(Bloomberg) – Stocks in Asia were mixed, reports on Moderna Inc.’s coronavirus vaccine adding to concern that an effective way to beat the pandemic remains far away, outweighing calls to stick to betting on more equity gains. T-bills posted an overnight advance.
Japan and India saw the bulk of the gains, with more modest gains in Sydney and Seoul. Stocks fell in China and Hong Kong. US futures contracts edged up while European contracts fell. The S&P 500 lost ground in the last trading hour and has closed. Risky assets started the week in the limelight after Moderna fueled hopes for a coronavirus vaccine, but investors are struggling to maintain optimism. Crude oil slipped below $ 32 a barrel in New York.
“We’re pretty careful,” said Shawn Matthews, founder and chief investment officer of Hondius Capital Management LP, on Bloomberg TV. “If you look at the economy, it looks like it is the summer of hope right now, when everyone is hoping it will turn around. “
The big money managers from Capital Group Inc. to BlackRock Inc. maintain confidence in stocks despite warning calls from parts of Wall Street. However, headwinds remain for equities, including a deterioration in US-China relations. In another sign of a tighter scrutiny of capital flows to the Asian nation, the Nasdaq is expected to unveil new rules for initial public offerings, including tighter accounting standards that will make it more difficult for some Chinese companies listing on the stock exchange.
Walmart and The Home Depot have both halted their outlook for the year, the latest companies to show difficulty in planning the way forward. Earlier, Federal Reserve Chairman Jerome Powell reiterated in a Senate hearing that the central bank is ready to use all the weapons of its arsenal to help the US economy endure the coronavirus pandemic.
In the meantime, the New Zealand dollar has risen after comments by central bank governor Adrian Orr have suggested that any decision to bring interest rates below zero remains at some point. In Japan, the Tokyo Stock Exchange was among the stocks that jumped amid speculation that it might be a candidate to join the Nikkei 225 equity index.
Here are some of the main market developments:
Futures on the S&P 500 rose 0.7% at 5:37 am in London. The Topix index for Japan rose 0.8%, the Hang Seng in Hong Kong fell 0.1%, the Shanghai Composite fell 0.5%, the Kospi in South Korea added 0.3 %, the Australian S & P / ASX 200 index gained 0.5%, the future of the Euro Stoxx 50 fell by 0.2%.
The yen has changed little at 107.79 per dollar. The offshore yuan remained at 7.1172 per dollar. The euro bought $ 1.0940, up 0.2%.
The yield on 10-year Treasury bills remained at 0.69%. Australia’s 10-year yield fell three basis points to 0.95%.
West Texas Intermediate crude was $ 32.15 a barrel, up 0.6%. Gold rose 0.2% to $ 1,748.81 an ounce.
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