Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

GLOBAL MARKETS-Asia stocks bounce on firmer Chinese lead, pound steadies

Published 04/09/2019, 03:46
Updated 04/09/2019, 03:50
© Reuters.  GLOBAL MARKETS-Asia stocks bounce on firmer Chinese lead, pound steadies
EUR/USD
-
AXJO
-
JP225
-
DX
-
CL
-
US10YT=X
-
SSEC
-
MIAPJ0000PUS
-
CSI300
-
DXY
-

* MSCI Asia-Pacific index up 0.5%, Shanghai stocks rise

0.45%

* Benchmark U.S. yields hover near 3-year lows

* Sterling regains some ground after Johnson setback in

parliament

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Shinichi Saoshiro

TOKYO, Sept 4 (Reuters) - Asian stocks bounced on Wednesday,

led by Chinese markets after a report showed growth in the

country's service sector accelerating despite broader economic

headwinds, while the pound halted its decline on hopes a no-deal

Brexit may yet be averted.

The Shanghai Composite Index .SSEC added 0.45% while the

blue-chip CSI300 index .CSI300 gained 0.5% after activity in

China's services sector expanded at the fastest pace in three

months in August, according to a business survey. MSCI's index of Asia-Pacific shares outside Japan

.MIAPJ0000PUS snapped two days of losses and gained 0.5%.

While some markets in Asia enjoyed gains, sentiment in the

wider region remained subdued amid worries about a global

recession.

Data on Tuesday showed the U.S. manufacturing sector

contracted in August for the first time since 2016 amid worries

about a weakening global economy and rising trade tensions

between China and the United States, the Institute for Supply

Management's (ISM) report on Tuesday showed. Australian stocks .AXJO lost 0.75% and Japan's Nikkei

.N225 was little changed.

According to CME's FedWatch tool, traders have almost fully

priced in a 25 basis point (bp) interest rate cut at the Fed's

Sept. 17-18 policy meeting while expectations for another 25 bp

reduction being implemented at the October meeting have risen to

61% from 53% over the past month.

The 10-year U.S. Treasury US10YT=RR yielded 1.474% after

stooping to 1.429% on Tuesday, its lowest since July 2016.

"As the decline in U.S. yields show, the markets will be

urging the Fed on to do more even though a September rate cut is

already priced in," said Masahiro Ichikawa, senior strategist at

Sumitomo Mitsui DS Asset Management.

POUND FINDS FOOTING FOR NOW

Sterling was last up 0.1% at $1.2097 GBP=D3 after falling

on Tuesday to $1.1959, the lowest level since October 2016.

The pound's bounce came after a British cross-party alliance

defeated Prime Minister Johnson in an effort to block a

"no-deal" Brexit, leading the premier to push for a snap

election. FRX/

The dollar index .DXY against a basket of six major

currencies stood at 98.938 after rising overnight to 99.37, its

highest level since May 2017, having lost some ground in the

wake of Tuesday's poor ISM reading.

The euro was steady at $1.0973 EUR= after sliding to a

28-month low of $1.0926 overnight as investors braced for a

potential interest rate cut by the European Central Bank next

week.

U.S. crude oil futures CLc1 rose 0.5% to $54.22 per

barrel, trimming some of the previous day's large losses. The

contracts had shed more than 2% on Tuesday after the weak U.S.

ISM data raised concerns about a weakening global economy. O/R

(Editing by Richard Borsuk and Sam Holmes)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.