- European and US futures tumble amid global risk aversion
- Hong Kong benchmark drops 2% following China’s gambling crackdown
- Dollar stable, euro weakens ahead of ECB policy meeting
- Stable oil but gold plunges
HONG KONG, Sept. 9 (Reuters) – Asian stocks were set to experience their worst day in two weeks on Thursday, weighed down by the latest regulatory crackdown in China and global investors worried about an imminent cut in central bank stimulus measures , while the dollar continued to solidify.
European stocks appeared poised to follow suit, with FTSE futures down 0.65% and pan-regional Euro Stoxx 50 futures down 0.8%, early in the session ahead of a tight announcement. monitored during a meeting of the European Central Bank.
Analysts predict that the ECB will announce a symbolic step towards reducing its emergency economic support.
The largest MSCI Asia-Pacific stock index outside of Japan (.MIAPJ0000PUS) was last down 1.26%, which would be its worst daily performance since August 19, the last time the markets have decided they are worried about the US Federal Reserve’s cutting back on its massive asset purchase. program.
US equity futures, the S&P 500 e-minis, were down 0.45%.
“Global history seems sweet and it is being affected by the Delta variant as well as concern that the Fed will continue to head for a decrease. It’s a disturbing combination of things that I think weigh on the market. right now, ”said Rob Carnell Asia. head of research at ING.
“Until we get the announcement of the cone… it’s going to be that kind of environment where it’s the glass half full, the glass half empty depending on who is reading the tea leaves that day.”
Strong data on overnight US job openings changed the mood somewhat after investors bet that a lower payroll reading than last week’s forecast would mean the Federal Reserve would delay reducing its stimulus, sending the MSCI Global Equity Index (.MIWD00000PUS) to an all-time new Tuesday.
But local factors also played a role in the drop in Asian stocks on Thursday.
Hong Kong (.HSI) was one of the biggest losers, losing 2.02%, dragged down in particular by Chinese tech stocks after Chinese authorities called on game companies to resolutely tackle incorrect trends such as focus “only on the money” and “only on the traffic”.
This hurt companies with large gaming operations, and Tencent (0700.HK) fell 6%, Bilibili (9626.HK) lost 6.6% and NetEase (9999.HK) lost 7.4% .
Korean Kopsi (.KS11) fell 1.5%, also penalized by regulatory oversight of local tech players. In the case of Korea, fintech names such as Kakao Corp (035720.KS), which lost 7.2%, and Naver Corp (035720.KS), down 6.9%, were in the honor.
Australia (.AXJO) lost 1.97% after wage data showed a sharp drop in jobs in the first half of August, and Chinese blue chips (.CSI300) lost 0.63% .
Following its meeting on Thursday, analysts polled by Reuters expect the ECB to announce a reduction in the pace of its emergency bond purchases from the next quarter, but to continue buying bonds at least until 2024 as part of its main program, and possibly much longer. Read more
Ahead of the decision, the euro slipped to $ 1.1815, slightly off Friday’s two-month high of $ 1.1909, while the dollar rose slightly against a basket of its peers, after have won during the three previous sessions.
Benchmark 10-year Treasuries returned 1.3292%, little change in Asian hours, after declining slightly on Wednesday after a strong auction by the US Treasury.
Oil prices have remained stable as production in the Gulf of Mexico in the United States after Hurricane Ida has gradually returned to normal.
US crude remained stable at $ 69.29 per barrel. Brent crude rose 0.12% to $ 72.68 a barrel.
Gold edged down, affected by the stronger dollar, languishing near two-week lows with the spot price at $ 1,787.83 an ounce down 0.06%.
(Report by Alun John)
Reporting by Alun John in Hong Kong, additional reporting by Anushka Trivedi in Bengaluru; Editing by Lincoln Feast and Kim Coghill
Our Standards: The Thomson Reuters Trust Principles.