Asian Equities Fall on Japan Earnings

Asian stocks slid from a four-month high while European equity-index (SPA) futures were little changed. Emerging-market bonds rose as central banks signal more stimulus is needed while oil dropped and nickel slumped.

The MSCI Asia Pacific Index lost 0.2 percent by 7:09 a.m. in London, falling from the highest close since Jan. 13 as Japan’s Topix gauge declined 0.4 percent. Euro Stoxx 50 futures were 0.1 percent lower and those for the Standard & Poor’s 500 Index were also little changed after the underlying gauge fell from a record yesterday. South Korea’s government bonds advanced, sending the 10-year yield to a six-month low. Nickel dropped the most since 2011 and oil fell 0.4 percent.

Financial companies led equity declines in Tokyo after the nation’s three biggest banks all projected lower profit even as Japan’s economy expanded at the fastest pace since 2011. The Bank of Japan has many options for monetary easing, Governor Haruhiko Kuroda said. Federal Reserve Chair Janet Yellen will also speak today after saying last week the U.S. economy still needs support. Data on U.S. inflation, factory output and the job market is due, along with euro-zone gross domestic product.

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.