Asia Stocks Drop as Yen Gains; Rand Extends Loss – 3 April, 2017
Asian stocks slipped, taking their cue from a weaker U.S. equities session, as a rising yen weighed on shares in Tokyo.
The yen climbed against the dollar for a third day. Equities in Japan, Australia and South Korea all retreated. U.S. shares were led lower by auto manufacturers that reported worse-than-expected U.S. sales for March. China, Hong Kong, Taiwan and India are closed for a holiday. South Africa’s rand extended losses for a seventh day after the country lost its investment-grade credit rating from S&P Global Ratings for the first time in 17 years. The Russian ruble steadied after declines sparked by a subway bomb in St. Petersburg that killed 11 people.
Investors are taking stock ahead of a key U.S. payrolls report on Friday and minutes from the Federal Reserve’s latest meeting on Wednesday. Institute for Supply Management data showed U.S. factories continued to expand production at a robust pace in March, reaffirming faith in the global economic recovery.
What investors will be watching this week:
- Fed speakers include William Dudley, president of the New York Fed, and Governor Daniel Tarullo. Minutes from the March meeting, which are scheduled to be released April 5, should put their recent public comments into perspective. Minutes are also due from the European Central Bank’s latest gathering.
- China’s President Xi Jinping will meet U.S. President Donald Trump for two days starting April 6.
- The Reserve Bank of Australia is projected to keep rates steady Tuesday.
- India’s central bank also will probably hold rates firm later this week.
- U.S. non-farm payrolls are due April 7.
Here are the main moves in markets:
- The yen rose 0.2 percent to 110.68 per dollar as of 9:17 a.m. in Tokyo, after climbing 0.4 percent on Monday.
- The Topix index lost 0.6 percent. Australia’s S&P/ASX 200 Index sank 0.2 percent and South Korea’s Kospi slid 0.4 percent.
- Futures on the S&P 500 lost 0.2 percent. The underlying gauge slid 0.2 percent on Monday and the Stoxx Europe 600 Index declined 0.5 percent.
- The yield on 10-year Treasuries steadied after declining seven basis points to 2.32 percent on Monday.
- Oil rose 0.1 percent in early trading to $50.31 per barrel.
- Gold rose 0.3 percent to $1,256.82, advancing for a third day.
Source: Bloomberg