Asia Stocks Steady as Mood Fades on Wall Street: Markets Wrap

Asian equities traded in tight ranges as Wall Street’s risk-on mood faded a day after the rally in big tech.

(Bloomberg) — Asian equities traded in tight ranges as Wall Street’s risk-on mood faded a day after the rally in big tech.

Shares were mostly little changed in Japan and South Korea at the open. Equities were also flat in Australia, while futures for Hong Kong stocks slipped 0.5%. Elevated bond yields continue to cause concern, even as moves moderated on Tuesday.

Stock traders are awaiting Nvidia Corp.’s results later Wednesday, which are set to test the fervor around the artificial-intelligence hype, while wider markets are marking time ahead of a speech from Federal Reserve Chair Jerome Powell on Friday. Nvidia fell 2.8% on the eve of its quarterly report. 

Further signs of recovery in China’s internet sector emerged after Baidu Inc.’s revenue rose the most in more than a year. The company reported a larger-than-projected jump in sales for the June quarter as its net income rose 43%.

US stock futures edged higher in Asian trading after the S&P 500 extended its August slide on Tuesday. Banks dropped as S&P Global Ratings joined Moody’s Investors Service in cutting some US lenders amid a “tough” climate. Macy’s Inc. sank 14% as credit-card delinquencies accelerated, raising a red flag about consumer health. 

Treasuries gained in Asia, with yield on the two-year still slightly above 5%. Resilient US economy has investors positioning for the Federal Reserve to keep borrowing costs elevated.

In a sign of how significant Nvidia’s results will be, the options market is bracing for a move of about 10% following the results. With Nvidia accounting for over 3% of the S&P 500, the stock action will possibly have broader implications. The shares briefly touched an all-time high on Tuesday. 

Major currencies traded in narrow ranges early Wednesday. The yen was stronger versus the dollar after closing for its third gain in four days, while remaining at a relatively weak level. The Australian dollar was slightly up.

Meanwhile, the surge in US yields has been the primary reason stocks have declined over the past several weeks, with investors “pushing out” the date of expected rate cuts as they begin to accept the Fed may keep rates “higher for longer,” according to Tom Essaye, founder of “The Sevens Report” newsletter.

“It’s not the height of rates that matters as much as how long they stay high,” Essaye noted. “If we see Powell hint at higher for longer on Friday, we will need to brace for more equity market volatility.”

Powell is set to speak Friday at the Kansas City Fed’s Jackson Hole Economic Policy Symposium. Investors will look to the highly anticipated speech for clues on the outlook for interest rates, which the Fed last month lifted to a range of 5.25% to 5.5%, the highest level in 22 years.

Elsewhere, crude oil slipped while gold inched higher.

Key events this week:

  • Eurozone S&P Global Services & Manufacturing PMI, consumer confidence, Wednesday
  • UK S&P Global / CIPS UK Manufacturing PMI, Wednesday
  • US new home sales, S&P Global Manufacturing PMI, Wednesday
  • US initial jobless claims, durable goods, Thursday
  • Kansas City Fed’s annual economic policy symposium in Jackson Hole begins, Thursday
  • Japan Tokyo CPI, Friday
  • US University of Michigan consumer sentiment, Friday
  • Fed Chair Jerome Powell, ECB President Christine Lagarde to address Jackson Hole conference, Friday

Some of the main moves in markets:


  • S&P 500 futures rose 0.1% as of 9:14 a.m. Tokyo time. The S&P 500 fell 0.3%
  • Nasdaq 100 futures rose 0.1%. The Nasdaq 100 fell 0.2%
  • Japan’s Topix index fell 0.1%
  • Australia’s S&P/ASX 200 Index was little changed
  • Hong Kong’s Hang Seng futures fell 0.5%


  • The Bloomberg Dollar Spot Index was little changed
  • The euro was little changed at $1.0852
  • The Japanese yen rose 0.1% to 145.71 per dollar
  • The offshore yuan was little changed at 7.3018 per dollar
  • The Australian dollar rose 0.1% to $0.6430


  • Bitcoin rose 1.1% to $26,146.5
  • Ether rose 0.4% to $1,637.85


  • The yield on 10-year Treasuries declined two basis points to 4.31%
  • Japan’s 10-year yield declined 0.5 basis point to 0.660%
  • Australia’s 10-year yield declined four basis points to 4.23%


  • West Texas Intermediate crude fell 0.2% to $79.52 a barrel
  • Spot gold rose 0.1% to $1,899.72 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Rita Nazareth.

More stories like this are available on

©2023 Bloomberg L.P.