Asian stocks dipped on Wednesday and the dollar inched up from three-month lows after Federal Reserve officials tempered expectations in the markets for aggressive monetary easing.
Asian Stocks
- Euro Stoxx 50 contracts lost 0.3% as of 3:18 p.m. in Tokyo, while S&P 500 futures rose less than 0.1%. The underlying gauge fell 1% Tuesday.
- Japan’s Topix index fell 0.6% at the close.
- South Korea’s Kospi was little changed.
- Australia’s S&P/ASX 200 Index lost 0.3%.
- Hang Seng rose 0.2%.
- Shanghai Composite dropped 0.1%.
Currencies
The New Zealand dollar edged higher after the Reserve Bank of New Zealand (RBNZ) stood pat on monetary policy on Thursday, keeping rates at a record low 1.50%. But the kiwi’s gains were limited as the central bank expressed concern towards economic risks at home and abroad.
“Overall, today’s announcement provides a strengthened signal that another cut is coming, most likely soon, unless there is a marked improvement in the global outlook,” wrote economists at HSBC.
- The yen was at 107.39 per dollar.
- The offshore yuan held at 6.8889 per dollar.
- The euro bought $1.1357.
- The greenback had sunk to the six-month trough as the yen, a perceived safe haven, had drawn bids in the face of brewing U.S.-Iran tensions.
- The kiwi last traded 0.2% higher at $0.6651.
- The dollar index against a basket of six major currencies was up 0.15% at 96.302, extending modest overnight gains.
Bonds
- The yield on 10-year Treasuries edged up to 2%.
Commodities
- U.S. crude oil futures advanced roughly 2% to touch a four-week high of $59.10 per barrel after data showed a decline in U.S. crude stocks.
- Spot gold slipped from a six-year high of $1,438.63 an ounce scaled on Tuesday after the comments from Fed officials trimmed expectations for a rate hike in July.
- Gold was down 1% at $1,407.61 an ounce, headed to snap a six-day winning streak. The precious metal was still up 8.5% so far this month.
