- Asian stocks trade mixed outside of New Zealand as traders wait for more clues from China and follow Wall Street’s passivity.
- Ten-year US Treasury yields shoot monthly highs amid recession fears, hawkish Fedspeak.
- RBNZ’s Orr, mixed trading figures for July weigh in at NZX 50.
Markets in the Asia-Pacific region have seen mixed trading except in New Zealand as traders await further clues to battle the latest recession concerns. Also, chatter about China’s impending stimulus and softer oil prices is keeping traders on the sidelines.
That said, the MSCI index of Asia-Pacific stocks outside Japan is down 0.05% at the latest, while Japan’s Nikkei 225 remains indecisive around the 28,945 level. It’s worth noting that New Zealand’s benchmark NZX 50 is down close to 1.0% as the Reserve Bank of New Zealand (RBNZ) governor hints at more rate hikes, while July trading data failed to impress buyers.
Furthermore, WTI crude oil remains under pressure around the intraday low of $89.60 as fears of an economic slowdown weigh on the energy benchmark. Also exerting downward pressure on the black gold is the firmer US dollar.
Elsewhere, Wall Street closed mixed and weighed in on the S&P 500 Futures, down 0.17% intraday at the latest. Furthermore, the US 10-year Treasury yield reverses the previous day’s decline from the monthly high to 2.91% at press time, up three basis points (bps) at press time.
Reuters outlined broad market performance but noted that Chinese blue chips were flat while South Korea lost 0.5%. The threat of higher borrowing costs loomed over markets as no fewer than four US Federal Reserve officials indicated that there is more work to be done on interest rates, the only difference being how fast and high they can go. news too.
It’s worth noting that a lack of key data/events also appears to be limiting Asia-Pacific stock traders’ ability to move the markets. Furthermore, investors are waiting for more action from the People’s Bank of China (PBOC) and next week’s Jackson Hole meeting has also been challenging investors lately.