(Bloomberg) — Stocks in Asia fell slightly after early gains, with key U.S. inflation data released Tuesday and a summit between Joe Biden and Xi Jinping later this week dominating investor interest.
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Stocks fell in Hong Kong, mainland China and Australia, with stocks in Japan and South Korea flat. US stock futures fell, following a technology-led rally on Wall Street on Friday. Markets are closed in Singapore and Malaysia for holiday.
All eyes are on the upcoming US consumer price data, which is expected to show inflation fell to an annual rate of 3.3% in October, down from 3.7% the previous month.
Meanwhile, more signs of a thaw in US-China relations are emerging ahead of Wednesday’s summit between Joe Biden and Xi Jinping, where Beijing is said to be considering ending the grounding of Boeing planes.
“All of these things are starting to show that both sides have an intention to make it look like a better outcome,” said Helen Chu, chief investment officer at Nan Fung Trinity HK Ltd, commenting on US-China relations in 2019. Interview with Bloomberg TV. He added: “We are not expecting a love fest or any kind of great results or permanent solution, but there may be a good period of time before the US elections next year.”
Australian and New Zealand government bonds fell after a sell-off in short-term Treasuries on Friday. These declines failed to impact the long end of the curve. The 30-year bond yield remained largely unchanged, while the 10-year bond yield rose by three basis points.
Treasury bonds and the dollar were stable on Monday. Elsewhere, oil prices extended three weeks of declines amid growing concerns about global demand and a decline in risk premiums resulting from the war between Israel and Hamas.
In Japan, producer prices fell in October compared to the previous month. India will release its latest inflation report on Monday, and new loan and money supply figures for China may also be released.
ANZ Group Holdings Ltd shares fell. After the bank’s CEO warned of a difficult economic environment in the future in its recent earnings results. The group’s profits were supported by rising interest rates.
Other companies scheduled to report include Hon Hai Precision Industry, also known as Foxconn, Chinese tech giants JD.com Inc and Tencent Holdings Ltd., Japanese financial heavyweights Mitsubishi UFJ Financial Group and Mizuho Financial Group, and Walmart Inc. And Siemens.
JD.com and Alibaba Group Holding reported higher sales on Singles’ Day, following deep discounts offered by e-commerce groups.
Gold is slightly lower while Bitcoin is hovering near $37,000 – the highest price in 18 months.
Upcoming events this week:
European Central Bank Vice President Louis de Guindos speaks on Monday
US Consumer Price Index, Tuesday
Unemployment claims in the UK, Tuesday
Chicago Fed President Austin Goolsbee speaks Tuesday
Retail sales in China, Wednesday
UK Consumer Price Index, Wednesday
US Retail Sales, Producer Price Index, Wednesday
New home prices in China, Thursday
Initial unemployment claims in the US, Thursday
New York Federal Reserve Bank President John Williams on Thursday
Housing starts in the US on Friday
European Central Bank President Christine Lagarde speaks on Friday
Chicago Fed President Austin Goolsbee, Boston Fed President Susan Collins and San Francisco Fed President Mary Daly speak Friday.
Some key movements in the markets:
Stores
S&P 500 futures were down 0.5% as of 1:50 p.m. Tokyo time.
Nasdaq 100 futures fell 0.5%
There was little change in the Japanese Topix index
Australia’s S&P/ASX 200 index fell 0.3%.
The Hang Seng Index in Hong Kong fell by 0.1%.
Shanghai Composite Index fell 0.2%
Euro Stoxx 50 futures rose 0.1%.
Currencies
The Bloomberg Dollar Spot Index was little changed
The euro was unchanged at $1.0686
The Japanese yen fell 0.1 percent to 151.72 yen to the dollar
There was little change in the yuan in external transactions at 7.3101 to the dollar
There was little change in the Australian dollar at 0.6360 US dollars
Digital currencies
Bitcoin fell 0.7% to $36,925.46
Ethereum fell 0.9% to $2,042.08
Bonds
The yield on 10-year Treasury bonds was little changed at 4.66%.
The yield on 10-year Japanese bonds rose four basis points to 0.890%.
The 10-year Australian bond yield rose 6 basis points to 4.68%.
Goods
West Texas Intermediate crude fell 1% to $76.37 a barrel
Gold fell in spot transactions by 0.3 percent to $1,935.27 per ounce
This story was produced with assistance from Bloomberg Automation.
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