Stocks Drop With U.S. Yields on U.S.-China Tension: Markets Wrap

(Bloomberg) -- Asian stocks and American equity futures fell after the U.S. Senate passed legislation supporting Hong Kong protesters, triggering a renewed warning of retaliation from China and potentially complicating U.S.-China trade talks.Treasuries rose and the offshore yuan hit session lows after China’s unspecified warning. Hong Kong shares fell along with Japanese and South Korean benchmarks. Australian equities saw the biggest declines, after allegations of financial crimes at Westpac Banking Corp. hit financial stocks. The S&P 500 Index ended flat on Tuesday amid disappointing reports at some American retailers, though the Nasdaq Composite eked out a fresh high. Oil steadied after sliding more than 3%.With no signing date set yet for a trade deal, the Hong Kong situation could complicate reaching any agreement. The bill requiring reviews of the city’s autonomy now goes to the House for another vote before it goes to President Donald Trump.Meantime, disappointing reports from U.S. retailers Tuesday reminded investors that growth rates have yet to rebound. Japanese data Wednesday showing a tumble in exports also underlined the global hit from the trade war.“It’s a time for the thoughtful investor to be more cautious,” George Ball, chairman of Houston investment firm Sanders Morris Harris Group Inc., said on Bloomberg TV. “Even the best economy that you can think of is going to pull back, it has to happen. And I think it’s going to happen, in the U.S. markets at least, fairly soon.”Elsewhere, the pound retreated after U.K. opposition leader Jeremy Corbyn beat expectations in the first leadership debate ahead of next month’s election. The currency had gained earlier this week on signs that Prime Minister Boris Johnson was heading for a Conservative majority.Here are some key events coming up this week:U.S. economic indicators due for release include initial jobless claims on Thursday.Federal Reserve speakers this week include district bank presidents Loretta Mester and Neel Kashkari.European central bankers speaking this week include European Central Bank President Christine Lagarde, Bundesbank chief Jens Weidmann, along with Yves Mersch, Luis de Guindos, Pablo Hernandez de Cos and Philip Lane.These are the main moves in markets:StocksJapan’s Topix index fell 0.6% as of 1:15 p.m. in Tokyo.Hong Kong’s Hang Seng declined 0.6%.The Shanghai Composite lost 0.4%Futures on the S&P 500 Index fell 0.2%. The underlying index slid 0.1% on Tuesday.Australia’s S&P/ASX 200 Index lost 1.4%.South Korea’s Kospi index dropped 1.3%Euro Stoxx 50 futures slid 0.2%.CurrenciesThe yen edged up to 108.47 per dollar.The offshore yuan dipped 0.1% to 7.0327 per dollar.The Bloomberg Dollar Spot Index was flat.The pound was at $1.2909, down 0.1%.The euro bought $1.1074, little changed.BondsThe yield on 10-year Treasuries fell three basis points to 1.75%.Australia’s 10-year yield slid more than four basis points to 1.08%.CommoditiesWest Texas Intermediate crude was flat at $55.22 a barrel after sliding more than 3% on Tuesday.Gold rose 0.2% to $1,474.77 an ounce.\--With assistance from Christopher Anstey, Sophie Caronello and Jessica Summers.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, Ravil ShirodkarFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

https://finance.yahoo.com/news/asia-...html?.tsrc=rss