Asian stocks were mixed Thursday as global growth concerns resurfaced and U.S. equities fell back. The dollar steadied after six days of gains and the yen edged higher.
Shares in Japan and South Korea dropped, while Australian equities eked out gains. The S&P 500 Index fell for a third day after reports showed the U.S. trade deficit widened in 2018 to a 10-year high and private companies added fewer employees than analysts forecast last month. Oil fell after a bigger-than-expected buildup in U.S. crude stockpiles reignited supply concerns. Treasury yields ticked lower.
Trade remains high on investors’ agenda as they wait for details of a possible accord, with President Donald Trump said to be pressuring U.S. negotiators to cut a deal with China soon in hope of fueling a market rally. The Organization for Economic Cooperation and Development on Wednesday said it downgraded almost every growth forecast for Group of 20 nations. Next up for traders will be any policy clues emanating from Thursday’s decision at the European Central Bank and then the monthly U.S. jobs report on Friday.
“We’re seeing a slowdown in the economy, we’re seeing a slowdown in corporate earnings,” Oliver Pursche, chief market strategist at Bruderman Asset Management, told Bloomberg TV in New York. “The market is waiting to see if things are going to turn out better or worse than they expect, and we just don’t know.”
Earlier, the Canadian dollar fell after the Bank of Canada toned down its conviction that interest rates will need to go higher. The pound steadied with just days to go until Prime Minister Theresa May has to bring a revised accord back to the parliament.
Here are some key events coming up:
- ECB policy makers are expected to leave rates unchanged amid a deteriorating outlook. President Mario Draghi will hold a news conference on Thursday after the decision.
- The U.S. jobs report Friday may show hiring moderated in February. Nonfarm payrolls may have increased by 185,000 while the jobless rate fell to 3.9 percent, according to estimates.
These are the latest moves in markets:
Stocks
- Japan’s Topix index lost 0.8 percent as of 9:09 a.m. in Tokyo.
- Futures on the S&P 500 Index dipped 0.2 percent. The underlying gauge fell 0.7 percent Wednesday.
- Australia’s S&P/ASX 200 Index rose 0.2 percent.
- Hang Seng futures earlier slid 0.1 percent.
Currencies
- The yen rose 0.1 percent to 111.63 per dollar.
- The offshore yuan added 0.1 percent to 6.7127 per dollar.
- The Bloomberg Dollar Spot Index added 0.2 percent, hitting the highest in three weeks with its sixth straight advance Wednesday.
- The euro was little changed at $1.1313.
Bonds
- The yield on 10-year Treasuries fell one basis point to 2.69 percent.
Commodities
- WTI crude fell 0.2 percent to $56.12 a barrel.
- Gold rose 0.1 percent to $1,287.78 an ounce.
Source Bloomberg