Stocks dipped on Thursday as a spike in short-term Chinese interest rates fanned worries about policy tightening in the world’s second-largest economy, although improving corporate earnings and easing market volatility helped stem losses.
U.S. bonds extended their decline, boosting the 30-year yield to its highest level since March, following stronger economic data and a push in Washington to pass a massive relief plan.
European stocks are expected to be steady to slightly weaker, with Eurostoxx futures down 0.2% and FTSE futures up 0.1%.
MSCI’s ex-Japan Asian-Pacific index fell 1.2%, led by drops in South Korea and China, while Japan’s Nikkei lost 1.1%, both snapping a three-day winning streak. U.S. stock futures slipped 0.25% in Asia.
A rise in Chinese short-term interest rates spooked risk assets, though analysts also noted position adjustments ahead of the Lunar New Year starting next week are likely to play a role too.
· Japanese shares fall weighed by chip shares; Sony jumps on upbeat forecast
Japanese shares snapped a three-day winning streak on Thursday, dragged down by declines in chip-related companies, although a surge in shares of Sony limited some losses.
Sony’s shares rose 9.54% to hit its highest level since September 2000, and were the biggest gainer on the Nikkei share average, after the electronics and m.edia giant raised its full-year profit outlook.
Nikkei declined 1.06% at 28,341.95, while the broader Topix dipped 0.32% to 1,865.12.
· China stocks end lower as liquidity concerns outweigh foreign inflows
China stocks ended lower on Thursday, paring some of the sharp losses earlier in the session, as worries over signs of liquidity tension ahead of the upcoming Lunar New Year holiday offset continued capital inflows.
At the close, the Shanghai Composite index was down 0.44% at 3,501.86, while the blue-chip CSI300 index was down 0.21% to 5,473.95.
· European markets eke out gains as earnings, coronavirus remain in focus
European stocks inched higher on Thursday morning as investors remain focused on earnings reports and developments on the coronavirus pandemic.
The pan-European Stoxx 600 hovered 0.2% above the flatline in early trade, with autos gaining 1% while household goods fell 0.6%.
Reference: CNBC, Reuters
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