Asian shares decline, tech weighs on US futures
Federal Reserve rate cuts.
Shares in Australia and Japan opened lower, and a gauge of US-listed Chinese companies slipped in New York trading on Wednesday. US futures declined, weighed down by post-market losses for Microsoft Corp. shares, which fell around 4% in late trading after disappointing second-quarter forecasts. The S&P 500 lost 0.3% and the Nasdaq 100 dropped 0.8% Wednesday.
Treasuries were steady in Asian trading, while Australian and New Zealand yields rose. A measure of the global bond market fell to the lowest level in almost three months on Wednesday. Traders trimmed bets on policy easing after data showed that the US economy expanded at a robust pace in the third quarter, helped along by accelerating household purchases and defense spending. A measure of underlying inflation rose 2.2%, roughly in line with the Federal Reserve’s target.
“Solid but not blistering growth fits nicely within the current economic backdrop,” even if that means a slower path of rate cuts, said Bret Kenwell at eToro. “It’s far better to have a strong economy and earnings driving stocks higher rather than hopes of easing monetary policy from the Fed,” he said.
Elsewhere in Asia, the yen was little changed at around 153 per dollar ahead of the Bank of Japan’s interest rate decision, where it is expected to stand pat at 0.25%. Taiwan will suspend trading on its stock exchange Thursday as a powerful typhoon barrels toward the archipelago.
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