Asia Stocks Slip Ahead of U.S. Data; Yen Surges

Asian equities slumped before U.S. data releases and meetings between Donald Trump and China’s Xi Jinping later this week. Stocks in Shanghai advanced and the yen rose.

Japanese shares dropped as the yen climbed for a fourth day. Stocks in Shanghai and Taiwan rallied after markets reopened after a holiday. South Africa’s rand steadied after a pronounced slump. The Aussie recouped some of its declines triggered by a warning from the central bank that regulators are prepared to consider further measures to tame runaway house-price growth. Oil extended Tuesday’s advance.

Improving economic data has helped fuel gains that pushed global stocks to a record last month, leaving money managers assessing the scope for the rally to continue. The monthly U.S. jobs report comes at the end of a week that saw American automakers report disappointing sales. Stocks are becoming expensive relative to historical valuations, but they remain cheaper than bonds based on earnings and interest rates, according to Bloomberg Intelligence Equity Strategists Gina Martin Adams and Peter Chung.

Here are the major moves in markets:

Stocks

· The MSCI Asia Pacific Index declined 0.2 percent as of 12:59 p.m. in Tokyo. The Topix index lost 0.4 percent, erasing an earlier gain of 0.6 percent. The gauge closed at the lowest level since Dec. 7 on Tuesday.

· Australia’s S&P/ASX 200 Index slipped 0.1 percent. South Korea’s Kospi index fell 0.6 percent. Hong Kong’s Hang Seng lost 0.2 percent.

· The Shanghai Composite rose 1.1 percent, while Taiwan’s Taiex advanced 0.8 percent.

· Futures on the S&P 500 Index dropped 0.1 percent. The underlying gauge advanced 0.1 percent on Tuesday and the Dow Jones Industrial Average rose 0.2 percent. The Stoxx Europe 600 Index added 0.2 percent.


Currencies

· The yen rose 0.1 percent to 110.64 per dollar, climbing for a fourth straight day.

· The Bloomberg Dollar Spot Index fell 0.1 percent, after a two-day gain.

· The South African rand held on to Tuesday’s gain. Moody’s Investors Service postponed a review of the country’s credit rating after S&P Global cut its rating to junk amid a cabinet purge by President Jacob Zuma.

Bonds

· The yield on 10-year Treasury notes fell one basis point to 2.35 percent, after rising four basis points on Tuesday.

· Australian 10-year yields were flat at 2.60 percent after dropping seven basis points on Tuesday.

Commodities

· Oil climbed 0.6 percent to $51.31 a barrel, adding to Tuesday’s advance which was the highest close for crude since March 7.

· Gold was little changed at $1,255.38 an ounce, after a three-day advance.


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