Asian stocks slide as focus turns to US jobs
Asian stocks slipped to three-week lows on Tuesday while bonds and the dollar steadied as investors tempered expectations for cuts to U.S. interest rates and waited on U.S. jobs data.
An interest rate decision is due in Australia in the meantime, with traders all but certain the central bank will keep rates steady, leaving the focus on the outlook and tone.
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.9% in early trading.
Gold hung on above $2,000 after a wild session on Monday, when it hit a record high in Asia before recoiling sharply lower. [GOL/]
Japan's Nikkei was dragged 1% lower to a three-week trough, mostly thanks to falling chipmaking stocks. [.T]
Treasuries had come under a little pressure overnight as traders calibrated pretty aggressive pricing for U.S.
interest rate cuts. Two-year yields rose 9.1 basis points and were steady at 4.64% in Asia trade. [US/]
Having been encouraged by a benign inflation report three weeks ago, futures imply about 125 bps of cuts in 2024.
U.S.
job openings data is due at 1530 GMT, and broader hiring figures, which had last month showed signs of a slowdown in the job market, will be published on Friday.
«While it's understandable the market has embraced the recent improvement in inflation and softer October labour market data, strong momentum in the economy remains,» ANZ analysts said in a note to clients. «We therefore expect that the (Fed), while encouraged by recent inflation improvements, will continue to adopt a hawkish policy stance.»
Hong Kong shares led declines around Asia, and the Hang Seng slumped to a fresh one-year low. At 16,470, the index is trading below its pre-Asian financial crisis high and is down almost 17% in a year when
