💙 🔷 Not impressed by Big Tech in Q3? Explore these Blue Chip Bargains insteadUnlock them all

GLOBAL MARKETS-Asia stocks tentative after a merciless Oct for global equities

Published 2018-10-30, 08:35 p/m
© Reuters.  GLOBAL MARKETS-Asia stocks tentative after a merciless Oct for global equities
EUR/USD
-
USD/JPY
-
AXJO
-
JP225
-
DX
-
CL
-
KS11
-
MIAPJ0000PUS
-
MIWD00000PUS
-
DXY
-

* MSCI Asia-Pacific index up 0.05 pct, Nikkei rises 0.5 pct

* Wall St bounce helps, but trade war woes linger

* Graphic: World FX rates in 2018 http://tmsnrt.rs/2egbfVh

By Shinichi Saoshiro

TOKYO, Oct 31 (Reuters) - Asian stocks pulled away from 20-month lows to eke out small gains on Wednesday, thanks to a rebound on Wall Street though investors remained cautious after a torrid October month that saw trillions of dollars wiped out of global equity markets.

A confluence of factors from Sino-U.S. trade tensions to worries about U.S. corporate earnings to the end of easy money in development economies have spurred volatility in financial markets in the past few weeks.

Anxiety that global growth might be rapidly losing momentum has been at the centre of the market ructions. Early Asian trade on Wednesday suggested investor sentiment remained fragile.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added 0.05 percent, but it was still on track to fall roughly 11 percent this month.

The index had dropped to its lowest level since February 2017 on Monday as worries over corporate profits weighed heavily on U.S. equities.

Wall Street's three stock indexes jumped more than 1 percent on Tuesday, helped by strong gains for chip and transport stocks as investors took advantage of cheaper prices following the steep recent pullback for equities. .N

Australian stocks .AXJO edged up 0.1 percent, South Korea's KOSPI .KS11 rose 0.35 percent and Japan's Nikkei .N225 advanced 0.5 percent.

"The recent slide in equities had gone to such an extent that it was bound to invite buyers, such as in the Japanese stock market," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management in Tokyo.

The MSCI World index .MIWD00000PUS has lost about 8.50 percent of its value so far in October, evaporating a whopping $4.5 trillion in just one month, according to analysis by Kyle Rodda, analyst at IG in Melbourne.

Ichikawa at Sumitomo Mitsui Asset Management said the outlook for markets was still cloudy, adding that the U.S.-China trade row will "likely to remain a factor of concern beyond the U.S. midterm elections."

U.S. President Donald Trump said during an interview with Fox News late on Monday that he thought there could be an agreement with China on trade. But he also said he had billions of dollars worth of new tariffs ready to be imposed if a deal was not possible. currencies, the dollar index against a basket of six major currencies was near a 16-month peak of 97.02 .DXY scaled overnight after data showed U.S. consumer confidence rose to an 18-year high in October, suggesting strong economic growth could persist in the near term. dollar rose to a three-week high of 113.20 yen JPY= .

Immediate focus for the yen was on the Bank of Japan's policy decision due later in the day.

Later on Wednesday, the BOJ is set to keep monetary policy steady and maintain its optimistic view on the economic outlook, even as global trade frictions, growth worries and volatile markets put it further away from achieving its elusive inflation target. euro was little changed at $1.1346 EUR= after losing 0.25 percent the previous day. A dip below $1.1336 would take the single currency to its lowest since mid-August.

China's yuan was a shade weaker at 6.9727 per dollar in offshore trade CNH=D4 and in close range of a 21-month low of 6.9770 brushed on Tuesday.

The yuan has been pressured by worries about slowing Chinese economic growth and a potential sharp escalation in the U.S.-China trade war, falling this week to its lowest level in a decade in onshore trading.

Oil prices recovered slightly after dropping to multi-month lows the previous day on signs of rising supply and concern that global economic growth and demand for fuel will fall victim to the U.S.-China trade war. O/R

U.S. crude futures CLc1 was up 0.46 percent at $66.49 per barrel after dropping to $65.33 on Tuesday, their lowest since mid-August.

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.