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Asian Stocks Slip Amid Virus Curbs; Dollar Dips: Markets Wrap

(Bloomberg) — Most Asian stocks slipped Tuesday after a mixed session on Wall Street, as investors assessed the likelihood for further virus-related economic restrictions and the prospects for a U.S. federal spending package. The dollar ticked lower.

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Stocks dipped in Japan, South Korea, Australia and China. S&P 500 futures ticked higher after the gauge fell for a fourth session, capping its longest slide since September to trade about 1.5% below its Dec. 8 record. Drugmakers led the Nasdaq 100 Index higher after Alexion Pharmaceuticals Inc. agreed to be bought by AstraZeneca Plc. Energy producers tumbled after OPEC cut its demand forecast. Oil fluctuated. Treasuries were little changed.

Asia traders will be looking out for industrial production and retail sales data from China. The nation injected cash into its financial system by offering medium-term loans, in the latest effort to ensure banks have sufficient liquidity.



graphical user interface: Bouts of U.S. dollar bullishness this year have resulted in lower highs


© Bloomberg
Bouts of U.S. dollar bullishness this year have resulted in lower highs

Investor optimism about the start of vaccine shots has given way to concern over whether a stimulus bill from a bipartisan group of lawmakers will gain traction. The virus continued to rage in the U.S., threatening harsher restrictions across the nation, and European governments are also tightening measures. New York City Mayor Bill de Blasio warned that people should be prepared for a full shutdown.

“Signs of market fatigue are more prevalent today than a month ago, even as the popular average is near all-time highs,” wrote Paul Nolte, a portfolio manager at Kingsview Investment Management. “The much-awaited correction could come as investors tire of Washington, worry about the Covid cases over the holidays, or some other concern that is likely to pass in a few months.”

Meanwhile, Joe Biden officially clinched the presidency after the Electoral College confirmed his victory, putting pressure on Senate Republicans and others who have refused to recognize his victory to finally acknowledge that President Donald Trump lost.

Here are some key events coming up:

Tuesday brings China industrial production and retail sales data for November.The Federal Reserve meets Tuesday and Wednesday, with markets widely expecting fresh guidance on its continued asset purchases.Policy decisions from the Bank of England and central banks in Mexico, Switzerland and Indonesia are due Thursday. Japan and Russia announce decisions Friday.

These are the main moves in markets:

Stocks

S&P 500 futures rose 0.2% as of 10:42 a.m. in Tokyo. The S&P 500 Index fell 0.4% Monday.Japan’s Topix Index fell 0.3%.S&P/ASX 200 fell 0.3%.Kospi Index fell 0.3%.Hang Seng Index dipped 0.4%.Shanghai Composite Index declined 0.5%.

Currencies

The Bloomberg Dollar Spot Index fell less than 0.1% after decreasing 0.2% Monday.The euro rose 0.1% to $1.2157.The Japanese yen was at 104.08 per dollar.The British pound rose 0.1% to $1.3337.

Bonds

The yield on 10-year Treasuries was little changed at about 0.90%.

Commodities

West Texas Intermediate crude fell 0.4% to $46.81 a barrel.Gold was flat at $1,827 an ounce.

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©2020 Bloomberg L.P.

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