(Bloomberg) — European stocks are set to echo Asia’s lackluster trading session as worries about the Chinese economy and a tight U.S. presidential election hurt risk sentiment. The yen ended a three-day decline.
Most read from Bloomberg
Euro Stoxx 50 futures moved lower, while US stock contracts advanced. Most Asian stock benchmarks retreated, with losses led by China. In Japan, Finance Minister Katsunobu Kato said he sees one-sided, rapid moves in the currency market after the yen fell more than 1% against the dollar on Wednesday.
U.S. 10-year yields fell three basis points, erasing most of the previous session’s gain when they reached their highest level in almost three months. A dollar gauge fell as oil prices recovered after a pullback on Wednesday as traders assessed tensions in the Middle East and the outlook for market balances heading into 2025.
In the US, the presidential battle between Donald Trump and Kamala Harris could hardly be more fierce, with the candidates statistically tied among likely voters in each of the seven swing states in the Bloomberg News/Morning Consult poll.
“Asian markets are generally mixed in today’s session, with some market fear as we get closer to the upcoming US elections,” said Jun Rong Yeap, market strategist at IG Asia Pte. “The recent strength of the US dollar and a rise in government bond yields remain a source of reluctance to aggressive risk-taking in the region.”
Asian shares have lost momentum after rising nearly 5% in September as traders weigh risks, including concerns over whether China’s recent wave of stimulus is enough to revive growth. The pace of Federal Reserve easing is also on investors’ radar, with swap traders now less than 100% certain of rate cuts at the two remaining policy meetings this year.
“There is still some doubt whether the stimulus will fundamentally change things,” Vanessa Xu, chief investment officer at VS Partners, told Bloomberg TV. The very large price swings in Chinese stocks in recent weeks reflect “a tug of war between tourist money and serious long money,” she said.
Elsewhere, Taiwan Semiconductor Manufacturing Co. the shipments to a customer after discovering that chips made for that customer at Huawei Technology Co. ended up, possibly violating US sanctions. In South Korea, shares of SK Hynix Inc. rose. after the company posted record quarterly profit and revenue. The operating profit of the Korean car company Hyundai Motor for the third quarter was outside the estimate.