Asian Stocks Decline As Traders Trim Fed Cut Bets On Strong Data
Stocks in China will be in focus going into trade on Friday, with the country scheduled to report its gross domestic product data.
Most stocks in the Asia-Pacific region declined in early trade on Friday taking mixed cues from Wall Street as traders dialled down rate cut bets on strong retail sales data.
Australian benchmark S&P ASX 200 was 64 points, or 0.8%, lower at 8,290, while the South Korean Kospi was down 6 points, or 0.18%, at 2,605 as of 6:00 a.m.
Stocks in China will be in focus going into trade on Friday, with the country scheduled to report its gross domestic product data. According to Bloomberg estimates, economic growth for the third quarter is expected to be the slowest pace in six quarters, once again falling behind the 5% target.
Another disappointing policy briefing pulled down stocks in China on Thursday with the benchmark CSI 300 closing lower by 1.13%. China's property stocks gauge extended losses to over 6% on reports of hike in 'White List' funding.
The housing minister vowed to stabilize China's property market from declining further and aimed to renovate 1 million houses in 'urban villages'.
The Japanese Yen topped the psychological level of 150 per dollar after the country reported a 2.5% rise in headline inflation which met estimates. Further intervention by the central bank is on the card after the current surpassed the key level.
Meanwhile, strong retail sales in the US helped traders trim their bets on Federal Reserve rate cuts this year. Sales data in September rose more than forecast. The value of retail purchases increased 0.4% after a 0.1% gain in August.
Treasury yields in the US climbed as the bond market took a hit with rate cuts hopes coming down. The 10-year yields advanced seven basis points to 4.09%. Traders foresee less than a half-point of easing over the next two Fed meetings, Bloomberg reported.
Stocks in the region closed mixed. The Dow Jones Industrial Average and Nasdaq Composite climbed 0.37% and 0.04%, respectively, while the S&P 500 slipped 0.02%.
On the commodity front, crude oil prices were poised for increased volatility as tension escalated in West Asis with Israel killing Hamas leader Yahya Sinwar—the mastermind of last year’s Oct. 7 assault—in southern Gaza.
Brent crude was trading 0.23% higher at $74.62 a barrel as of 6:00 a.m. IST. West Texas Intermediate was up 0.25% at $70.85 a barrel.
