GLOBAL MARKETS-Asian stocks falter after China data disappointment

GLOBAL MARKETS-Asian stocks falter after China data disappointment

Reuters  | Aug 14, 2020 11:10

GLOBAL MARKETS-Asian stocks falter after China data disappointment

* Asian stock markets:
* China data misses expectations
* Asian shares edge lower in cautious trade
* Treasury yields remain high after 30-year auction

By Stanley White and Lawrence Delevingne
TOKYO/BOSTON, Aug 14 (Reuters) - Asian shares fell on Friday
after lacklustre Chinese economic data and worries about a delay
in U.S. fiscal stimulus discouraged some investors from taking
on risk.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS fell 0.24%, although shares in Japan .N225
rose 0.07%.
South Korean stocks .KS11 fell 1.27% after authorities
reported the largest number of new coronavirus cases since
March. Chinese shares .CSI300 erased early gains and fell 0.1% as
a slower-than-expected rise in industrial production and a
surprise fall in retail sales weighed on investor sentiment.
E-mini futures for the S&P 500 EScv1 rose 0.23%.
Yields on U.S. Treasuries remained elevated after an auction
of 30-year bonds on Thursday was met with weak demand.
Further equity gains are likely to be limited as investors
await progress in negotiations over U.S. economic stimulus,
which is necessary to prevent a nascent recovery in the world's
largest economy from sliding into reverse.
The S&P 500 .SPX ended slightly lower on Thursday after
briefly trading above its record closing high level for a second
day as doubts about U.S. stimulus measures took hold.
"Many say that the best treatment for altitude sickness is
to stop and rest where you are," Rodrigo Catril, Senior FX
Strategist at National Australia Bank in Sydney, wrote in a note
about the slight pullback in U.S. stocks and government bonds.
The mood was cautious in Asia after Chinese retail sales
unexpectedly fell in July, suggesting domestic demand is still
struggling after the coronavirus outbreak. Some traders stuck to the sidelines before a meeting between
U.S. and Chinese officials about their Phase 1 trade deal on
Saturday. Spot gold XAU= held steady at $1,952.41, close to a record
high set last week in another sign of cautious sentiment.
Data on Thursday showed the number of Americans seeking
unemployment benefits dropped below one million for the first
time since the start of the COVID-19 pandemic, but this was not
enough to change economists' views that the jobs market is
faltering. Yields on 30-year U.S. Treasuries US30YT=RR stood at
1.4141% in Asia on Friday, close to a five-week high after the
government sold a record amount of 30-year bonds to weak demand
on Thursday.
Benchmark 10-year Treasury yields traded at 0.7094% in Asia,
close to a seven-week high hit on Thursday. Higher yields broadly supported the U.S. dollar, which held
steady at 106.94 yen JPY= and at $1.1811 against the euro
EUR=D3 .
Elsewhere, the Australian dollar AUD=D3 edged lower to
$0.7139 as the weak Chinese data suggests less demand for
Australian commodity exports.
Oil futures bounced in Asia U.S. crude CLc1 rising 0.14%
to $42.30 per barrel. Brent LCOc1 edged 0.18% higher to $45.04
a barrel, but further gains may be limited by worries about weak
global energy demand.

Global assets
Global currencies vs. dollar
Emerging markets
MSCI All Country Wolrd Index Market Cap

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