(Bloomberg) — Stocks in Asia fell while Chinese stocks fluctuated ahead of a news conference on Thursday that was likely to detail support measures for the country’s beleaguered real estate sector.
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MSCI’s Asia Pacific Index – a measure of benchmarks in the region – fell for a third session, with shares from Sydney, Tokyo and Seoul all in the red. Stocks in China have fluctuated between gains and losses, with the mainland benchmark earlier down as much as 1.3%, down more than 10% from its October 8 high. Futures on the S&P 500 were little changed, while government bonds also remained stable in Asia.
Volatility in Chinese stocks has been high since late September, when a series of central bank stimulus measures unleashed a burst of optimism that is now rapidly cooling. Expectations are now growing to see whether authorities are willing to deploy more firepower to turn the economy and markets around.
A Bloomberg gauge of Chinese real estate stocks rose, while some dollar bonds issued by Chinese real estate companies rose as markets prepared for Thursday’s news conference by China’s housing minister. The focus will be on promoting what she called the steady and healthy development of the industry.
Any announcements “may only boost real estate stocks for one or two days, but not the entire market,” said Kenny Wen, head of investment strategy at KGI Asia Ltd. “Only the real estate sector will benefit from this and investors are still waiting for several trillion euros. budget package.”
Broader weakness in the semiconductor sector was highlighted Wednesday as Asian chip stocks including SK Hynix Inc. and Samsung Electronics Co Ltd, fell. The moves partly reflected a decline in shares of Dutch giant ASML Holding NV on Tuesday after it cut its 2025 outlook. In the US, Nvidia Corp. lost. 4.7%, which marked a slowdown for some of the sector’s biggest indicators.
“The tech-led retreat caused by the chip makers’ slump not only reflects earlier skepticism about the AI-driven rally, but more broadly the slowdown in this economy-sensitive industry certainly does not bode well for the global economic outlook,” Hebe said. Chen, analyst at IG Markets.
In the US, the S&P 500 fell to around 5,815 points and the Nasdaq 100 lost 1.4%. The dollar stabilized after rising to its highest level in about two months as former President Donald Trump defended proposals to dramatically increase tariffs on foreign imports. In addition, Fed Bank of Atlanta President Raphael Bostic said he expects the U.S. economy to slow this year but remain robust. He added that the downward trajectory of inflation could have some bumps.
Back in Asia, the yen traded around 149 per dollar after Bank of Japan board member Seiji Adachi stressed the need for a gradual approach to raising the benchmark interest rate. Yields on New Zealand dollars and government bonds fell after annual inflation fell sharply in the third quarter, returning to the central bank’s target range for the first time in more than three years.
Elsewhere, three of Southeast Asia’s largest economies will announce their monetary policy decisions later Wednesday. Indonesia and Thailand are expected to leave interest rates unchanged, while the Philippines will see a reduction.
Oil profits
Oil rose – after falling more than 4% on Tuesday – after Israel said it would make its own decision on how to attack Iran, leaving open the possibility that energy infrastructure could be targeted.
Crude oil has had a rollercoaster ride this month, with prices battered by tensions in the Middle East and China’s efforts to revive growth in its biggest importer. Traders have also been considering the market outlook for next year, with the International Energy Agency signaling the prospects for a global glut.
“It seems that dealers today have simply linked their machines to oil futures,” said Christoph Rieger, head of interest rate and credit research at Commerzbank AG. “Whether it makes sense to adjust your long-term inflation view based on this is another question.”
In other commodities, Singapore’s iron ore futures were little changed at just below $106 a tonne after swinging between gains and losses. Meanwhile, gold advanced.
Main events this week:
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Morgan Stanley earnings, Wednesday
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ECB interest rate decision, Thursday
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US retail sales, unemployment claims, industrial production, Thursday
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Fed CEO Austan Goolsbee speaks Thursday
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China’s GDP, Friday
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The US housing market starts on Friday
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The Fed’s Christopher Waller and Neel Kashkari will speak Friday
Some of the major moves in the markets:
Stocks
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Futures on the S&P 500 were little changed at 12:36 a.m. Tokyo time
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Nikkei 225 futures (OSE) fell 2%
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Japan’s Topix fell 1.3%
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Australia’s S&P/ASX 200 fell 0.3%
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Hong Kong’s Hang Seng rose 0.4%
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The Shanghai Composite rose 0.4%
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Euro Stoxx 50 futures fell 0.5%
Currencies
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The Bloomberg Dollar Spot Index was little changed
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The euro was unchanged at $1.0893
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The Japanese yen was little changed at 149.11 per dollar
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The offshore yuan rose 0.1% to 7.1252 per dollar
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The Australian dollar fell 0.1% to $0.6694
Cryptocurrencies
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Bitcoin rose 1% to $67,141.41
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Ether rose 1.7% to $2,616.73
Bonds
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The yield on 10-year government bonds was little changed at 4.03%
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The Japanese ten-year yield fell by two basis points to 0.950%
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Australian ten-year yields fell five basis points to 4.21%
Raw materials
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West Texas Intermediate crude rose 0.3% to $70.80 a barrel
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Spot gold rose 0.1% to $2,666.03 an ounce
This story was produced with the help of Bloomberg Automation.
–With help from Kurt Schussler, Yuling Yang, Jake Lloyd-Smith, and Zhu Lin.
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