Stocks Fall as Trade Talks Eyed; Yen Slips: Markets Wrap

(Bloomberg) -- Stocks in Asia slipped as investors monitored the latest developments in trade discussions between America and China. U.S. equity futures advanced and the yen edged lower.Hong Kong and China had the biggest declines, while Sydney rose. Japan is closed for a holiday. The onshore yuan fell amid caution in the run-up to next week’s national holidays. The Korean won sank as exports continued to deteriorate. China’s withdrawal from a planned visit to U.S. farm states had nothing to do with trade talks, according to a report.While traders remain on edge due to fragile negotiations on the trade front ahead of next month’s planned high-level talks, markets are pricing increased action from many central banks around the world. Global equities are on course for an advance this month following the Federal Reserve’s second interest-rate cut of 2019.“Global growth risks are rising,” Beverley Morris, director of rates and inflation at QIC Ltd. in Brisbane, told Bloomberg TV. “It’s certainly not panic stations at this stage, but certainly in terms of our portfolio actions, we are being more cautious.”With Tokyo closed for a holiday, market moves may be exacerbated due to thin liquidity. Cash Treasuries won’t trade until the London open and Japanese equities are shut.Elsewhere, oil advanced following a report that full repairs to Saudi oil fields hit by the drone attack may take many months.These are some key events coming up this week:New York Fed President John Williams speaks at the U.S. Treasury Market Conference hosted at his bank Monday. San Francisco Fed President Mary Daly delivers remarks in Salem, Oregon.Decisions are due Wednesday from central banks in New Zealand and Thailand. Thursday brings a monetary policy decision in the Philippines.Core PCE -- the Fed’s preferred inflation measure -- is forecast for 1.8%, the strongest reading since January. That’s due Friday.Here are the main moves in markets:StocksFutures on the S&P 500 Index rose 0.4% as of 12:25 p.m. in Sydney. The underlying gauge fell 0.5% on Friday.Hong Kong’s Hang Seng Index fell 0.4%.The Shanghai Composite Index dropped 1%.Australia’s S&P/ASX 200 Index added 0.5%.South Korea’s Kospi index slid 0.1%.Euro Stoxx 50 futures dipped 0.1%.CurrenciesThe yen fell 0.1% to 107.69 per dollar.The offshore yuan rose 0.1% to 7.1155 per dollar.The euro bought $1.1025.The British pound was steady at $1.2486.The won fell 0.6% to 1,194.88 per dollar.BondsFutures on 10-year Treasuries were little changed. The yield on 10-year notes fell six basis points to 1.72% on Friday.Australia’s 10-year yield slipped three basis points to 0.99%.CommoditiesGold rose 0.1% to $1,518.33 an ounce.West Texas Intermediate crude gained 1% to $58.67 a barrel.To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.netTo contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Andreea PapucFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

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