By Suzanne Barlyn
NEW YORK, Oct 14 (Reuters) - Asian markets were off to a
mixed start on Thursday as hopes of U.S. fiscal stimulus before
the presidential election faded and a record number of new
coronavirus infections in parts of Europe propelled investors
toward safe-havens such as gold.
Downbeat comments from U.S. Treasury Secretary Steven
Mnuchin that a stimulus deal was unlikely be made before the
Nov. 3 vote weighed on fragile investor sentiment. With COVID-19 cases surging, some European nations are
closing schools as authorities braced for a repeat of the
nightmare scenario seen earlier this year. In a mixed Asian open, Australian equities bucked Wall
Street declines, opening slightly higher because of "good
support" for material and mining stocks, said Michael McCarthy,
CMC Markets chief market strategist.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS slipped 0.1%.
Australia's S&P/ASX 200 .AXJO rose 0.6%, while Japan's
Nikkei 225 .N225 fell 0.3%. Hong Kong's Hang Seng index
futures .HSI .HSIc1 were down 0.49%.
E-mini futures for the S&P 500 EScv1 were flat.
On Wall Street, the Dow Jones Industrial Average .DJI fell
0.58%, the S&P 500 .SPX lost 0.66% and the Nasdaq Composite
.IXIC dropped 0.8%.
Bank of America BAC.N fell 5.3% and Wells Fargo WFC.N ,
both U.S. banks, tumbled 6% after a disappointing quarterly
results.
Gold gained 1% on Wednesday, rebounding from a sharp decline
in the previous session, boosted by a weaker U.S. dollar and
economic uncertainties.
Spot gold XAU= added 0.5% to $1,900.89 an ounce.
The Australian dollar AUD=D3 slid to a one-week low of
$0.7129 on Thursday morning after dovish comments from the
central bank governor that suggest another rate cut is
possible. E-mini futures for the S&P 500 EScv1 were flat.
Australia is set to release September unemployment data on
Thursday.
Tensions between Beijing and Washington remain in view as
the U.S. State Department has submitted a proposal for the Trump
administration to add China's Ant Group IPO-ANTG.HK to a trade
blacklist, according to two people familiar with the matter,
before the financial technology arm of e-commerce giant Alibaba
9988.HK is slated to go public. Investors are also tracking Brexit talks, as the deadline
for a pact on the European Union's relations with Britain nears.
EU leaders meeting on Thursday and Friday will tell their Brexit
negotiator Michel Barnier to step up talks to get a deal by Jan.
1, 2021. The U.S. dollar index =USD , which measures the greenback
against a basket of six major currencies, fell 0.15%, after
pulling its best day in three weeks on Tuesday, with the euro
EUR= unchanged at $1.1746.
In a sign that some investors preferred traditionally safer
assets for now, the yen JPY= gained 0.4% to hit a near
two-week high of 105.11 against the dollar.
A weaker dollar, which makes oil cheaper for holders of
other currencies, supported oil prices.
Brent crude LCOc1 gained 92 cents, or 2.2%, to $43.37 a
barrel, while U.S. West Texas Intermediate CLc1 added 87
cents, or 2.2%, to $41.0.
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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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