Asian stocks cautious ahead of Japan bond auction
Asian shares opened cautiously after weak
US economic data
reinforced expectations for
Federal Reserve interest rate cuts
this year.
A regional gauge swung between small gains and losses at the open as South Korean shares gained for a third day while Japanese indexes dropped. Treasuries steadied after rallying across the curve Wednesday as data showed a contraction in US service providers and a deceleration in hiring. The dollar declined for a second day.
Markets are focused on the auction of
super-long-term bonds
in Japan Thursday. The sale comes after dismal showings recently, as demand for the far-end of the curve sputters across the globe.
US economic activity has fallen slightly in recent weeks, indicating tariffs and elevated uncertainty are rippling across the economy, according to the Fed's Beige Book. Still, a gauge of global stocks closed at a record high Wednesday amid speculation that the worst may be over after the tumult fueled by President Donald Trump's reciprocal tariff announcement two months ago.
Live Events
'The specter of a slowdown in growth continues to feed niggling fears that the equity market has gotten too far ahead of itself,' Kyle Rodda, a senior market analyst at Capital.com, wrote in a note Thursday.
Swap traders are pricing in two Fed reductions by the end of the year. The weaker yields on Wednesday added downward pressure to the greenback and left an index of the dollar 0.4% lower, compounding a weakening trend.
The Institute for Supply Management's index of services dropped a touch below the 50 level that separates expansion and contraction. Private payrolls rose the least in two years. Nonfarm payroll jobs data due Friday will provide further clarity.
'Markets are likely to view this through the lens of disappointment on the real growth side,' said Florian Ielpo at Lombard Odier Investment Managers. 'While this represents good news for the US economy in terms of potential rate relief, the improvement already priced into equities and credit spreads could be challenged by this series of weaker numbers.'
Later in the day the European Central Bank will hand down an interest rate decision.
Attention in Asia will be on the bond sale in Japan.
Japanese government bonds
are seen underpinned as US Treasury yields extend declines, with investors focused on demand at the 30-year auction later on Thursday.
Kevin Zhao, head of global sovereign and currency at UBS Asset Management, floated the idea that Japan should stop issuing long bonds to halt a recent selloff. Japan's sovereign debt is back in the spotlight as the government prepares for another sale of super-long-term bonds after dismal showings at recent auctions.
'It's time for the MOF to recognize this structural shift in demand for long-dated government bonds,' Zhao said in an interview. 'The MOF should announce they will stop issuing any bonds over 30 years, because there's no demand anymore.'
ETMarkets WhatsApp channel
)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
44 minutes ago
- Time of India
Tesla short sellers pocket about $4 billion in profits after Musk-Trump spat
Traders raked in $4 billion in profit from their short positions in Tesla shares on Thursday after a public feud between President Donald Trump and CEO Elon Musk led to the stock's biggest single-day drop ever. The gains from betting against the EV maker were the second biggest, data from analytics firm Ortex showed. Traders had pocketed $5.4 billion from a selloff on September 8, 2020, after the firm was looked over for inclusion into the S&P 500 index. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like War Thunder - Register now for free and play against over 75 Million real Players War Thunder Play Now Undo The stock closed down 14.3% on Thursday and lost about $150 billion in market value. With short sellers up $7.5 billion on their bet against Tesla, it remains the most profitable trade for the bearish investors among the "Magnificent 7" stocks this year. Apple stands second at $7.3 billion, according to Ortex.
India Today
an hour ago
- India Today
Who was Jeffrey Epstein? Elon Musk revives link with Donald Trump
One name is currently making headlines -- Jeffrey Epstein. This renewed attention began when Elon Musk shared a video on X that appears to show Donald Trump spending time with Epstein. Epstein, who died in 2019, was widely held responsible for a vast sex-trafficking operation involving underage girls and powerful son of working-class parents and the grandson of Jewish immigrants, Jeeferey Epstein was born in 1953. He showed early promise in mathematics and first real job -- teaching at Manhattan's elite Dalton School -- opened doors he could never have imagined. It was here that he met the man who would change his fortunes: a student's father, Alan "Ace" Greenberg, CEO of Bear Stearns. Epstein soon left the classroom behind for Wall Street, where he climbed quickly, even as details of his financial methods grew MONEY MANAGER WITHOUT A DEGREE Epstein founded J Epstein and Co. in 1988. He claimed to only take on clients worth more than a billion dollars. The secrecy around his firm was near-total, but it is known that he managed the wealth of retail tycoon Leslie Wexner for partnership brought him influence, access -- and staggering built a global portfolio of mansions, private jets, and even private islands in the US Virgin Palm Beach in 2005, the veil began to lift. Police began investigating claims that Epstein had abused a 14-year-old girl. What followed was a series of shocking discoveries: hidden cameras, ledgers, and a growing list of young girls who said they had been lured to his mansion under the guise of offering case should have ended then. But in 2008, Epstein struck a secretive plea deal with federal prosecutors. He served just 13 months in jail -- with a daily work-release would later be revealed that US attorney Alexander Acosta was advised to go lightly, allegedly due to Epstein's ties to intelligence or powerful individuals. The plea deal silenced many voices for a time, but not ISLAND, THE JET AND THE ELITEEpstein's network was unlike any other. His guests included politicians, academics, royals, and presidents. Bill Clinton, Donald Trump, Prince Andrew -- these were not fringe associates, but regular names in his travel flew them aboard his private jet, often referred to by locals as the 'Lolita Express.' The island of Little St. James became a place of interest to investigators and journalists alike. Survivors would later describe a world where influence and abuse collided with chilling 2018, an investigation by the Miami Herald reignited public interest. Journalist Julie K. Brown tracked down over 80 women who alleged abuse by Epstein or his associates. It was a tidal wave that could not be held back. In July 2019, Epstein was arrested at Teterboro Airport in New Jersey. He was charged with sex trafficking without bail in a Manhattan jail, Epstein was reportedly despondent. On July 23, he was found injured in his cell. Though labelled a suicide attempt, questions lingered. Within weeks, he was taken off suicide watch. On August 10, 2019, Epstein was found dead in his DEATHThe autopsy ruled it suicide by hanging. But faulty security cameras, missing guards, and the removal of his cellmate on the night of his death fed a storm of speculation. His lawyers insisted he was murdered. Others said the truth died with the end, Epstein died as he had lived -- behind closed doors, surrounded by secrets. But the survivors, the journalists, and the public refused to let the silence win. His case reshaped conversations around sexual abuse, justice, and how power hides in plain Watch
News18
an hour ago
- News18
US Troops In South Korea To Attack China In Case Of Taiwan Invasion? What Defence Secy Said
Last Updated: Currently, 28,500 American troops are stationed in South Korea, primarily tasked with deterring threats from North Korea. US Defence Secretary Pete Hegseth said that American forces stationed in South Korea are ready to respond if China launches a military assault on Taiwan. Pete Hegseth warned that 'Beijing is credibly preparing to potentially use military force to alter the balance of power in the Indo-Pacific," adding that the Pentagon is now 'reorienting toward deterring aggression by communist China." This strategic shift means US troops in South Korea, along with forces based in Japan, Hawaii, and Guam, would be part of a broader regional deterrence effort aimed at countering a potential Chinese invasion of Taiwan. Currently, 28,500 American troops are stationed in South Korea, primarily tasked with deterring threats from North Korea. While no changes have been made to the US footprint, officials say any future deployment strategy would be optimized to counter both Pyongyang and Beijing, as per Daily Mail. US Looking At China's Actions The growing US focus on China, however, poses a diplomatic challenge for South Korea. Public opinion has historically been wary of American military presence, and the country's newly elected President, Lee Jae-myung, has voiced support for engagement with North Korea. China's Exercises Around Taiwan Tensions in the region escalated sharply last month when China staged large-scale military exercises around Taiwan, deploying dozens of warships and aircraft in a simulated blockade. Satellite imagery revealed massive 'invasion barges"- modular mobile piers that could allow Chinese forces to land en masse on Taiwan's shores, analysts have said. Donald Trump On Taiwan This comes as US President Donald Trump pressured Taiwan to pay more for its defence while imposing steep tariffs on the island's exports- moves that some fear signal a willingness to treat Taipei as a bargaining chip in US- China negotiations, as per experts. First Published:
