Technology Shares in Asia Gain on Apple Results: Markets Wrap

Asian technology stocks climbed with U.S. equity-index futures after results from Apple Inc. buoyed sentiment in the sector.

Suppliers to Apple such as Murata Manufacturing Co. and AAC Technologies Holdings Inc. led gains on an index that tracks tech companies in the MXAP Asia Pacific Index as Nasdaq futures advanced after Apple projected revenue in the current quarter that topped analysts’ estimates. The kiwi sank after hiring declined unexpectedly in New Zealand. Treasuries were steady after climbing with the dollar as data gave mixed signals on the strength of American economic growth. A drop in the Bloomberg Commodity Index weighed on raw-material producers in Asia after a stellar run.

Company earnings are supporting the case for a firm global economy that’s propelling equity gauges to new highs. Still, with many stock valuations well above average, monetary policy in the U.S. tightening and Donald Trump’s administration mired in controversy, there remains a degree of caution in markets.

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Over in India, the central bank is expected to ease policy and announce steps to absorb excess bank liquidity after consumer prices slowed sharply. Policy makers will probably cut the benchmark rate by 25 basis points to 6 percent, economists said.

Meanwhile, bets on Venezuelan default are climbing and the implied probability of a missed payment over the next year has risen to 64 percent, according to data compiled by Bloomberg. The government’s $3 billion of bonds due in 2022 fell to a 15-month low and traded at 41 U.S. cents on Tuesday after President Nicolas Maduro moved closer to imposing authoritarian rule in the country.

Here are some key upcoming events:

  • Brazil’s Congress votes on Wednesday on whether to put President Michel Temer on trial.
  • Bank of England Governor Mark Carney may signal a more hawkish tone at its quarterly Inflation Report on Thursday. The central bank will likely keep rates on hold.
  • U.S. jobs data on Friday will probably show employers added about 180,000 workers in July.

Here are the main moves in markets:

Stocks

  • Japan’s Topix index gained 0.2 percent. Honda Motor Co. jumped following the company’s higher profit forecast. Australia’s S&P/ASX 200 Index fell 0.6 percent and South Korea’s Kospi index added 0.1 percent. 
  • Hong Kong’s Hang Seng Index opened higher, while the Shanghai Composite Index was little changed.
  • Nasdaq 100 futures climbed 0.7 percent as of 10:36 a.m. in Tokyo. Apple shares rose more than 6 percent in after-hours trading, putting the stock on course for a record high when regular trading starts. S&P 500 e-mini futures were up 0.1 percent. 
  • The MSCI Asia Pacific Index was little changed. Raw-material producers such as BHP Billiton Ltd. that had been buoyed by the recent rally in commodities declined as the gain in resources stalled.

Currencies

  • The kiwi slide 0.6 percent to 74.24 U.S. cents. Read more on New Zealand’s jobs report here
  • The euro bought $1.1807 after slipping 0.3 percent on Tuesday.
  • The Bloomberg Dollar Spot Index was little changed. It rose 0.2 percent on Tuesday.

Bonds

  • The yield on 10-year Treasuries was at 2.27 percent after falling four basis points on Tuesday.
  • 10-year Australian government notes saw yields drop two basis points to 2.70 percent.

Commodities

  • West Texas Intermediate crude retreated from above $50, falling 0.7 percent to $48.84 a barrel. The contract fell 2 percent on Tuesday, the first decline in more than a week,
    after an industry report was said to show U.S. crude inventories unexpectedly jumped.
  • The Bloomberg Commodity Index lost 1 percent on Tuesday.

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