectively, after a blistering July driven by better-than-expected earnings and hopes of a soft landing for the U.S. economy.[.N]</p>
<p>Later in the day, Apple is expected to report the largest third-quarter drop in revenues since 2016 as sales of iPhones slow.</p>
<p>Amazon.com Inc (NASDAQ:), a bellwether for consumer spending, is expected to report a more than 8% rise in second-quarter revenue, aided by a recovery in the advertising and e-commerce businesses. </p>
<p>Risk sentiment has been tempered by higher long-term U.S. yields after stronger-than-expected private employment data and the announced refunding of the U.S. government’s maturing debt. </p>
<p>U.S. 10-year yields hovered at 4.0856% in Asia, just a touch below a nine-month top of 4.1260% hit overnight. 30-year yields were up 2 basis points at 4.1847%, nearing the highest level since November. </p>
<p>The U.S. dollar was buoyant in Asia at a one-month high of 102.63 against its major peers, after the strong private payrolls data added to signs of labour market resilience in the U.S. The closely-watched U.S. nonfarm payrolls report is due on Friday. [FRX/]</p>
<p>The risk-sensitive Australia dollar snapped a key support level to hover at $0.6532, just a touch above its 2023 low of $0.6459. </p>
<p>The Bank of England is expected to raise interest rates later in the day. Most economists expect the central bank to hike by a quarter-point to a 15-year high of 5.25%, but the risk is a repeat of June’s surprise half-point increase., which could fuel bets that major central banks are not done tightening yet.</p>
<p>Overnight, Brazil’s central bank cut its benchmark interest rates for the first time in three years and by a larger-than-expected 50 basis points, marking the start of an easing cycle in emerging markets now that U.S. rates have likely peaked. </p>
<p>Elsewhere, oil prices were marginally higher as markets weighed bullish U.S. inventory data and a likely extension of OPEC+ output cuts. futures were up 0.2% at $83.33 per barrel and U.S. West Texas Intermediate crude futures rose 0.1% to $79.6.</p>
<p>Gold prices edged up 0.1% to $1,936.19 per ounce. </p>
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<br /><a href="https://www.investing.com/news/stock-market-news/asian-shares-hesitant-after-wall-street-selloff-dollar-buoyant-3142805">Source link </a></p><p>The post <a href="https://forextraderhub.com/asian-shares-hesitant-after-wall-street-sell-off-dollar-buoyant-by-reuters.html">Asian shares hesitant after Wall Street sell-off, dollar buoyant By Reuters</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>