Asia stocks echo US drop

A stock trader follows stock information on electronic screens at the New York Stock Exchange. AP Photo/Mark Lennihan

A stock trader follows stock information on electronic screens at the New York Stock Exchange. AP Photo/Mark Lennihan

Published Dec 22, 2016

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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

 

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