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NEW YORK: Asian stocks were due to open in the red on Friday after Wall Street benchmarks posted their biggest one-day declines in nearly three months as fresh fears about the economy sent investors to bonds and safe haven coins.
However, analysts are not expecting sales in Asia to match Wall Street moves, which were driven by a sharp correction in tech stocks, as investors await key US data. They will post later on Friday.
“Asia has to open lower,” said Rodrigo Catril, senior currency strategist at the National Australian Bank, although he noted that investors “will wait for another indication from the United States on whether the technology correction is in effect.”
He said the later US employment report has grown in prominence after a weak reading on US private payrolls on Wednesday.
Australian S & P / ASX 200 futures lost 1.95% in early trading, while Japanese Nikkei 225 futures fell 0.32%.
Hong Kong Hang Seng Index futures lost 1.30% and S&P 500 futures fell 0.64%.
Bond and currency traders are also likely to stay on the sidelines until the outlook clears, said Imre Speizer, New Zealand chief strategy officer at Westpac.
US Treasury yields fell, while the Japanese yen and the Swiss franc rose against the dollar overnight on safe haven purchases as stocks fell.
Investors are also expecting the July retail sales data in Australia, which is expected to show an increase from June, although such data is unlikely to have much of an impact unless it widely exceeds expectations, Speizer said.
The dollar index was up 0.042% and the euro was up 0.03% at $ 1.1857.
The Australian dollar fell 0.10% against the dollar at $ 0.727.
Benchmark 10-year US Treasuries last rose 5/32 in price to yield 0.6347%, from 0.651% on Wednesday.
The US stock market movements marked the biggest single-day percentage declines for the Nasdaq and S&P 500 since June 11 and since June 26 for the Dow Jones. But the S&P 500 and the Nasdaq are still near record highs.
Stock investors’ perceptions of the economy have changed. After days of seeing green shoots in global economic data, investors on Thursday took advantage of a weekly U.S. payroll report and pessimistic comments from Chicago Federal Reserve Chairman Charles Evans, who called for more stimulus to help. the economy to regain its pre-pandemic strength.
While initial weekly jobless claims fell more than anticipated, they remained extremely high.
The Dow Jones Industrial Average fell 2.78%, the S&P 500 lost 3.51% and the Nasdaq Composite fell 4.96%.
European stocks closed 1.4% lower after rising more than 1.2% as weakness in tech names spread, and the group fell 3.76% in its biggest one-day decline since April 21.
The pan-European STOXX 600 Index lost 1.40% and MSCI’s Global Stocks indicator lost 2.51% and was on track for its biggest one-day percentage drop since June 11 after the record close of the Wednesday.
– Reuters
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